Opinion Is the future of NFTs secure and will NFTNYC return in 2025
Disclaimer: The author’s views and opinions expressed in this article are their own and do not necessarily reflect the views and opinions of the editorial team at crypto.news.
This year’s NFT.NYC event was unlike any other. Since its inception in 2019, NFT enthusiasts and industry players have gathered here to explore the latest trends and innovations in the field. The event aims to celebrate the impact and potential of NFTs, with a clear mission to drive mainstream adoption. Therefore, the level of excitement and investment surrounding the event can be seen as a gauge for the state of the NFT landscape. However, this year’s event was notably subdued.
Compared to previous years, there was significantly less capital spent on activations and booths, and the atmosphere on the show floor felt muted. In fact, it was even quieter than the 2023 event, which itself was less vibrant than the 2022 edition. While there were still some interesting projects present, the overall energy and buzz were lacking, creating a different atmosphere from the excitement and engaging conversations experienced at recent events like Token2049 Dubai and GDC.
But does this shift imply that NFTs are dying? Not at all. This year’s event actually reflects a positive change within the crypto industry. NFTs have matured and are no longer merely a speculative trend. They have become integrated into various sectors of the crypto industry, eliminating the need for a dedicated NFT-focused event. People have moved on to explore tokenization in areas such as gaming, finance, and real estate. NFTs no longer have to establish their own infrastructure from scratch; instead, they can leverage the robust systems and scalability offered by established crypto ecosystems.
So, what has caused this shift? The NFT market experienced a crash during the crypto winter of 2022. The term “NFT” became synonymous with digital collectibles, and the industry gained a negative reputation due to overpriced JPEGs and “expensive digital images of monkeys.” The speculative frenzy that fueled the popularity of collectible NFTs has subsided, resulting in a decline in their popularity.
According to Statista, NFT sales volume in the art segment decreased by over 30% from April 2021 to April 2024. The market experienced a significant downturn in October 2023, leading to a staggering 83% decline in floor prices from the peak.
However, the purpose of NFTs has evolved, and it is crucial to redefine the term away from collectibles and focus on practical use cases. One exciting development is the tokenization of financial and real-world assets. As of December 2023, the Total Value Locked (TVL) in tokenized RWAs surpassed $6.5 billion. The financial industry is at the forefront of adopting RWA tokenization, with players like Blackrock and Franklin Templeton leading the way.
There is also growing enthusiasm for asset tokenization to represent ownership in various assets, including real estate, art, and stocks. For example, dividing a real estate asset into tokens allows for fractional ownership, where investors can trade these tokens on blockchain platforms, enhancing liquidity and streamlining ownership transfer processes.
In the gaming sector, NFTs have revolutionized digital ownership, enabling players to truly own virtual assets like characters and weapons. These NFTs can be bought, sold, and traded in dynamic marketplaces, creating real value. Cross-platform compatibility further enhances their appeal, allowing seamless transfers between games. However, there are still challenges to overcome before this becomes mainstream.
The shift from hype and speculation to integration within the wider crypto space demonstrates the maturation of NFTs. This transformation brings numerous advantages, such as leveraging existing infrastructure, scalability, and fostering collaboration and innovation. As NFTs continue to diversify and find new applications, their role within the crypto space will solidify. The future of NFTs is promising, as their sustained growth and integration pave the way for a thriving ecosystem.
About the author:
Dr. Alun Evans is a co-founder of LAOS Network and has over 20 years of experience leading and designing games and tech companies. He is skilled in creating innovative products that address experiential and developer challenges. In addition to his role at LAOS Network, he is the CEO and co-founder of Freeverse, a company focused on building scalable blockchain infrastructure. Dr. Evans also has experience leading pioneering companies such as Shar3d.io and Bodypal.com. He holds a Ph.D. in Medical Physics from University College London.
