Are NFTs Still a Worthy Investment in 2024?

2021 was undoubtedly the year of NFTs. The interest in NFTs exploded, and virtually everyone wanted to jump on the wave. The biggest celebrities and most respected investors were in the news for copping their pieces of the groundbreaking tokens. 

However, this wave has largely died down. The demand for NFTs has reduced significantly, and these tokens are no longer a hot topic. If you are still interested in NFTs, you might be wondering if they are still a worthy investment in 2024. This article provides answers. 

Are NFTs Still a Worthy Investment?

In the heat of the 2021 wave, NFTs were in high demand. The popularity of NFTs further exploded when ‘The Merge’ NFT was sold for $91.8 million and Beeple’s ‘Everydays: The First 5000 Days’ sold for $69.3 million. Celebrities like Justin Bieber and Madonna also tapped into the NFT wave by purchasing NFTs. 

However, this wave significantly died down in 2022, and many NFTs lost value. One of the most shocking value drops was with Jack Dorsey’s NFT tweet. The tweet sold for $2.9 million in 2021, but its value reportedly dropped to less than $4 in 2023. 

There are a slew of other popular NFTs that have dropped in price. However, it must be noted that this does not indicate that NFTs are completely dead, or that they are no longer a worthy investment in 2024. Here are some reasons why NFTs might still be a worthy investment in 2024:

NFTs Have Multiple Use Cases

NFTs are popularly known as digital assets that represent art pieces. However, NFTs are not just tokens that artists create and sell. For instance, the NFT gaming market remains active. NFT play-to-earn games like Axie Infinity have maintained a sizeable number of daily users.

NFTs can also be applied to multiple industries as proof of authenticity. Many fashion companies have been intentional about reducing the production of counterfeits. NFTs can help tackle this problem by providing an immutable record of a product’s ownership history. 

As more enterprises adopt these use cases, the demand for NFTs will likely increase. 

Rising Web3 Adoption

There are estimations that 2024 will be significant for web3 gaming. Unlike traditional games, web3 games are digital games that are deployed on the blockchain. NFTs can power these games by providing in-game assets. 

If this convergence of NFTs and Web3 continues, the NFT market will likely gain more traction. Of course, investors’ interest often translates to higher value. If this occurs, your NFT investment will likely be profitable. 

NFT Companies Are Adapting to the New Normal

Many NFT companies have realized that the NFT buzz has largely reduced, and they are adapting accordingly. A case in point is Pudgy Penguins. Pudgy Penguins is an NFT collection featuring adorable little penguins. However, the brand recently moved to physical stores. 

Last year, Pudgy Penguins released its Pudgy Toys Collection which debuted in over 2,000 Walmart stores. Each toy reportedly comes with free access to ‘Pudgy World’, where owners can claim unique traits for the digital Pudgy character. 

With these marketing strategies, NFT companies will likely be able to increase their earnings and boost the popularity of NFTs.

Conclusion 

Ultimately, it is important to note that research is an investment best practice that should always be adopted. It is advisable to conduct research on the current and future value of an NFT before deciding to purchase it.