Indeed, there has been a massive decline in sales and asset prices across the global NFT sector. Still, it would be a reach to conclude that NFTs have fizzled out of the tech scene. As the NFT hype is declining, There have been mixed opinions about the sustainability of the NFT market, and whether it is only a fad or a sustainable long-term investment are hot topics.
NFTs, according to some, are a bubble set to burst. In contrast, others think they’re here to stay and will completely change how we think about authenticity and ownership in the digital age.
However, the question on most people’s minds remains; is the NFT hype over? This article will explore the recent position of the NFT market and highlights what’s next for digital assets and meta in 2024.
How The Volatile Market is Affecting NFT Hype
Meta entered the NFT market in May 2022, indicating the company’s intention to expand its Web3 presence significantly. Creators could make their digital collectibles on Instagram and sell them to fans on and off the site. In addition, users helped their favorite creators by purchasing their digital collectibles, such as films, directly from Instagram and by adding support for the Phantom wallet, Solana blockchain, and other blockchains and wallets.
However, Mera announced that it would stop supporting digital collectibles ten months later, stating that the initiative would be “winding down.” In January, the world’s largest NFT market, OpenSea, saw a record-breaking $4.87 billion in NFT trade volume. The buzz surrounding NFTs at the time was at an all-time high because of the support of Bored Ape Yacht Club (BAYC) NFTs and other NFT projects from well-known celebrities like Eminem and Jimmy Falon.
A token commemorating Jack Dorsey’s first tweet sold for $2.9 million at its peak. The primary token for the play-to-earn video game Axie Infinity sold for $9.75 billion. To mention a few, Coca-Cola earned over $575,000 from selling a jacket designed for usage in the metaverse. Since then, the situation has dramatically changed, with companies like Meta, Disney and Microsoft shutting down their NFT projects.
This was mainly due to the general decline in the cryptocurrency market, which saw significant double-digit losses in Bitcoin, Ethereum, and most other digital assets since their peak in November 2021. NFTs were particularly severely hit because many non-crypto users lost faith in NFTs and needed to understand the rationale behind the high values that NFTs and specific other projects attained.
What’s next for NFT in 2024?
NFT activity increased significantly, going from $946 million in January to $2 billion in February, showing a potential for growth in the future. However, we cannot dispute that the NFT hype has significantly dropped compared to its early prominence in late 2021 and early 2022. Ultimately, as the market develops, additional use cases may appear that benefit from the unique qualities of NFTs.
