A significant downturn in the prices of nonfungible tokens (NFTs) shouldn’t be viewed as a sign of distress but rather as an indication that the technology is maturing, according to Web3 executives.
Decentraland Foundation’s executive director, Yemel Jardi, expressed this perspective, stating, “I wouldn’t say the NFT market has regressed. Instead, it’s maturing.”
Jardi’s remarks follow a September report from dappGambl, which analyzed more than 73,000 NFT collections and concluded that as much as 95% of the NFTs examined held no value, as prices, sales volume, and transactions had declined over the past year.
Jardi emphasized that markets follow cyclic patterns, and it’s natural for there to be periods of adjustment. He attributed the decline in NFT floor prices, in part, to “speculative trading” and advocated that the value of NFTs should be more closely tied to their utility.
Anjali Young, one of the co-founders of the tokenized community-management platform Collab.Land, is not taken aback by the prevailing anti-NFT sentiment.
“Any form of innovation, particularly one with financial consequences, cultural significance, and status, will inevitably face scrutiny during its downturns,” she stated.
Young posits that many projects encountered setbacks following the removal of mandated royalty fees on marketplaces like OpenSea in late August.
Nevertheless, Young maintains that NFTs are here to stay and anticipates their growing utilization in loyalty programs, rewards, advertising, and as a means of verifying authenticity in the forthcoming months.
Tama Churchouse, who serves as the Chief Operating Officer of Cumberland Labs, recently expressed the view that NFTs are not “obsolete.” He contended that recent developments in the NFT space indicate that there are still indications of vitality.
Despite the NFT market’s predominant focus on digital art, Jardi asserted that nonfungible tokens continue to be a significant instrument in the broader digital realm, enabling unique methods of denoting ownership of tangible assets to users.
Tama Churchouse, the Chief Operating Officer at Cumberland Labs, has recently expressed the viewpoint that NFTs are not in a state of obsolescence. He argues that recent developments within the NFT space reveal that there are still indications of vitality.
Despite the NFT market’s primary focus on digital art, Jardi emphasizes that nonfungible tokens continue to serve as a valuable tool in the wider digital domain. They provide innovative methods for indicating ownership of tangible assets to users.
Tama Churchouse, the Chief Operating Officer at Cumberland Labs, has recently expressed the viewpoint that NFTs are not in a state of obsolescence. He argues that recent developments within the NFT space reveal that there are still indications of vitality.
Despite the NFT market’s primary focus on digital art, Jardi emphasizes that nonfungible tokens continue to serve as a valuable tool in the wider digital domain. They provide innovative methods for indicating ownership of tangible assets to users.
Jardi envisions that governments and institutions will increasingly harness the potential of NFTs for a variety of purposes. On October 9th, the Chinese state-owned newspaper, China Daily, disclosed its plans to introduce a platform for trading digital collectibles.
The entertainment sector represents another vast market that the NFT industry can tap into, as per Scott Lawin, the CEO of the sports token platform Candy Digital. Lawin conveyed that in 2022, 24% of Major League Baseball fans, who entered stadiums with mobile tickets, redeemed their complimentary commemorative digital tickets provided by Candy, effectively turning them into memorabilia. “These are all real-time utilities of NFTs,” Lawin emphasized.
Regarding brands, Young pointed out that companies such as Adidas, Bud Light, Gucci, Prada, and others that have ventured into the NFT space have experienced a recent surge in active users on their Discord channels.
The current market capitalization of the NFT market is reported at $5 billion, according to data from Forbes Digital Assets. The largest collections are CryptoPunks and Bored Ape Yacht Club, owned by Yuga Labs, with market capitalizations of $710 million and $400 million, respectively.
