Are NFTs Poised to Rebound in 2024?
By all accounts, crypto is at a crossroads. There’s little disagreement among industry leaders that 2024 could be a significant year for the industry. But don’t panic, dear reader. Decrypt has spoken to analysts to get a glimpse of what’s ahead.
The Slump of NFTs
NFTs have been hit hard in the enduring bear market. The industry is down 93% since its peak in early 2022. Even the term “NFT” has become unfavorable in most circles. So, will NFTs be able to rebound if crypto markets recover?
The Resurgence of NFTs
Pedro Herrera, DappRadar’s head of research, believes that NFTs will experience a major resurgence in 2024. However, he isn’t referring to the profile picture (PFP) market. Herrera explains that people are starting to understand the real concept behind NFTs, which goes beyond collectibles.
Herrera points out that the technology underlying NFTs has matured and can now realize its full potential in sectors like tokenizing real-world assets, gaming, and the metaverse. He predicts that use cases beyond simple collectibles will continue to grow in 2024.
The Future of PFPs
While not all PFPs are dead, Herrera makes it clear that only a handful of blue-chip NFT collections have evolved into strong IP brands with value in both digital and physical realms. These collections have the potential to grow and develop as the NFT industry progresses.
However, Herrera believes that the majority of NFT collectibles from the previous bull run will likely miss the boat as the industry moves forward.
Hot Take: NFTs Pave the Way for a New Era
Despite the slump and uncertainty, there is hope for NFTs. As people grasp the true potential of NFTs beyond collectibles, the industry is set to rebound in 2024. With advancements in tokenizing real-world assets, gaming, and the metaverse, NFTs are entering a new era of innovation and growth. While some collections have managed to evolve into strong IP brands, most NFT collectibles from the past may not make a comeback. The future of NFTs lies in expanding their use cases and embracing the full potential of the technology.
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