Recent statistics indicate that since May 2022, the NFT market has been performing well. The industry is healing after the cryptocurrency downturn. However, the Terra-LUNA collapse marked the end of the crypto upward trend in May 2022. That led to a decline in NFT trades and sales.
This year the inauguration of Blur has become the main subject of discussion in the NFT market. Its growth and development have been disputed, with some saying it is a fraudulent engagement meant to steal from unsuspecting people.
CoinGecko reported a significant increase in phony trading in February which saw an upsurge of 126% from the previous month’s $250 million. A high percentage of fictitious trading accounted for 23.4% of their adjusted trading volume.
Blur’s manipulative trading triplicated the month after the airdrop of $BLUR. DappRadar reports that the liquidation of Silicon Valley Bank greatly affected the prices of NFT. However, the fast regain of the NFTs showed its elasticity.
Co-Founder Rarible and Alex Salnikov, the Chief Strategy Officer, foresee many challenges for the firm in 2023. Unfortunately, these harrowing moments have not assisted NFTs’ humiliation, hindering progress. Salnikov told BelnCrypto that many people are doubtful of NTFs.
Therefore, many big companies avoid using the term “NFT” and are using alternative phrases like digital collectible or digital asset token to be accepted by the multitudes. Samples of Non-Fungible Tokens in the form of digital collectibles are Dapper Labs, Collection Avatars, Reddits, NBA Top Shots, Candy Digital’s collaborations with MLB, and Odd Things.
He added that when there was a sustained and significant upward trend in the prices, big companies wanted to try out NFTs. Recently Meta stopped engaging in Web3 ventures. Web3 missions are enormous ventures that require massive capital investment to implement.
Amazon has shown interest in NFTs. However, there are better decisions than that because other big firms are moving to AI and other income-generating projects. In addition, centralized marketplace completion has brought fights for market share, significantly affecting the NFT market.
Dealers have created commotion and confusion in the industry by treating NFTs like digital assets. But, according to the co-founder and CEO of Amberfi, a Web3 venture, J.D Lasica, the industry is growing and expanding. The overall outlook is positive despite some minor challenges being experienced.
Lasica believes the market is progressing very first and is optimistic about t the future of the industry. The NFT market will likely experience gradual but steady growth in a year for two reasons. First, NFTs can be applied in many industries like fashion, banking, retail, and real estate.
That brings up a likelihood of NFTs being used as distinctive digital assets. Second, as more people become tech-savvy, there will be an increase in the demand for good digital items to complement their online presence. Inventors and improvisers work hard to cater to this growing demand by making and trading NFTs.