The narrative surrounding non-fungible tokens (NFTs) is evolving. Following a period of explosive growth and a subsequent decline in trading volumes, some members of the crypto community are questioning whether digital collectibles remain viable.

With some writing obituaries for NFTs, those working directly with the asset class beg to differ. Experts across the Web3 space believe the market is maturing rather than dying. As the hype settles, NFTs find their footing in more practical and sustainable applications.

Cointelegraph approached professionals working within the blockchain space to get their thoughts on the current state of NFTs.

NFTs are going through a cycle of correction

Anoir Houmou, founder and CEO of the Sui-backed video engagement platform RECRD, believes that the idea that NFTs are dead is an “oversimplification” because every emerging technology goes through correction cycles. Houmou explained:

“Recent trends indicate a maturing of the market after the explosive growth witnessed over the last few years. We’re moving into a phase where the focus is on sustainability, real-world utility, and integration into broader technological ecosystems.”

The executive added that the rise of several new SocialFi and GameFi platforms indicates a step toward this. Houmou added that the community can expect greater institutional investment as NFTs become more purpose-driven.

While NFT volumes are down, Yale ReiSoleil, CEO and co-founder of NFT trading platform Untrading, believes this is part of a natural market correction rather than a death knell. ReiSoleil explained:

"NFT volumes are down significantly, but that doesn't necessarily mean they're dead. The market is likely correcting after a period of hype.”

Oh Thongsrinoon, the chief marketing officer at Altava Group, which connects luxury brands to Web3, echoed the sentiments. “As with any cycle, there’s a peak, and if we observe the NFT space, the tokenization of real-world assets is growing healthily.

“With Bitcoin-based NFTs recently recording sales volumes of $148 million and Bitcoin standing as one of the top three leading blockchain networks for NFT sales, this signifies strong NFT sentiment," Thongsrinoon added.

Execs believe that NFTs are not dead

When asked if NFTs were dead, Toshiuki Otsuka, the founder of the snap-to-earn platform SNPIT, firmly rejected this notion. Otsuka told Cointelegraph:

"Absolutely not. NFTs are evolving beyond collectibles into tools for digital ownership and utility. Market corrections are normal and signal maturation.”

The executive believes that NFT technology holds immense potential across various industries. “As the technology matures, we can expect even more innovative and practical applications to emerge, driving broader adoption and utility," Otsuka added.

Meanwhile, Houmou also argued that NFTs are past their “infancy” and that developers are starting to find new and more creative ways to use them.

“NFTs are becoming more than just digital collectibles and transforming industries, including the $250 billion creator economy, by providing transparency, security, and new revenue models,” Houmou explained.

Thongsrinoon also argued that real-world asset (RWA) tokenization and proof of ownership remain the two “best use cases for NFTs.” The executive believes that adding real-world value adds tangibility and trust to NFTs.

“The technology behind NFT makes it a perfect and immutable smart contract whether that be real estate or government bonds among many potential uses," Thongsrinoon added.

Source : Cointelegraph - Jun 27, 2024