Are NFTs are stiil alive and will NFT.NYC be back in 2025? | Opinion

As a researcher with a background in blockchain technology and experience attending various industry events, I find this year’s NFT.NYC to be a significant shift from previous years. The quieter atmosphere and reduced investment in activations and booths might raise concerns about the health of the NFT market. However, upon closer inspection, it appears that the maturation of NFTs is driving this change for the better.

At this year’s NFT.NYC, which has been taking place annually since 2019, there was a noticeable difference. Previously, the conference brought together NFT enthusiasts and industry professionals to discuss the latest trends and groundbreaking innovations in the field. The primary objective of the event was to highlight the significant impacts and potential of NFTs, with a clear goal of promoting mainstream acceptance. Consequently, the degree of enthusiasm and financial commitment towards the gathering often served as an indicator of the overall health of the NFT market—this year’s event saw a subdued turnout.

As a crypto investor, I noticed a significant decrease in spending on activations and booths at the recent event, resulting in a more subdued show floor experience. Compared to the 2023 event, which was already quieter than the previous year’s edition at the 2022 event, the atmosphere felt flat. However, there were still some intriguing projects on display. Yet, the buzz and engaging conversations I’ve had at other events like Token2049 Dubai and GDC were noticeably absent.

Are NFTs dead?

In 2021, NFT.NYC stood out as an awe-inspiring event in the NFT sphere, earning nicknames like “Crypto Coachella” and “Super Bowl.” The buzz and fervor surrounding it reached every corner of the globe, driven by high-profile celebrity endorsements, flamboyant marketing strategies, and jaw-dropping sales of multi-million dollar digital art pieces displayed on Times Square billboards. This period mirrored the vibrancy of the market as trading volumes soared to an astounding $17.6 billion. However, it also embodied a time marked by hype and profit-driven speculation that left many unsuspecting users with financial losses due to unscrupulous actors and shallow projects.

Instead of asking if NFTs are dying due to this shift, consider that this year’s event signifies growth and improvement within the crypto industry for NFTs. No longer viewed as a passing trend, NFTs have integrated into various sectors of the crypto world, such as gaming, finance, real estate, and more. As a result, NFT-centric events are no longer necessary.

Shifting tides

During the crypto winter of 2022, the NFT market experienced a significant downturn. Initially known for digital collectibles, the term “NFT” became synonymous with this use case in people’s minds. However, their association with pricey digital images of monkeys and overhyped JPEGs tarnished the industry’s reputation. With speculation no longer fueling their popularity, digital collectibles have lost some of their allure, and the excitement surrounding collectible NFTs has waned.

Based on data from Statista, the sales volume of NFTs in the art sector dropped by more than 30% from April 2021 to April 2024. The market underwent a substantial decrease in October 2023, leading to a drastic 83% reduction in floor prices from their previous peak.

NFT market maturation

“NFTs’ original purpose has evolved, and it’s important that we refocus the discussion around their real-world applications beyond being just collectibles.”

As a financial analyst, I’m particularly enthused by the advancement of tokenized Real-World Assets (RWAs). By December 2023, the Total Value Locked (TVL) in this sector had surpassed an impressive $6.5 billion mark. Notably, the financial industry is spearheading this adoption with their tokenization of various financial instruments. Major players such as Blackrock and Franklin Templeton have taken the lead this year by implementing this innovative approach.

Enthusiasm surrounds the possibility of asset tokenization as a means to symbolically represent various ownership assets such as real estate, artwork, stocks, and more. Consider the breakdown of a real estate asset into units represented by tokens. Now, fractional ownership of the property becomes a reality. For example, if 1,000 tokens correspond to a 1% share each, investors can trade these tokens on blockchain marketplaces. This results in heightened liquidity and simplified processes for transferring ownership.

In the realm of gaming, NFTs, or Non-Fungible Tokens, have revolutionized the concept of digital ownership. Players can now truly possess virtual goods such as characters and weapons, which they can buy, sell, and trade in bustling marketplaces. The value of these assets becomes tangible, especially when it comes to “dynamic” NFTs that allow upgrades based on in-game usage. Additionally, the ability to use these items across different platforms adds to the allure, making transfers between games a smooth experience (despite the ongoing efforts to address related challenges).

The evolution of NFTs from excitement and experimentation to becoming an integral part of the cryptocurrency sector signifies their maturation. This transition offers significant benefits, including utilizing current frameworks, enhancing capacity, and promoting partnerships and creativity. As NFTs expand in variety and utility, their place within the crypto world will become increasingly established. The future of NFTs is bright with potential, as their persistent growth and assimilation set the foundation for a flourishing community.

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2024-07-03 16:35