The NFT market is apparently hitting a rebounding period following the debacle that the entirety of the crypto world faced following FTX’s collapse in early November. This is likely because trust in NFT projects doesn’t seem to have degraded in people’s minds as much as other crypto projects have following the FTX bankruptcy. There are various reasons why this is the case, and ultimately, trading volumes have now been rising for two months straight, with January 2023 seeing the highest volumes in over half a year, according to a Dapp Industry Report. Let’s then see why NFTs are still one of the most reliable assets in the crypto world, and where 2023 could lead the entire sector.
NFT Market Fluctuations
In recent months, the NFT market hit a roadblock in October and November, around the time the entire crypto market was also shaken by the controversy surrounding FTX. In October, trading volumes dipped to a low of $662 million, with a slight recovery in December and then a staggering increase of 38.5% to $946 million in January 2023. Polygon, one of the main chains on which NFTs are traded, had the biggest influx of traders in January, as its trading volume grew an incredible 124% from December.
NFTs Still Valuable Assets
Even after experiencing these difficulties, NFTs continue to be among the most valuable assets in the crypto sphere. Why, you may ask? It’s likely because NFT platforms are starting to experiment with utilities linked to their collections, meaning that users will start to benefit in concrete, tangible ways when owning or buying an NFT starting from this year.
Previously, NFTs were seen more as a simple asset that would be held and then sold to make a quick profit. Now, with their ever-growing popularity, big brands and companies have started experimenting with them and are now ready to offer their customers more efficient and simple benefits that anyone can understand and take advantage of.
Big Companies Experimenting with NFTs
A major example that all of us probably know is Starbucks, the global coffee giant. Starbucks is introducing a rewards-based system called Journeys as part of a meaningful exchange with customers. Essentially, customers will be rewarded with an NFT collectible – a “journey Stamp” – and the more they earn, the more benefits they unlock. Benefits will range from free drinks to even more meaningful ones like virtual espresso martini-making classes.
Nike is another big name that has entered the NFT world: the sportswear giant created an amazing Web3 project where people could create and design their own sneakers in the metaverse, and then be able to buy them in real life. They also introduced a rewards-based system where its customers can rack up points and receive rewards like exclusive physical apparel or chats with its pro athlete sponsors.
Short-Term Future and CoinGames
Judging by the examples of well-known companies that have entered the NFT market – and there are plenty more we couldn’t mention for ack of space – it is apparent that the NFT craze is not going away anytime soon. Even at a moment when the crypto world seemed to be in disarray in November 2022, NFTs managed to bounce back in an unprecedented manner.
The artistry displayed in NFTs is also ever evolving and is yet another trait that will keep investors on their heels, ready to pounce on the next opportunity.
In addition, and for the joy of our users, CoinGames will be joining these big companies and is announcing that it will launch its first-ever NFT collection sometime in Q4 of 2023! So stay tuned for further updates regarding this topic and many more.
