Where is the NFT market headed? NFT prospects

php Editor Baicao will take you to discuss the current situation and prospects of the NFT track this time. As a popular digital asset field in recent years, NFTs (non-fungible tokens) have attracted widespread attention in art, games, music and other fields. However, with the development of the market and the influence of many factors, has the NFT track declined? This article will analyze the current situation of the NFT track and look forward to its future development prospects to help readers better understand this field.

Is the NFT track sinking?

The NFT market size plummeted by 92%. Although this data is shocking, it cannot be simply concluded that the NFT track is sinking. In fact, during the bear market, projects with real value and technical prospects gradually emerged, bringing more possibilities to the encryption world. This year has seen a number of exciting projects emerge across a variety of fields, including Azuki, Moonbirds, Skyweaver and DigiDaigaku. The emergence of these projects has prompted the explosion of new markets and platforms such as X2Y2 and Blur. It is foreseeable that NFT will still have many potential development directions in 2023, such as NFTFi and AI NFT.

Although the encryption field is currently in a bear market and the market situation is sluggish, the NFT track still shows unlimited potential and prospects. From a user perspective, 2022 is not affected by the decline in market value. Instead, it can be regarded as a year of continued development after the first year of NFT, showing the success of NFT.

NFT Track Prospect Analysis

According to transaction data, NFT transaction volume has reached two peaks in the past year, respectively on January 13, 2022 and May 1, 2022. Among them, sales in the first week of May reached US$1.8 billion, setting a record this year, but continued to decline thereafter. Currently, the daily NFT trading volume is approximately US$60 million.

After the NFT market experienced a period of peak, transaction volume gradually declined towards the end of the year, and there was no obvious sign of recovery. This downward trend can be attributed to the bearish sentiment in the macro market, as well as a series of black swan events experienced by the cryptocurrency market, such as Terra, Celsius, 3AC, and FTX. Due to the impact of the overall market situation, the NFT market has been negatively affected, resulting in a decrease in transaction volume.

Despite the sluggish trading volume, the number of holders and traders continues to increase, showing that users are still actively involved in trading in the down market. This data also shows that the market has enough users that continue to grow, sending a positive signal.

By the end of the year, NFT search volume had dropped by about 90%, showing that interest in digital collectibles has waned during the bear market. Search volume is rated on a scale of 1-100, with 100 being the peak search. The search trend is basically consistent with the rise and fall trend of the NFT market value.

The above content is the answer and analysis about the sinking of the NFT track and the prospects of the NFT track. NFTs have the same value as those created by the market, and because the NFT's ownership certificate is stored on the blockchain, it cannot be easily tampered with. For example, if you own an NFT of land, no one can change it by foul play. Even if you sell the land, the transaction can be verified by the public. An increasing number of startups and cryptocurrency exchanges have joined the NFT market, contributing to the growth in the value and volume of NFT transactions. This trend is expected to continue to gain momentum in the coming years.

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