Why are reports of the death of NFTs so exaggerated?
The narrative surrounding non-perishable tokens (NFTs) is evolving. Following the explosive growth and declining transaction volume, some members of the crypto community are questioning whether digital collections will remain viable.
Some written notes for NFTs, those dealing directly with the asset class, beg to differ. Experts in the Web3 space believe the market is maturing rather than dying. As the momentum stabilizes, NFTs will find their footing in more practical and sustainable applications.
Cointelegraph spoke to experts working in the blockchain space to get their thoughts on the current state of NFTs.
NFTs are in a correction cycle
Anoir Humou, founder and CEO of Sui-backed video engagement platform RECRD, believes that the idea that NFTs are dead is an “oversimplification” because every new technology goes through cycles of correction. Hume explained:
“Recent trends indicate the maturation of the market after the explosive growth of the past few years. We are moving into a phase where the focus is on sustainability, real-world services and the integration of broader technology ecosystems.”
The executive added that the proliferation of several new SocialFi and GameFi platforms is a step towards this. Houmou added that as NFTs become more purpose-driven, the community can expect greater institutional investment.
While NFT volumes are decreasing, Yale ReiSoleil, CEO and co-founder of NFT trading platform Untrading, believes that this is part of a natural market correction rather than death. ReiSoleil explained:
“NFT volumes are down significantly, but that doesn't necessarily mean they're dead. The market is correcting over time.”
O Tongsrinon, chief marketing officer of Altava Group, which connects luxury brands to Web3, echoed the sentiment. “As with any cycle, there is a peak, and if we look at the NFT space, the tokenization of real-world assets is growing healthily.
“This shows strong NFT sentiment, with Bitcoin-based NFTs recently registering a sales volume of $148 million and Bitcoin standing as one of the top three leading blockchain networks for NFT sales,” Thingsrinoon added.
Related: Mark Cuban wallet spotted dropping NFTs after 2 years of inactivity.
Execs believe that NFTs are not dead
When asked if NFTs are dead, Toshiuki Otsuka, founder of snap-to-earn platform SNPIT, strongly rejected the idea. Otsuka told Cointelegraph:
“Absolutely not. NFTs are moving beyond collectibles to digital ownership and utility tools. Market corrections are common and signal maturity.”
The executive believes that NFT technology has great potential in various industries. “As the technology matures, we expect more innovative and practical applications to emerge, driving wider adoption and utility,” Otsuka added.
Meanwhile, Houmou also argued that NFTs have passed their “infancy” and developers are starting to find new and more creative ways to use them.
“NFTs are becoming more than digital gathering and transforming industries, including a $250 billion creative economy by providing transparency, security and new revenue models,” Houmou explained.
Tongsrinon also argued that real-world asset (RWA) tokenization and proof of ownership are two of the “best use cases of NFTs.” The executive believes that adding real-world value will add realism and credibility to NFTs.
“The technology behind an NFT makes this real estate or government bond a perfect and immutable smart contract among many uses,” Thingsrinoon added.
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