The discussion surrounding non-fungible tokens (NFTs) is experiencing a shift. After a phase of rapid expansion followed by a decrease in trading activity, some individuals in the cryptocurrency community are raising doubts about the sustainability of digital collectibles.
While some are writing off NFTs, those intimately involved in this asset class hold a different view. Experts within the Web3 domain believe that rather than fading away, the market for NFTs is maturing. As the initial excitement subsides, NFTs are finding practical and enduring applications.
Cointelegraph reached out to industry professionals operating in the blockchain sphere to gather their insights on the current status of NFTs.
NFTs are currently undergoing a correction phase. Anoir Houmou, the founder and CEO of RECRD, a video engagement platform backed by Sui, dismisses the notion that NFTs are obsolete as an oversimplification, emphasizing that every emerging technology undergoes corrective cycles. Houmou highlighted:
Rising numbers of new SocialFi and GameFi platforms indicate progress in this direction. Houmou suggested that the community can anticipate increased institutional involvement as NFTs become more purpose-driven.
Although NFT volumes have decreased, Yale ReiSoleil, the CEO and co-founder of Untrading, an NFT trading platform, views this as a natural market correction rather than a fatal blow. ReiSoleil commented:
Oh Thongsrinoon, the chief marketing officer at Altava Group, a company linking luxury brands to Web3, shared similar views. He noted, “Just like any cycle, there are peaks. If we observe the NFT space, the tokenization of real-world assets is steadily expanding.”
Thongsrinoon added, “With recent sales figures of $148 million for Bitcoin-based NFTs and Bitcoin ranking among the top three blockchain networks for NFT transactions, the strong sentiment towards NFTs is evident.”
In response to the question of whether NFTs are obsolete, Toshiuki Otsuka, the founder of SNPIT, a snap-to-earn platform, unequivocally dismissed this assertion. Otsuka mentioned:
The executive expressed optimism about the transformative potential of NFT technology across various sectors. Otsuka added, “As the technology evolves, we can anticipate the emergence of more innovative and practical applications, fostering wider adoption and utility.”
Houmou argued that NFTs have surpassed their infancy stage and that developers are exploring novel and creative ways to utilize them.
“NFTs are no longer confined to digital collectibles; they are reshaping industries such as the $250 billion creator economy by offering transparency, security, and novel revenue models,” Houmou explained.
Thongsrinoon emphasized that tokenization of real-world assets (RWA) and proof of ownership are the prime use cases for NFTs. The executive believes that imbuing NFTs with real-world value enhances their tangibility and trust.
“The underlying technology of NFTs makes it an ideal and immutable smart contract, whether applied to real estate or government bonds, among numerous potential applications,” Thongsrinoon concluded.
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