In 2021, NFTs began to shake up the art world, the tech world, and dozens of other subcultures. The following year was a rollercoaster: artists and collectors have made fortunes off NFTs, with many significant brands launching NFT and Metaverse projects.
However, the market started to falter in late 2022. A decline in demand for lower-tier offerings, fears of an economic downturn, unchecked inflation, and increasing interest rates have taken a heavy toll on this market.
Many in the NFT Space feel the pinch of this crypto winter, but many haven’t lost faith in the space and see a brighter horizon where the NFT bull run reawakens.
Let’s take a look at what some experts are saying.
The Four Pillars of the Next NFT Bull Run
On May 1st, Kermit took to Twitter to outline the potential catalysts for a new non-fungible token market bull run. As an NFT growth consultant and data analyst at Origins NFT, Kermit holds an optimistic view that NFTs will regain momentum before the year ends.
Origins NFT is a community-centric organization specializing in data-driven NFT software supported by cutting-edge infrastructure.
In their analysis, Kermit highlights four key factors that could shape the trajectory of the next NFT bull run.
The Evolving Landscape of Content
Content in the NFT space is undergoing a gradual transformation. Moving away from niche audiences, brands are now focusing on capturing the attention of mainstream consumers with the goal of reaching millions. This shift is expected to give rise to prominent media brands on platforms such as Instagram.
Recently, several NFT projects have been gaining traction on Instagram, extending their presence beyond Twitter. A notable example is Pudgy Penguins, who garnered nearly one million ‘likes’ on a single post in April, showcasing the potential for NFTs to make a splash among the masses.
Embracing Digital Ownership
Kermit posits that the term “NFT” may be perceived as overly technical and inaccessible. As a result, the concept of “Digital Ownership” is likely to resonate more with the general public. This shift in perception is facilitated by major players like Reddit, who are introducing digital collectibles at affordable price points to a broader audience.
With the release of six free collections, Reddit aims to attract one million new users to the NFT realm. This development prompts Kermit to question who ultimately defines Web3: a niche group of tech enthusiasts trading digital art or millions of mainstream consumers purchasing virtual avatars?
The Maturation of the Market
As the NFT market evolves, several projects initiated in the last one to two years are beginning to scale and expand their offerings. Yuga Labs is poised to emerge as a significant player in the gaming industry. There’s no doubt they are on their way after they recently secured an ex-Epic Games executive as their new CTO.
Likewise, Pudgy Penguins is expected to amass millions of fans, further solidifying its presence in the NFT landscape. Meanwhile, Memeland is gearing up to launch its social-fi platform, contributing to the overall maturation of the market as these projects continue to innovate and grow.
The Power of Gaming in NFT Adoption
Gaming’s inclusion on the list is no surprise, given its potential to be the most significant catalyst for NFT adoption. NFTs face challenges in achieving a suitable product-market fit due to their speculative nature.
However, as gaming begins to incorporate blockchain technology, millions of users are expected to be exposed to the world of NFTs. With several highly anticipated Web3 games slated for release in 2023, the gaming industry is poised to put this theory to the test and potentially revolutionize NFT adoption.
Bitcoin: A Sign of Hope?
Despite the challenging times for the cryptocurrency market, Standard Charter recently expressed optimism that the crypto winter is nearing its end, forecasting Bitcoin to reach $100,000 by 2024.
As reported by Reuters, Standard Charter suggests that Bitcoin could benefit from a combination of factors, including the recent upheaval in the banking sector, stabilization of risk assets due to the U.S. Federal Reserve concluding its rate-hiking cycle, and enhanced profitability of crypto mining.
Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, shared these insights in a note, providing hope to the crypto community in these uncertain times.
Furthermore, crypto analyst Charles Edwards, who founded Capriole Investments, recently examined Bitcoin’s chart and discovered a promising pattern taking shape.
The NFT market has undoubtedly faced its fair share of challenges. Still, the unwavering faith of enthusiasts and experts alike serves as a testament to the potential for a brighter future. Kudos to Kermit for their insights into some key factors. The evolving landscape of content, the shift towards digital ownership, the maturation of the market, and the growing influence of gaming in NFT adoption could hold the keys to unlocking the market’s true potential.
As we venture into the future, the NFT market is poised to continue evolving and capturing the imagination of millions. Although the current rough patch may be a setback, the resilience, adaptability, and innovation within the space inspire confidence that the NFT bull run will awaken and propel the market to new heights once again.