In the weeks leading up to November, non-fungible token (NFT) data showed a consistent upward jump in weekly sales. While volume is far from reaching its 2021 peak, industry executives believe the upward trend is likely to continue.
On November 6, data published by blockchain analytics firm Nansen showed that NFT sales volume increased from $56 million in the week ending October 9 to $129 million in the week ending November 6.
NFT sales volume data over the past year. Source: Nansen
According to Jonathan Perkins, co-founder of NFT marketplace SuperRare, this trend is likely to continue in the coming months. The executive branch believes the worst is over and expects upward swings soon. He said:
“I think the worst of the NFT hangover-induced bear market is behind us, and things are turning around. Market volume will always be volatile, but I expect a huge upward macro trend over the next six months.”
Perkins also believes that the decline of NFTs was “pure sentiment.” The co-founder of SuperRare told Cointelegraph in a statement that nothing “has gone inherently wrong” with NFTs over the past 18 months.
“NFTs are a fundamental advance on the internet because they introduce traceable origins and ownership of digital objects. This unlocks a new online creator economy that could be 100x bigger than Web2,” he added. The director also believes that NFTs will be a large part of the online economy in the long term and that the space will see volumes that “eclipse those of the last cycle.”
Top NFT collections by 30-day sales volume. Source: CryptoSlam
Commenting on the topic, Sonia Shaw, partner and vice president of partnerships at digital asset exchange CoinW, said the recent growth in NFT sales reflects a “broader and deeper interest” that extends beyond just art and collectibles. Shaw told Cointelegraph that NFTs represent a significant shift in the management of digital and physical assets. She explained:
“Their application in verifying the authenticity of unique and valuable items across industries is crucial. […] NFTs are an essential part of the evolving digital economy, especially because of their integration into Web 3.0 and the metaverse.”
Shaw also highlighted that potential use cases for NFTs could revolutionize industries such as identity management, real estate, healthcare, finance and supply chain logistics. While the executive believes in the role of NFTs in advancing digital ownership, Shaw also told Cointelegraph that it is essential that players are also aware of the challenges. This includes regulatory considerations, environmental impacts and safety issues.
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Meanwhile, Oscar Franklin Tan, chief financial officer of NFT platform Enjin, echoed the sentiments. Tan made the case for NFTs, emphasizing that NFTs have already been established as a unique digital asset class completely separate from crypto.
The executive also told Cointelegraph that many investors entering the digital asset space in 2021 were particularly interested in NFTs. Furthermore, Tan also pointed out that NFT communities such as Bored Ape Yacht Club (BAYC) and Azuki have “remained intact” despite the bear market.
As more investors delve into crypto, they may eventually dive into NFTs as well. “Renewed interest in Bitcoin and Ethereum will necessarily spread to blue chip NFTs and newer collections, including gaming NFTs,” Tan added.
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