Will NFT Die in 2023?

NFTs and crypto markets have experienced fantastic growth in recent years, but many people worry this craze is going to die in 2023. Considering non-fungible tokens are relatively new and unpredictable, the future is still not entirely clear.

But, what are the possible turning points for non-fungible tokens, and is this still a good investment you should make?

We’re going to discover the trends, possible concerns, and even the future of NFT projects in this article. So, if you want to learn everything about the rare NFTs and make the best decision about your future investments, keep on reading.
showing chart dip

NFT Bear Market

The NFT market and cryptocurrencies, in general, are going through a rough patch often called the “Bear Market”. This might sound and look concerning for many inexperienced crypto enthusiasts but in reality, this is just a common phase that comes naturally in all marketplaces.

NFTs took over the crypto universe in 2021 and investors flooded the market with amazing offers on one hand, and creators and artists took the earning opportunity on the other. That often leads to an oversaturated market, low-quality projects, and falling prices.

In addition, some economic world problems influence the stock market and investors are more likely to back out and withdraw money.

All of these factors contribute to volatile and degrading NFT markets, but does that mean it’s the end of the non-fungible tokens or it’s just a turning point? While there is no certain way to know for sure, some stats show that NFTs are here to stay, such as:

  • More well-known companies and artists backing up and accepting NFTs
  • Plans and new ideas to incorporate NFTs in daily lives
  • Continuation of sales in major NFT markets
  • New and exiting NFT projects

NFTs might appear like the one-time hype but with so much money and investors who are still in the “game”, the future looks promising.

Let’s dive a bit deeper to fully understand the problems and possible solutions NFTs have.
Price-for-NFT

NFT Concerns

NFTs or non-fungible tokens are new and very popular digital assets that changed the way we look at art and crypto. In the beginning, this new sensation gathered a lot of traction, but the system is far from perfect.

Here are a couple of things that might bring NFTs to their end:

High Gas Fees

NFTs are notoriously expensive to mint, and many marketplaces and NFT platforms have high gas fees for creators and buyers of the tokens.

This is due to all the smart contracts that need to be stored on the blockchain and relatively new technology that needs a lot of liquidity to be fully operational. Sometimes, NFT creators and developers back out of high-quality projects just because the gas fees are too high.

On a positive note, many marketplaces are finding different ways to lower or completely eliminate gas fees in order to maintain the market and allow new projects to be launched. So, minting fees are high but there is hope and progress in that direction.

Lack of Quality

As mentioned before, the NFT market is becoming oversaturated with low-quality art and people who are only looking to make a quick buck. This leads to an unreliable and even more volatile market that could bring down the entire NFT universe.

Creators who are dedicated can easily lose interest if there are too many worthless NFT projects, and this is one of the major problems the market can face in the future.

On the other hand, as the NFT concept and market mature the false projects and low-quality work will subside and balance should be restored quickly.

Investments

Investors are crucial for every marketplace including NFTs. Without enough investments and money, there will be no point in making any projects and plans for the future.

Low prices and the bear market tend to weed out inexperienced investors, but those who are experienced in crypto and recognize the natural flow of the stock market will always come back with new investments.
Typing machine with NFT word on paper

Future of NFT Projects

Now that we are familiar with the possible downfalls of NFT markets it’s also a good idea to take a closer look at possible positive outcomes.

There are still so many high-quality artists, brands and companies involved and this critical moment can be seen as nothing more than an opportunity to develop in different directions.

Here are a few future options for NFTs:

Metaverse

2021 and 2022 brought us new and exciting developments in the NFT world known as the metaverse.

Metaverse can be seen as a unique virtual reality on the blockchain that many NFT projects now support and develop. One of the most successful metaverses are SandBox and Decentraland but many others are joining this movement and making their own creative virtual worlds full of possibilities.

While virtual realities are not new, they are always one of the most engaging ways to attract people and investors who would like to explore different universes from the comfort of their homes.

With NFTs and blockchain, the possibilities are endless, and you can now own land, have avatars, and even create different objects in the game all in the form of non-fungible tokens. Many believe that this “play to earn” mindset is the future of NFTs.

Utility

Different NFT projects are now focusing more on the utility of the token, not just the art. This perfectly combines with the metaverses we mentioned earlier and promises a brighter future for many NFTs.

Every piece of in-game gear and artifact is represented as a non-fungible token (NFT) on a blockchain. And that’s a critical part of the game’s economic concept. Every one of these NFTs provides some sort of advantage to the player’s character, making them stronger or more successful in the game, and aiding their financial status.

Consequently, the more a given NFT accomplishes for a character, the more sought after it is on the in-game trading block

Metaverse land plots are a common feature in these kinds of games, allowing players to construct various structures and NFTs of their own design. NFTs are also used to represent these land parcels, which may be purchased and sold. To put it another way, the fact that they allow players to make more in-game cash is what gives rise to the market economy.

Entertainment

NFTs became so popular and innovative as a way to manage digital assets that many artists in the entertainment industry saw an opportunity to join and make considerable profits.

There are many events and performances in metaverses that celebrities create, and some bands like Kings of Leon became the first artists to release an entire album as NFT.

The non-fungible token is not limited only to art, so there is a lot of potential there for various performers. This is a very optimistic view of the future for NFTs where they can be used as so much more than simple profile photos on social media like the famous BAYC.
Showing chart on mobile

Will NFT Die Out in 2023?

While it’s obvious that NFTs are going through a rough phase this is far from the end of non-fungible tokens. As the market matures and new investment opportunities evolve the future of NFTs looks promising.

There are many new and exciting projects, and metaverses developed that will bring the NFT to a utility-oriented marketplace and sustain the growth of this amazing discovery.

Stay in the Loop

Stay in the loop with blockchain Witcher and get the lastest updates.

Latest stories

You might also like...