The entire blockchain industry is going through a rough time right now.
2022 was a dramatic year for the crypto industry and the rest of the world. As they used to say in novels, there was no sign of trouble. A couple of months before 2022, the crypto market’s capitalization exceeded almost $3 trillion. Bitcoin reached its historical price of $69,000. Experts forecasted a massive boost to the NFT, Defi, and blockchain gaming markets. Tokensales were buzzing, and investors were picking up good X’s.
But it didn’t work out the way everybody wanted it to. The year 2022 began with a new Covid-19 pandemic, and the world economy stagnated. Then a war broke out, the biggest war in Europe since World War II. The world was plunged into uncertainty and panic. The crypto industry also took its toll.
In November 2021, global blockchain market capitalization reached a record high of $3 trillion. And then in just two months fell below $2 trillion. Now its capitalization is “hovering” around $1 trillion. All branches of the blockchain industry were affected, but especially devastating was the fall of the NFT market sales.
The point is that NFT, which appeared in 2017, reached its peak of popularity around them by 2021, which led to a lot of speculation, and artificial overpricing of Non-Fungible Tokens, which had no real use in blockchain projects and crypto-economy
The hype peaked in the spring of 2021 when a painting titled Everydays — The First 5000 Days (Everyday: The First 5000 Days) was sold at Christie’s auction for a record $69.3 million.
“The bubble” busted in late 2021, when a rapid tightening of monetary policy deprived speculative assets of their investment flows. NFT trading volumes fell 97%, with Dune Analytics reporting a drop from $17 billion in January to $466 million in September. At the end of 2022, the NFT market is actually in a state of absolute stagnation.
At the moment, we can state that the NFT market, as it existed before, is rather dead than alive. And in order to bring it back to life and return NFTs back to their former popularity, it is necessary to fundamentally reshape the approach to the very essence of NFTs in crypto-projects.
That’s why we decided to use the concept of smart NFTs in our project, which will not be just an image with a line of code embedded in it.
The main difference is that smart NFTs grow in value due to the actions and progression of the player, and not because of a hype wave. Accordingly, their value is supported by the amount of time, effort, and, in certain cases, funds invested in their development.
Let’s use an example from Eladrea:
There is a multitude of NFTs in Eladrea’s FantasyVerse, all of which can be classified into three main groups: unique heroes, pieces of equipment, and players’ cities (Capitals).
- Heroes, as they earn experience, advance in levels, acquire new skills, and become more powerful. And it is up to the player to choose a direction for further hero development, preferred abilities to select, and their combination. In accordance with the hero’s level, his actual value in the game world increases as well. High-level NFT heroes have unique abilities, higher combat stats and can lead larger armies
- NFT items, in turn, are unique and legendary artifacts, the properties of each of which can be enhanced by investing a certain amount of resources, or tokens, or by fulfilling a number of additional conditions (such as discovering and assembling fragments of puzzles). Thus items, similar to heroes, grow in value in proportion to their utility value within the Fantasyverse.
- The player’s Capital and its level of development determine the number and quality of available units, their maximum level, and many other crucial gameplay elements. The capital is developed by constructing and upgrading various buildings and the main citadel. And all subsequent upgrades require more and more resources and, therefore, time to mine them. However, a high-level city owned by the player has a huge impact on the player’s power in general.
In addition, clever NFTs can visually improve with upgrades, save all statistics of battles and game activities, as well as the entire history of ownership by various players. And it all works in the whole FantasyVerse. We would like to clarify that Eladrea is the first of 5 upcoming projects, united by the same token and setting. And the key feature of our FantasyVerse will be the ability to transfer your NFTs with all the stats from one game to another, upgrading them even more.
This model excludes the potential for speculation and fake markups on NFTs prices. The value of a certain NFT in the Eladrea FantasyVerse is determined entirely by its value in the game world and the real benefits it provides to its owner.
What are your thoughts on the concept of smart NFTs and the future prospects of the NFT market in general? Share your opinion in the comments and don’t forget to subscribe to our social media:
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