What's the next step for NFTs?
What's the next step for NFTs, what are the new upcoming innovations, what happens if we go into a Crypto bear market? Let's go through it.
If Crypto were hypothetically to go into a bear market tomorrow, what happens to NFTs?
We’ve ventured into fine art, collectibles, and sports — but what’s next?
Is it worth it to participate in the community if “NFTs are dead”?
Let’s break it down slowly — this article was written on the 22nd of June, 2021.
We are currently in a stage where avatar collectibles are releasing multiple times (a day) and selling out… instantly! And these same projects are trading multiples on the secondary market. I’m talking millions of ($) in volume, while the Crypto market fails to stabilise, down only. It’s interesting to see the general thought pattern of a new individual when going to purchase a Bored Ape, as an example, and it looks like it’s separate from just buying Crypto and caring about the price even though Ethereum is a key part of this process.
The crazy thing is that the volume in these successful projects is still ever so small. Bored Apes released less than 2 months ago, at the current floor price of 3.4 ETH for a BAYC at the time of writing, which’s equal to 34,400 ETH (excluding high-end apes that sell for 10, 20, 50 ETH) — $65M dollars.
And this is with Ethereum down more than 50% from its all-time high this year. To confirm, I am very bullish on Ethereum as time passes and I am also very bullish on NFTs. However, the NFT market seems to have a strangely weird reaction to Crypto prices. Another example is an absurdly low volume month after the initial NFT hype period and this is the same time period that Ethereum rose to $4K+ continuously breaking its previous all-time highs. It is also key to mention that arguably the most relevant “historic” project — CryptoPunks, have seen a decline in floor prices and volume. Excluding high sales like the Christies’ lot and Sotheby’s Alien adding up to a total of $18.5M dollars. Which would supposedly be bullish?
I am carefully investing (speculating, it’s all speculation at the end of the day) in specific projects that I believe will last, or short-term flips.
Here is a thread to answer the initial question — my thoughts have rarely changed since then. It’s all a time game as I like to say, take all my pieces of “advice” cautiously.
I would say that the bear season is the best time to put your head down and build long-term projects. These projects will eventually flourish in the bull market. As for what I think NFTs can venture into separate from what we have already advanced into (fine art, collectibles, a bit of sport) — we are still so new to exploring new concepts with NFTs. I know a few people that are building behind the scenes, some big things, and we have already seen public funding reaching tens of millions for companies exploring NFTs and the Metaverse too. If you are bullish on the Metaverse, NFTs will be the most bullish thing for Metaverses. They are the best way to monetise a digital world, and that’s just the start.
Gaming. Gaming will be MASSIVE. Axie Infinity is probably one of my favourite projects so far, and it brings economic benefits to 77% of the population. 3rd world countries and I do believe it deserves its own article so here is a link to one that explains Axie more. Axie is just a small part of our current NFT ecosystem but games take time to come and they WILL come, especially as our tech advances.
More sport exposure will be huge. NBA Topshot already shows how much people want sports + NFTs. So, imagine other sports? If people can execute this correctly, it’s something else that will bring waves of hundreds of thousands of people into NFTs. Millions. Slowly but surely bringing in more people into NFTs.
And then real ticketing and etc. This is a use-case that I am interested in seeing as time passes. No idea how long it will take but NFTs for real-life. Particularly one that doesn’t even need a trading market for it, something with a one-time use case. Imagine the possibilities, and if you are, try to make those dreams a reality.
Anyways, I believe the best thing you can do now is to participate in the community in some sorts, at least interact with people involved. Build connections. This is the piece of advice I can give. Don’t be the guy that ignored Bitcoin at $10 and then be the guy to ignore NFTs at the start.