{"id":267668,"date":"2021-06-05T23:11:11","date_gmt":"2021-06-05T20:11:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion\/"},"modified":"2021-06-05T23:11:11","modified_gmt":"2021-06-05T20:11:11","slug":"the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion\/","title":{"rendered":"# The NFT bubble may have popped, but the sector is still primed for expansion"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e08199057e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e08199057e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion\/#Active_users_jump_ship\" >Active users jump ship<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion\/#NFTs_are_down_but_not_out\" >NFTs are down but not out<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># The NFT bubble may have popped, but the sector is still primed for expansion <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Nonfungible tokens (NFTs) took the world by storm in March and April of this year with an onslaught of daily headlines about record-breaking sales and big-name companies dropping their own one-of-a-kind digital art pieces dominating the mainstream <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>.<\/p>\n<p>Fast forward a few months and the narrative has shifted to the &#8216;NFT bubble&#8217; popping and doom and gloomers warning that NFT investors are on the verge of losing all of their money.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/cfc4d5a1-5c0d-429d-b8d5-da761606d2fb.png\"><figcaption style=\"text-align: center;\"><em>NFT market 1-year history. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nonfungible.com\/\"><em>NonFungible<\/em><\/a><\/figcaption><\/figure>\n<p>The rapidly declining prices and activity on the top NFT marketplaces have prompted many to speculate on the death of the nonfungible token space despite the well-known cyclical nature of the crypto market that can spring back to life at the drop of a hat. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">You knew this was coming, right?<\/p>\n<p> NFTs Are Dead<\/p>\n<p>(of course you can buy this song as an NFT)<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/gj6JFpFKZX\">https:\/\/t.co\/gj6JFpFKZX<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/NFveBKgdRn\">pic.twitter.com\/NFveBKgdRn<\/a><\/p>\n<p>\u2014 Jonathan Mann (@songadaymann) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/songadaymann\/status\/1400861671766249479?ref_src=twsrc%5Etfw\">June 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Active_users_jump_ship\"><\/span>Active users jump ship<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Active users are the lifeblood of NFT marketplaces, but the choppy nature of the cryptocurrency markets over the past two months, including the May 19 sell-off which saw $1.2 trillion in value wiped from the crypto market cap has led to a precipitous decline in user activity. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/330fda41-9151-49a2-b194-53598695c673.png\"><figcaption style=\"text-align: center;\"><em>Number of active wallets on NFT marketplaces. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nonfungible.com\/market\/history\"><em>NonFungible<\/em><\/a><\/figcaption><\/figure>\n<p>As seen in the chart above, the active wallets on NFT marketplaces peaked near the end of March and has since fallen by more than 40% as declining values combined with high transaction fees on the Ethereum (ETH) network kept traders out of the market. <\/p>\n<p>The decline in active wallets coincided with a decline in sales across the space as rapidly falling token prices exacerbated the losses of holders and collectors who saw their valuable art pieces lose up to 90% of their value overnight. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/ebdbd4f4-ef90-49c2-8643-dee3088f78b5.png\"><figcaption style=\"text-align: center;\"><em>Total number of sales on NFT marketplaces. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nonfungible.com\/market\/history\"><em>NonFungible<\/em><\/a><\/figcaption><\/figure>\n<p>The decline in active users has resulted in a 60% decrease in total daily sales which fell from a high of $325 million on May 7 to its current figure at $110 million. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"NFTs_are_down_but_not_out\"><\/span>NFTs are down but not out<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All is not lost, however, as there are many solid value propositions and use cases for NFTs that entrepreneurs and traditional businesses have noticed and embraced the sector.<\/p>\n<p>The blockchain ecosystem has already put forth multiple viable options to deal with problems facing the NFT sector, such as the launch of Enjin\u2019s\u00a0Efinity and JumpNet protocols which help to lower fees and allow for interoperability across different networks.<\/p>\n<p>Another popular solution Polygon, an Etheruem sidechain that allows projects to stay on Ethereum while also having access to a fast, low fee environment. In the past three months a large number of NFT-oriented and gaming projects have migrated to Polygon and as the crypto and NFT market improve, these low fee environments should help to boost activity on the network.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/a0cde260-94a8-4106-bcb3-2c8a577627a1.png\"><figcaption style=\"text-align: center;\"><em>Top 5 NFT marketplaces. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dappradar.com\/nft\/marketplaces\"><em>DappRadar<\/em><\/a><\/figcaption><\/figure>\n<p>While the current statistics may look bad when compared to the recent all-time highs when viewed from a longer time frame one can see that the average number of NFT sales rose nearly 300% between January and the end of May. This shows that there is strength in the sector despite the market plunge that began on May 12.<\/p>\n<p>The NFT ecosystem may have seen a significant drop in activity and token values over the past month but it&#8217;s far too early to proclaim the death of NFTs as the world has only scratched the surface of what is possible with this nascent smart contract <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/the-nft-bubble-may-have-popped-but-the-sector-is-still-primed-for-expansion\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# The NFT bubble may have popped, but the sector is still primed for expansion &#8221; Nonfungible tokens (NFTs) took the world by storm in March and April of this year with an onslaught of daily headlines about record-breaking sales and big-name companies dropping their own one-of-a-kind digital art pieces dominating the mainstream media. Fast&#8230;<\/p>\n","protected":false},"author":1,"featured_media":267669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvNThhMTIyYWEtZGI1NS00NDdlLTk2MjAtOTEwYWNiNjI4OGFiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74894,74863,99002,74891,74939,95118,74892,86389,73785],"class_list":["post-267668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-blockchain","tag-cryptocurrencies","tag-decentralized-marketplace","tag-ethereum","tag-market-analysis","tag-nft","tag-tokens","tag-marketplace","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/267668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=267668"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/267668\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/267669"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=267668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=267668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=267668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}