Analysis of the prospects and development value of the NFT market

NFT (non-fungible token), as an emerging form of digital assets, has attracted much attention in recent years. Many people are interested in the prospects of the NFT market. So, what are the future development prospects of NFT? PHP editor Yuzai will briefly discuss the potential and prospects of the NFT market from the perspective of value analysis.

Is there a future for the NFT market?

The NFT market has a promising future, and Boring Monkey has become a popular IP. From the initial 0.08ETH to the current 90ETH, its market value has rapidly doubled, reflecting the popularity of the NFT market. However, NFT collections worth hundreds of thousands of dollars exceeded the purchasing power of ordinary people, so capital quickly intervened. Greenland Group, Beisui, Li Ning and other companies have announced the purchase of Boring Monkey NFT.

Why do large companies frequently purchase NFT? NFT has attributes such as uniqueness, scarcity, and indivisibility, which opens up imagination space for the storage and circulation of digital assets and even the development of the digital economy.

In fact, there are more considerations for large companies to purchase NFT. Once they purchase an NFT, they gain full commercial use rights to the NFT, which allows them to sell peripheral products, further expand the industry chain, and tap commercial value.

According to the latest report from non-fungible token (NFT) data company Nonfungible.com, NFT transaction volume reached $17.6 billion in 2021, a 21,000% increase from $82 million in 2020. This data shows that NFT is developing at an amazing speed. At present, the NFT secondary market has huge potential. Some institutions predict that if China opens the NFT secondary market, the scale of China's NFT market is expected to reach approximately US$30 billion by 2026. The outlook is very optimistic.

NFT’s future development prospects and value analysis

As one of the currently popular branches of the metaverse, NFT carries a unique significance in the virtual space of the metaverse. In addition to its original characteristics of being parallel and independent from the real world, NFT also has uniqueness, non-tamperability and verifiable rights. Uniqueness and non-tamperability represent the non-fungible characteristics of NFT, while confirmability reflects its transaction attributes as a token.

Considering the uniqueness and transaction attributes of NFTs, they give the owner a unique identity and surface value, while being easy to trade and anti-counterfeiting. Through blockchain technology and non-fungible attributes, NFT has completely changed the virtual item market and created a new digital transaction system. This innovation provides a more secure, transparent and efficient way to transfer ownership and value of digital art, game props and other virtual items. The emergence of NFT provides more opportunities and choices for creators and collectors, and brings new development opportunities to the digital economy.

In the future, NFT industrialization is inevitable. NFT is more than just a virtual commodity or digital proof of rights, its value goes far beyond collectibles.

Currently, NFT has shown strong IP-derived value and social attributes. For individual consumers, it can become their own label on the Internet; for brands, they can hold their NFT for consumption. Targeted "content/products" are regularly placed in the digital wallets of users, which not only deepens the relationship with core consumer groups, but also enhances the brand's social attributes and user value.

The NFT industry is a very young industry, and with transaction volume, asset liquidity, and the number of new users expanding rapidly over time, we are only beginning to explore how many industries can take advantage of NFTs. Cutting-edge technological innovations such as NFT enable brands to reinvent themselves and provide better customer experiences. The NFT phenomenon enables brands to provide unique digital experiences to their customers while providing them with increasingly unique services. It is precisely because of developments like this, and the important role technology will play in the virtual world, that NFTs can become a new trend in branding and marketing.

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