NFT (Non-Fungible Digital Token) The NFT boom, centered on digital data such as art, has continued around the world for the past few years, but it seems that the boom is starting to fade. It is said that the NFT bubble is on the verge of bursting, but is this actually true?
What are NFTs?
NFT is an abbreviation for “Non-Fungible Token”. It has the meaning of a non-fungible token, anyone can sell it, and it can be bought and sold without any complicated knowledge about blockchain. When NFT is resold, the reward to the author will be included. In recent years, interest in NFTs has increased, especially among young people, because it leads to long-term profits for creators.
irreplaceability
A feature of NFTs is that it is impossible to create a copy that is exactly the same as the original. Until now, no one could distinguish between a copy and an original by looking at digital data. However, blockchain technology has made it possible to clearly distinguish between originals and copies.
Records cannot be falsified
NFTs record information such as creators and owners, and even if you try to tamper with the information, you have to attack multiple places, making it virtually impossible. And this will make it possible to be the one and only existence, so there will be a reward for the author.
digital assets
Since the owner history can no longer be tampered with, it will be given value as an asset. Perhaps from now on, the NFT market as a business may be bustling. In other words, NFT will be like a royalty business like novel writers and music writers.
Will the NFT bubble burst?
Recently, there has been a lot of news mentioning the possibility that NFT services and technology, which is a new trend in the Japanese industry, could burst into a bubble due to the rise of AI. NFTs still have a strong impression of speculation, but what exactly is this based on? We have summarized the claims made in the current web media and news, so if you are an artist, please use this as a reference.
Backlash from rapid market expansion
The NFT market suddenly expanded explosively around 2020. The global NFT transaction value has tripled in one year, from $24.5 million in 2019 to $82.5 million in 2020. and $17.6 billion in 2021. It was said that if this trend continued, it would become a ridiculous market.
| 2019 | $24.5 million |
| 2020 | $82.5 million |
| 2021 | $17.69 billion |
However, NFT trading volume has declined since mid-2021. It is said that the NFT bubble burst due to the rapid expansion of NFT.
away from NFT
The latest NFT projects are built on the ETH (Ethereum) blockchain technology, so NFTs are often valued using ETH. It is believed that the decrease in the price of ETH has led to fewer people investing in NFTs. As a result, it seems that some people are unable to make a living because even if they issue tokens through NFT work, they are unable to sell them.
NFT fraud
The NFT market has become very attractive, but on the other hand, a large number of scammers have also entered. NFTs have a storage place called a wallet, which manages the purchased NFTs, but there have been many incidents where these were hacked. The reality is that more and more users are wary of this.
price spikes and crashes
The NFT market has grown at an abnormal speed, causing an abnormal price increase. This breaks the balance between supply and demand. However, this abnormal price increase was temporary, and there was a situation where the price plummeted and the trading volume decreased. This has resulted in excessive price rises and sharp declines, reducing investor appetite.
Isn’t NFT a bubble burst?
As mentioned above, the market has expanded so rapidly that the negative effects are now occurring. This has destabilized the market, and there are concerns that no one will invest in it. However, it is still believed that the era of NFTs will continue in the future. Currently, there are many opinions that the boom is over or that it has ended and has no future, but there are also opportunities. The reasons are as follows.
New entry by companies
Companies and celebrities are entering the NFT market one after another. Therefore, it is believed that the NFT boom will not end as long as there are still new entrants. As a result, awareness is increasing even among people who have never heard of NFT before. Famous companies include Facebook and Adidas. Many companies are getting involved, seeing the future of NFT in society and the economy. Companies are paying attention to it.
NFT introduction by SNS
Instagram and Twitter are introducing NFTs. You can now set your Twitter icon to a one-of-a-kind NFT. This is expected to increase awareness of NFTs, as they are being promoted to the general public. Popular photos and art are often discussed through distribution and posting. There is also an increase in posts of new news and online videos. Some users are adding designs and products to their collections. You can put your ideas to good use while retaining ownership.
resale
Resellers are also appearing on the NFT boom. Resellers are generally disliked, but they are helping to revitalize the NFT market. The advantage of NFT resale is that it will be a digital asset, so there will be no fixed costs. Since the market is still developing, it is said that profits can be increased in the future.
Bybit’s NFT Marketplace
Bybit has an NFT marketplace. Once you open an account, you can actually enter and trade, so let’s give it a try. Make money by developing new digital art data.
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