Will NFTs Experience Another Boom? Or Have They Peaked?

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Boom or Bust What's Next for the Digital Collectible Craze

The concept of digital art, cryptocurrencies, NFTs, and everything that revolves around it is alien to hundreds of millions of people.

While some of us have the knowledge and awareness of what this type of technology could do one day, there is still a collective indifference. Only around 4% of the global population invests or has a basic understanding of cryptocurrency.

Still, despite the lack of mass adoption or knowledge, the market cap smashed into the trillion-dollar region during the last run of major price action, so there’s enough big money in the industry to make things interesting – and we’d say the same still applies during downturns and bear markets also.

Key Variables

Ultimately, the collective market cap of NFTs is hooked to the price of Bitcoin, as is the rest of the cryptocurrency market.

You may find a small-cap token or NFT that can buck the trend, but if Bitcoin takes a nosedive, there’s a guarantee your investment will diminish alongside it.

While many investors will take to social media to wax lyrical about small-cap tokens or the potential of altcoins, Bitcoin is the figurehead and mothership of the whole industry.

When we say market, this includes NFTs and other associated blockchain and cryptocurrency projects, which is why it’s vital you keep an eye on the price of Bitcoin, even if you don’t have money invested.

Will We See A Crypto Boom In 2024?

There are several rhetorics that cryptocurrency investors and traders believe could skyrocket the price of digital assets in the next bull run.

While they won’t all be off the market, part of trading and investing is understanding how the market works. Often, strong narratives, such as Dogecoin, can outperform other coins with actual utility.

So long as you understand what is driving collective investment, you’ll be able to slice through and identify NFTs or cryptocurrency that has potential.

image of a robot hand and nft letters

AI is one of the strongest narratives, and as the influence quickly stretches beyond the cryptocurrency sphere and permeates and disrupts society, it has a strong chance of doing the same in the crypto market.

Other narratives include gaming tokens and gambling platforms, which are beginning to see an immense increase in action due to decentralization and blockchain.

Casino gaming with cryptocurrency is widely considered to be more efficient and smoother because of the validation that occurs on the blockchain.

Since Bitcoin is the most renowned, visible, and prominent cryptocurrency by market cap, bettors choose to play at a Bitcoin casino more frequently than with other altcoins.

Therefore, a combination of gambling and AI could galvanize the sector in its entirety, as they both exemplify real use cases and could be the bridge needed to fuel retail investment to come back in its droves.

NFTs & Gaming Tokens

As the cryptocurrency and blockchain gaming industries rise and begin to challenge a number of traditional sectors, NFTs play a vital role in developing Play 2 Earn (P2E) games, where you can farm cryptocurrency or make in-game purchases.

In-game purchases in blockchain gaming are almost exclusively verified using unique NFT minting on the blockchain. The market was one of the most prominent narratives in 2021, and the astonishing value spiraled completely beyond any sort of early pre-bull run prediction.

Digital Art – The Rise Of A New Dawn

Art collectors have often seen value and investment in unique and engaging art pieces. Now our world is becoming increasingly digital, with movies, music, and art all utilizing digital platforms more than ever before.

Cryptocurrency YouTubers can make a handsome wage if they can clock up a few hundred thousand followers. Many of them use the same sort of filming equipment and generate the same subscriber levels as top YouTubers in other fields of finance.

Ten years from now, it’s hard to see the influence of mobile technology, devices, or the internet diminishing in any serious way.

NFTs play a pivotal role in proving ownership – so it will be highly intriguing to see how the price of the top NFTs responds to a significant increase in the price of prominent cryptocurrencies such as Bitcoin and Ethereum.

Conclusion:

Many economists believe that cryptocurrency is still in its primitive days. Within the next few decades, value and knowledge about the power of the blockchain and cryptocurrency could become a significant part of the global investing culture.

It was only a matter of time before completely digital art pieces like NFTs started to see an incredible rise in popularity and value.

So, while NFTs on their own might not be the catalyst that propels such seismic change on their own, they will make up one component that should help the whole market move in a positive direction.

There are other positive contributions, such as the halving bringing back retail investors, so NFTs also have a strong chance of expanding in value.

If Bitcoin can smash past the previous all-time high set in 2021, then NFTs could do the same, but there are a number of mitigating factors to consider.

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  • Celebrating childhood in photographs and emotions through photos. My aim is to transfer all my photography experience by sharing useful camera-related guides and individual reviews so you can get an idea about everything before buying.

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