- Studies suggest the NFT industry is heading up for a 20 times increase in valuation by 2030.
- The BAYC NFT’s floor price has plummeted to lower than $100K.
- Expensive NFT asset class premiums combined with oversaturated & fraud-rampant markets have resulted in a dramatic price drop for NFTs.
Amid the burgeoning NFT market, the floor price of Bored Ape Yacht Club NFT tumbled below $100,000. A recent study by Verified Market Research indicates that the NFT realm is aimed to burgeon in 2030, with a 20 times increase in valuation, compared to 2021. This high-fold increase will make the NFT market hit $230 billion in value.
NFTs have experienced severe price depreciation in 2022. With an increasing number of low-quality NFT projects, markets swarming with scams and frauds, and worsening market conditions are making investors and enthusiasts question their belief in NFTs and their position in the Web3.0 space.
Undoubtedly, the NFT industry is heavily influenced by the cryptocurrency sector. Hence, when technology and digital assets peaked in the early years, new investors justified paying enormous premiums for NFT assets with the hope that their value will increase over time.
Meanwhile, long-term anticipation for tangible utility and the scarce nature of NFTs contributed to the initial high values for NFTs. However, the landscape has changed drastically. Organizations that are already part of the NFT ecosystem are concerned due to the rising number of scams and an overload of similar content in the market.
Moreover, the lack of excitement and the fear of fraud is unconsciously rejecting new businesses that considered joining the playground.
However, these challenging times are an opportunity for the space to resolve our current issues and evolve so that digital assets can continue to prosper. According to NFT experts, blockchain projects should focus on securing infrastructure and working with security partners to ensure security breaches are eliminated, buyers are protected from theft and creators’ work is not duplicated.
Moreover, the experts suggest that NFT-related platforms should develop their technology further to protect their users.
This growth is critical because the future of NFTs is promising due to the unique and easily transferable advantage it offers to digital assets. Adding on, McKinsey & Company, reports that the metaverse will most likely stand at a $5 trillion valuation by 2030.
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