The narrative surrounding non-fungible tokens (NFTs) is undergoing a transformation. After experiencing a period of rapid growth followed by a decline in trading volumes, some members of the crypto community are starting to question the viability of digital collectibles.
While some are writing obituaries for NFTs, those directly involved in the asset class have a different perspective. Experts in the Web3 space believe that the market is maturing rather than dying. As the initial hype settles, NFTs are finding their place in more practical and sustainable applications.
Cointelegraph reached out to professionals working in the blockchain space to gather their thoughts on the current state of NFTs.
According to Anoir Houmou, founder and CEO of the Sui-backed video engagement platform RECRD, the idea that NFTs are dead is an oversimplification. Houmou explained that every emerging technology goes through correction cycles, and the rise of new SocialFi and GameFi platforms is evidence of progress. He also mentioned that institutional investment in NFTs is expected to increase as they become more purpose-driven.
Although NFT volumes have decreased, Yale ReiSoleil, CEO and co-founder of NFT trading platform Untrading, sees this as a natural market correction rather than a sign of the end. ReiSoleil believes that the tokenization of real-world assets is growing healthily and pointed out that Bitcoin-based NFTs recently recorded sales volumes of $148 million, indicating strong NFT sentiment.
Oh Thongsrinoon, the chief marketing officer at Altava Group, which connects luxury brands to Web3, shares similar sentiments. Thongsrinoon stated that cycles always have a peak, and in the case of the NFT space, the tokenization of real-world assets is experiencing healthy growth. He added that Bitcoin’s position as one of the top three leading blockchain networks for NFT sales demonstrates the positive sentiment towards NFTs.
When asked if NFTs were dead, Toshiuki Otsuka, founder of the snap-to-earn platform SNPIT, firmly rejected this notion. Otsuka believes that NFT technology has immense potential across various industries. He expects more innovative and practical applications to emerge as the technology matures, leading to broader adoption and utility.
Houmou also argued that NFTs have moved past their infancy and that developers are finding new and creative ways to utilize them. He explained that NFTs are now more than just digital collectibles and are transforming industries, such as the $250 billion creator economy, by providing transparency, security, and new revenue models.
Thongsrinoon also emphasized the importance of real-world asset tokenization and proof of ownership as the best use cases for NFTs. He believes that adding real-world value brings tangibility and trust to NFTs, making them ideal for applications like real estate or government bonds.
In summary, the narrative surrounding NFTs is evolving, with experts in the Web3 space asserting that the market is maturing rather than dying. NFTs are finding their place in practical and sustainable applications, and professionals believe in the immense potential of NFT technology across various industries. As the technology continues to develop, more innovative and practical use cases are expected to emerge, driving broader adoption and utility for NFTs.