Are NFTs dead in 2022?
With all the mess around the NFT market, how can you navigate your way to success? This series will help you better understand the market and make good decisions for buying and selling NFTs.
What are NFTs? Non-fungible tokens are digital items that can be purchased, traded, sold or collected using blockchain technology. Sort of like rare Pokémon cards, they act as digital commodities for certain communities.
2022 saw a New-Year-high for NFT collections, but this soon stumbled. Nansen reported that 1/3 collections minted in 2022 have seen little to no trading activity. These are called “dead collections”. They also reported that the number of people participating in the market has increased exponentially over time. In 2021, there were only 500 unique NFT minters, whereas February 2022 saw this rise to ~1.6 million new minters on the block. That’s a lot of competition!
However, it is also important to look at the NFT marketplace through the lens of reality. The war between Russia and Ukraine, in addition to the Covid-19 pandemic, has pushed inflation to record highs and been a huge it to investor’s wallets.
With this in mind, it shouldn’t be a shock that investors are less willing to take risks. They want to hold onto their money during uncertain times. With NFTs still being fairly new to the table, its no wonder they don’t appear like a safe investment right now.
However, these dark tides will pass. The investing turmoil will end. It always does! That doesn’t mean the world has to stop turning until the market corrects itself. Innovators and developers are still working to give the marketplace purpose. The marketplace is evolving and everything is dirt cheap due to high supply. There has never been a better time to work on your own NFT collection or portfolio.
“Only those who play, win” — Cherneva, I.
And NFTs are more than just a fad. Those that serve a purpose to investors, either in the real world or the metaverse, are the ones that succeed. Latest advancements have allowed musicians to mint their music, artists to sell their drawings and game developers to fund their ideas. Its an exciting time for investors to be part of a unique community and support creators without any middlemen.
Some people argue the “craze” of NFTs is over. People understand NFTs better now and are less likely to make millions from clicking a button. This is also because creating NFTs is no longer a unique celebration of an artist or project. You could hire a fiver artist for $100 and create a boring project in less than a week! This is why do many projects fail. If you want to succeed in this new market, don’t do this.
However, it is very clear this is just the beginning of NFTs.
So, are NFTs dead in 2022? Absolutely not! We are just getting started.
Weather you love them or hate them, they are here to stay. If you want to be a part of this movement, gravitate your work or portfolio to NFTs that truly provide value to their following.
What value can NFTs provide?
NFTs are more than just PNGs — they’re statement pieces, proof of contribution, support networks, access passes and discount codes. They are great for investors who want to get involved in a project or community.
NFTs help to build community — they give people a chance to meet, chat and trade. Think of all the amazing things people can do when they band together! For example, Biker Babes NFT will be donating 25% of profits to Blood Bikers, a wonderful charity that supports hospitals around the UK. And this is just the start! Think of what this community could do with more support over time.
NFTs help small time artists — NFTs help indie game developers, architects, musicians, artists and designers all over the globe. This means people can get their work noticed despite any geographical boundaries. That’s why we partner up with independent artists around the globe to create beautiful projects.
There has been millions sunk into the NFT space — Lots of people are very committed to the NFT space and believe it has a lot of potential. They have invested time and money because they believe in it. This means people will fight for the marketplace’s success. NFTs aren’t going anywhere if they can help it.
And this is just the beginning of NFT evolution. Companies such as GameStop are exploring the possibility of NFT dividends in stocks. Singers are beginning to mint their songs as NFTs and young artists are using the marketplace to build their career. There are also hopes to minting NFT real estate, clothing and games the metaverse, with Meta (former Facebook), have a huge interest in.
You are early to the world of NFTs because the market has not reached its full potential, its just waiting for the right people to join in. If you remain focused and keep yourself educated on the NFT space, you could be ready for the next wave of success.
Are you interested in building your own NFT collection but unsure where to start? Don’t know how to get your collection noticed and scared of flopping? Follow our blog to keep updated. We post loads of helpful information and tips from our own research and experience. Come along for the journey!
If you found this post interesting, please leave a comment to share your thoughts. We love to here new ideas and information on NFT technology so feel free to start a conversation with us!
We launching our own exciting NFT project where we will run a community project, donate to the beloved charity NABB and give out fun prizes, including a classic motorcycle! Join the ride by saying hello in our Discord server. Follow us on Medium, Twitter, Instagram or YouTube to keep updated on the project.
