NFTs have been shaking up the art world, tech world, and other subcultures since 2021. In 2022, artists and collectors made fortunes off NFTs, with significant brands launching NFT and Metaverse projects. However, the market started to falter towards the end of the year, and many in the NFT space feel the pinch of this crypto winter. Nonetheless, experts believe that the NFT bull run will reawaken before the year ends.
Kermit, an NFT growth consultant and data analyst at Origins NFT, has an optimistic view that NFTs will regain momentum. In their analysis, Kermit highlights four key factors that could shape the trajectory of the next NFT bull run.
Firstly, the content in the NFT space is undergoing a gradual transformation, moving away from niche audiences to capturing the attention of mainstream consumers with the goal of reaching millions. This shift is expected to give rise to prominent media brands on platforms such as Instagram. NFT projects have been gaining traction on Instagram, extending their presence beyond Twitter.
Secondly, Kermit posits that the term “NFT” may be perceived as overly technical and inaccessible. As a result, the concept of “Digital Ownership” is likely to resonate more with the general public. This shift in perception is facilitated by major players like Reddit, who are introducing digital collectibles at affordable price points to a broader audience.
Thirdly, several projects initiated in the last one to two years are beginning to scale and expand their offerings. Yuga Labs and Pudgy Penguins are expected to emerge as significant players in the gaming industry. As gaming begins to incorporate blockchain technology, millions of users are expected to be exposed to the world of NFTs. With several highly anticipated Web3 games slated for release in 2023, the gaming industry is poised to revolutionize NFT adoption.
Fourthly, Bitcoin could benefit from a combination of factors, including the recent upheaval in the banking sector, stabilization of risk assets due to the U.S. Federal Reserve concluding its rate-hiking cycle, and enhanced profitability of crypto mining. Experts believe that the crypto winter is nearing its end, forecasting Bitcoin to reach $100,000 by 2024.
The Future of NFTs
The NFT market has undoubtedly faced its fair share of challenges. Still, the unwavering faith of enthusiasts and experts alike serves as a testament to the potential for a brighter future. As we venture into the future, the NFT market is poised to continue evolving and capturing the imagination of millions. Although the current rough patch may be a setback, the resilience, adaptability, and innovation within the space inspire confidence that the NFT bull run will awaken and propel the market to new heights once again.