The Non-Fungible Token (NFT) market has experienced a remarkable surge in recent years. Reflecting on 2021, the total value of NFTs traded reached a significant milestone of $17.6 million, then surged to $24.7 billion in 2022. This rapid growth has captured the attention of investors and become their top-notch favorite investment portfolio. 2023 saw the NFT market’s total value slump to $11.8 billion. Will NFTs be worthless in 2024 and beyond? As we delve deeper into the past two years, let’s explore the key factors that have contributed to these exciting events.
NFT market collapse in recent years
Overtaken by AI-related searches
After Artificial Intelligence (AI) became a trending topic, searches skyrocketed and overwhelmed all other topics. AI-related search volume reached a record 13,210% in 2023.
Meanwhile, as of early 2024, search volume for NFT-related keywords had dropped by 82%. The value of NFT collectibles is down 90% since 2021’s peak.
In speculator’s evaluation, the NFT market collapsed, becoming a fad after a series of scandals in the crypto market in 2022. However, the future of NFT in 2024 shows that the correlation between these two markets is not as close as it seems. From the investor’s perspective, they are still deeply involved in this market. It is evolving and generating great impacts on the entire market. NFT investors are still firmly holding NFTs in their hands, preparing for a stronger breath-in. So, are NFTs still a thing?
Mature signs of the market
NFTs were once the desire of many global brands. Top companies such as Coca-Cola, Nike, Gucci, etc. have successfully adopted NFT as their strategy. They used NFT to seamlessly combine diverse experiences for customers from Web2 to Web3. Leveraging innovative technologies like NFTs within a brand’s communication strategy can enhance customer engagement and foster long-term brand loyalty. NFTs have become an indispensable tool for the digital economy, especially in the age of blockchain.
Top companies have successfully adopted NFT as their strategy. Source: Coca-Cola
The market report in the 2023–2024 stage shows that NFTs are still a thing, moving towards being associated with more sustainable economic and social values, emphasizing ownership and physical verification rather than shocks due to market psychology. The NFT market is capable of maturing in the downturn phase, quietly but strongly. After the SEC’s investigation surrounding Etherium 2.0, doubts about NFT’s dead instability have been removed. The NFT market saw strong growth again soon after, with an 18% rise in total revenue within 24 hours.
How does the NFT market fall and rise in 2024?
NFT’s future: describing the transformation
The reports from leading NFT market tracking platforms such as CryptoSlam, nonfungible, and DappRadar show that 2024 will witness significant moderations in this sector. Prominent among them is the robust appearance of more creators, artists, and derivative products. In the current landscape, the NFT market is quite prosperous and solid, with platforms focused on sustainable value and real benefits.
The NFT market is abundant and fertile. Source: Coinmarketcap
The comment that the NFT market is dead this year is said to be quite hasty and exaggerated. While obituaries alternately call NFTs, experts and marketers still believe in the long-term economic value and NFT’s future. NFTs are dead, but only a portion in the fomo mentality and at exaggerated values. Now, they are maturing inside with a strong core where they have more value, multi-purpose, and sustainability than in the previous phase.
Anoir Houmou, founder and CEO of SUI-backed platform RECRD, recognized that, explaining that calling NFTs dead is an “oversimplification” when evaluating this market. The psychology of investors is more mature and has a confident, profound, and economic vision when investing. “We are focusing on a sustainability stage, real-world utility, and integration into the broader technology ecosystem,” he shared.
Market Cap & Volume in the last 12 months. Source: NFTGo
In spite of the fact that total capitalization and trading volume suffered a big dump in 2023, some good signals have appeared since 2024. Data show that from the beginning of 2024, market cap and trading volume tend to increase, then gradually decrease in the second quarter with mitigation. This shows that a mature market is emerging. Investment demand is condensed, and blue-chip NFTs still hold sway.
