The state of NFTs – What’s next?

The NFT space is very new. Even though the first nft was made in 2014, the NFT market did not really get any attention before 2021, more notably most of the volume came towards the end of 2021. Most users where just experimenting in the space and going with the flow. But a lot has changed in a year, now it seems like the NFT space is past the infancy stage.

Active NFT traders and collectors have acquired much experience for a while, and several more resources educate new users on what to look out for and how to value NFTs. According to the survey conducted, the amount of NFT holders has doubled in the USA, but most agree that the hype and fad of NFT Profile Pictures (PFPs) is overhyped, and we begin to see less in terms of value being transacted than there was in 2021.

Projects become companies

There has been a vast reduction in cases where founders call themselves an NFT project and an increase in founders of NFT companies. This observation is an excellent indicator of the market becoming more mature because we are beginning to see that these projects are now registering as legitimate, tax-paying companies.

The expectations customers have for founders are drastically higher today than last year, which is very positive for the space.

Customers expect to see the company’s forecast for the next 3-10 years, not just six months like it used to be. They are indicating that people are less interested in flipping and more interested in buying into something that will give a good ROI long term.

Branding & Marketing

If you as a company do not put much time into branding and marketing before you go public, you will have a hard time getting any attention. We see the entire space having higher standards. Even Opensea now has a ‘storytelling’ category.

We are in a transitional phase where web3 and web2 strategies will become a bit more similar, more data-driven marketing, well-thought-out marketing campaigns, and the need to identify and understand your audience. The old web3 strategies of whitelist giveaways and locked-Discords to trigger FOMO does not work anymore. As a company, you must adjust, or you will waste your time.

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