For the past year, the NFT market has seen a large downgrade in the economy. However, is this downgrade a permanent result? Let’s find out.
The NFT market has had great success in the year 2021, especially in the gaming sector. As a less explored side of blockchain, the users were curious to know more about the NFT marketplace. You may now think, what exactly brought the NFT market down?
The freefall of cryptocurrencies can be one of the reasons behind this. However, the NFT market was largely affected, which cannot be the only fall factor. A report states that an inflated market can also be equally considered for the fall of NFTs.
Will this be a permanent state of NFTs?
The result majorly pulls us to one booming question, will this be a permanent change? Ethan McMahon, the Chainalysis economist, states that the NFT market saw a huge rise due to the hype in 2021. However, as it is still in its infancy, the market cannot achieve its full potential. He also adds that once the cryptocurrency and the NFT market mature, this will act parallel to the physical market, releasing from it.
Anjum Malik, the co-founder of New York-based private crypto hedge fund Manhattan Crypto Capital, is also very positive about the current market. Along with this, he states that this time gives the public a perfect opportunity to buy NFTs at lower prices.
End notes
It is true that the NFT market is low at the moment. However, this does not denote the market fall in the future. The advent of NFT has brought hope to low-income countries, and it continues to do so. As this market matures, the world can notice the higher use cases and advantages of an NFT investment.
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