Despite the prevailing sentiment that Non-Fungible Tokens (NFTs) are dead due to the ongoing “NFT Winter,” there are glimmers of revival within the sector.
The NFT market, although sluggish, shows signs of life. The report states that while NFT trading volumes have drastically reduced, from around $1 billion a week in mid-2021 to early-2022, to sub-$100 million today, there is evidence of promising activity in the sector.
The barrier to entry for NFT creation is low, and many have attempted to strike it rich with their own NFT collections. However, the influx of supply has not always equated to quality, contributing to the current market dip.
Despite this, there are positive indications. For instance, PayPal filed a patent application in March for an NFT purchase-and-transfer system. Additionally, NFT projects like Pudgy Penguins are expanding into physical toys, selling in Amazon and Walmart stores across the U.S.
Moreover, collaborations between NFT creators and mainstream brands are on the rise. Doodles has partnered with Crocs, and Gary Vee’s Veefriends has teamed up with Reebok.
Music artists are also exploring NFTs, with Harry Styles offering future NFT rewards to fans via a self-custodial digital wallet app, and Justin Bieber turning a song into an NFT with royalty streams for holders.
As the market transitions from the NFT Winter, the report anticipates the emergence of more sophisticated and commercially viable NFT projects, enriching the ecosystem in new and meaningful ways.
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