Is there any hope for the NFT market?

30 Apr 2022

NonFungible researchers are confident in the NFT market's prospects shortly. In this respect, they point out that, contrary to popular belief, the ecosystem is on the road to recovery.

However, although the NFT scalping rate may be increasing, there are indicators that short-term gain hopefuls have given up on earning money out of the market altogether.

Many consumers who purchased NFTs last year may have deemed the risk prohibitive.

According to the survey, either the market was too unpredictable for them, or planned to earn a profit in a relatively short period.

In this new phase of the NFT market, collectible projects appear to be a natural fit since they account for about 80% of the total volume traded in the ecosystem, as the research points out.

Second, a handful of blockchain games have maintained a high level of sales and active digital wallets over the last year.

The remaining 8–25% of the business is split between NFT-based art, the metaverse, and various use cases.

In the previous three months, the Bored Ape Yacht Club initiative was able to earn 15% of the volume traded in the digital collectibles category. This is an industry norm.

"Be that as it may, the fact is that a growing number of players have preferred to sell quickly, for less. Should we view this drop in profits and rise in loss-making scalping as a bubble collapsing? Yes and no. This is a very predictable phenomenon of clearing the markets, ushering in a new era for NFT markets." - NonFungible report on the first quarter of 2022 of the NFT market.

Contrarily, the blockchain gaming environment showed trading losses in the first three months of the year. It lost $55 million in profit resale during this period, whereas digital collectibles produced $1.6 billion in profit volume in the first quarter of 2022.

To put it another way, the NonFungible team believes that the NFT market "slowdown" is helpful to the industry "to a certain degree." 

They recommend that you keep a close eye on the digital collectibles market and its dominant player, Bored Ape Yacht Club, which has a market cap of USD 1,200 million as of the first quarter of 2018.

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Yes I see future for the digital art NFT and NFTs that drive do-to-earn, being it play-to-earn or BULB's write-to-earn.
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