The NFT market adjusts to be different
The NFT market in 2024 has positioned itself as a long-run investment market with highly independent valuations following complicated progress. Holders are rising, while the number of traders is plummeting. The market was volatile but has become calmer and less noisy than before. Seller and buyer numbers always balance, showing the market potential and hopefulness of flourishing. There will not be any major difference in price as long as the balance between buyers and sellers continues. We can completely believe in the adjustment of the market. It is ready to become strong enough and embrace the digital economy.
Seller and buyer numbers are tending to balance. Source: NFTGo
A hopeful future for the NFT market in 2024 and beyond
The NFT market gains popularity
Up to now, the NFT sectors have clearly differentiated themselves to attract customers. Each NFT sector possesses its own values and features that are valuable in the wider ecosystem. Creators are entering an economic market with their meticulous strategy. The fierce competition requires them to have exclusive business and customer development strategies, as well as profound research, robust influence, and trustworthy utilities. The business models of NFT projects aim to provide a seamless experience not only on Web3 platforms but also by connecting and serving them in other aspects of customers’ lives. Web3 is steadily on the path to support and create real value like Web2, which will help NFTs proclaim their value and never die.
Creators have their own strategies in the NFT market
Pudgy Penguins is a well-known name for its successful customer outreach strategy
Take the example of Pudgy Penguins, it is not only a top collection. It’s famous for its ubiquitous coverage in the retail market. Pudgy Penguins has cooperated with Walmart to sell physical products related to their NFT collection. Most recently, they announced their presence at Target with Penguin toys and collectibles. Pudgy Penguins is a well-known name for its successful customer outreach strategy, not only in the NFT market but also in other traditional markets.
Another example is Crypto Punk, the first major NFT collection in the NFT market, which is still growing powerfully and leading the market reports. Thanks to its historical and pioneering elements, Crypto Punk’s value has always been maintained over time due to its rarity and sense of traditional art.
Crypto Punk is the historical collection
NFTs stand in separate development space
Regardless of the strong relevance between NFTs and ETH, the NFT market has kept its value despite fluctuations in ETH prices. NFT and ETH capitalization rates are highly disparate as ETH reaches historic lows. This shows that the NFT market has developed independently. Through their participation, investors fostered a stable and confident market environment, demonstrating resilience against external influences.
How do we prepare for the NFT market’s future?
Learn from the NFT market of the past and prepare for the future
It is difficult to reject the fluctuations in the NFT market over the past two years. NFT has clearly revealed its usefulness and value against that backdrop of chaos. The NFT market has evolved from a focus on speculative elements to one that emphasizes practical applications and demonstrable value. This also helps investors have a more realistic, objective, and profound view when choosing portfolios.
Learn from the NFT market of the past and prepare for the future
From an investor community perspective, NFTs are no longer a worthless collection or a fad. With clear visions, NFT will soon become a bridge between the physical world and the digital world, paving the way for a multi-dimensional experience space and an endless flow of customer engagement.
Grasp the trends to jump into the NFT market promptly
The above evidence and signals show that NFTs are not dead. With the development of AI and dense media sharing platforms, NFTs have gone beyond the limits of creative art and collection. Intrinsic value is not the market’s support or speculation. By complementing and symbiosizing with each other in the investment and real economic markets, NFTs are anchoring themselves to a solid foundation.
Grasp the trends to jump into the NFT market promptly
During Bitcoin’s bullsh*t period in early 2024, the NFT market has hopes of returning because of its relevance to blockchain. Starting with a fever, the NFT market has now stabilized and successfully “immunized.” Creators and project owners are doing a great job of generating value for NFTs in the real world by expanding their visibility, tangibility, and trust.
Conclusion
NFT does not yet live in the FOMO stage for unknown reasons. The market itself has stood on its own and matured steadily; it is not dead. As the vast and varied space for AI and Blockchain technology continues to develop, NFTs have become a powerful tool in data authenticity and ownership identification. There is a lot of potential to apply NFTs in the fields of education, health, life, medicine, and law. That is the main factor enabling the NFT market to expand and be alive in the future.
