NFTs are dead, the metaverse is dead, and cryptocurrencies are a scam!
(OpenSea’s trading volume and total revenue declined as of May 2022.)
A familiar refrain to those who have been in the cryptocurrency space for the last decade but a very real and new challenge for those who entered during the boom of NFTs and the buzzword of Web3. Since the January highs when the number of NFTs on the market eclipsed the number of websites on the internet, the volume of daily NFT sales has plummeted from just over $6 billion to only $850 million – a nearly 90% decline. For any new investment class, this would be an obvious cause of concern however as with cryptocurrencies’ ebbs and flows it is very likely we see an evolution emerge out of this lull. Yes, the era of 10,000 jpegs turning 10,000% returns on investment is over but many recent actions prove NFTs are here to stay.
Enter NFT 2.0
The second wave of NFTs will be a far cry from the wave of elite clubs like Bored Apes Yacht Club, or quick pixels like CryptoPunks. Instead, it will be driven by large brands utilizing NFTs to get close to the consumers and add layers to the consumer experience. Ticketing and VIP at events could become NFTs without users even knowing it. NFTs as a means of investment in projects and real-world uses will begin to thrive. Simply put the real-world technical use case of Non-fungible-tokens will emerge as the thing we associate when someone says NFT.
The technology behind NFTs continues to grow, as NFTs are likely to follow the path of email in the early 90s. For those of my audience who don’t remember there was a time when companies would hire specialists simply to code emails for them. Similarly today prominent projects with OpenSea, Consensys, and more seek to make NFTs as simple as sending an email today. Other companies are exploring the Internet of Things, Virtual pets, Education, unique one-of-one ownership, fractional art, smart contracts tied to legal documents, digital identity verification, and so much more.
This improved technology coupled with continuing consumer education on crypto and NFTs from major brands such as Amazon, Starbucks, FTX, and more will lead us into a new era of NFT adoption. Right now under 2% of the population in America owns an NFT, under 30% say they are familiar with them. Simply put the market is rife for education and adoption from an emerging technology to a staple of everyday life.
Going into the Future
The next stage of NFTs, or NFT 2.0, will demonstrate that they can revolutionize our approach to every vertical of life – from marketing to ticketing and everything in between. As major brands continue to foray into the space, NFTs will serve as the onramp for traditional web2 consumers to enter the web3 space. By interacting with cryptocurrencies, utilizing decentralized autonomous organizations, and ultimately the playing and building in the metaverse; brands will continue to evolve and upgrade their presence in the space while driving consumer adoption and education. Ultimately NFTs will become a part of every day life on the internet, daily life with tickets and IDs, and so many more untapped technological opportunities.
