In the weeks leading up to November, non-fungible token (NFT) data showed a constant upward leap in weekly sales. Although volume is still far from its 2021 peak, industry executives believe the upward trend is likely to continue.
On November 6, data released by blockchain analytics firm Nansen showed that NFT sales volume increased from $56 million in the week ending October 9 to $129 million in the week ending November 6.
According to Jonathan Perkins, co-founder of NFT marketplace SuperRare, this trend will likely continue in the coming months. The executive believes that the worst is over and expects increases soon. He said:
“I think the worst of the NFT hangover-induced bear market is behind us, and things are looking up. Market volume will still be volatile, but I expect a massive upward macroeconomic trend over the next six months.
Perkins also believes that the NFT slowdown was “purely sentimental.” The SuperRare co-founder told Cointelegraph in a statement that over the past 18 months, nothing “inherently has gone wrong” with NFTs.
“NFTs represent a fundamental advance on the Internet because they introduce traceability of the origin and ownership of digital objects. This paves the way for a new online creator economy that can be 100 times larger than that of Web2,” he added. The executive also believes that in the long term, NFTs will constitute a significant part of the online economy and that the space will see volumes that “eclipse those of the last cycle”.
Commenting on the topic, Sonia Shaw, partner and vice president of partnership at digital asset exchange CoinW, said the recent growth in NFT sales reflects a “broader and deeper interest” that extends across the world. beyond art and collectibles. Shaw told Cointelegraph that NFTs represent a significant shift in the management of digital and physical assets. She explained:
“Their application to verify the authenticity of unique and valuable objects across all sectors is essential. (…) NFTs are an essential element in the evolution of the digital economy, particularly with their integration into Web3 and the metaverse.
Shaw also highlighted that potential use cases for NFTs could revolutionize industries such as identity management, real estate, healthcare, finance and supply chain logistics. Although the executive believes in the role of NFTs in advancing digital ownership, Shaw also told Cointelegraph that it is essential that players are also aware of the challenges. This includes regulatory considerations, environmental impact and safety issues.
Meanwhile, Oscar Franklin Tan, CFO of NFT platform Enjin, echoed these sentiments. Making the case for NFTs, Tan pointed out that NFTs have already been established as a unique digital asset class entirely separate from crypto.
The executive also told Cointelegraph that many investors entering the digital asset space in 2021 were primarily interested in NFTs. Furthermore, Tan also highlighted that NFT communities like Bored Ape Yacht Club (BAYC) and Azuki have “remained intact” despite the bear market.
As more investors get into crypto, they could eventually get into NFTs. “The renewed interest in Bitcoin and Ethereum will necessarily extend to blue-chip NFTs and new collections, including gaming NFTs,” Tan added.