Just like cryptos, NFTs have had their period of decline in activity. But the trend is reversing, as the market attracts more and more followers. The proof is the upward jump in weekly sales.
NFT market recovers after decline
Digital assets have caused panic in the markets with the value of most collections falling. For some, that was the end of NFTs. As a result, it was difficult to make predictions about the future of these assets. Against all expectations, the sector is recovering and there has been a steady increase in sales volumes in the weeks leading up to November.
According to data from blockchain analytics company Nansen, sales volume reached $129 million in the week ending November 6 compared to $56 million in the week ending October 9. For industry leaders, there is no doubt that the worst is over and that upward fluctuations are brewing.
According to Jonathan Perkins, the co-founder of NFT marketplace SuperRare, the market will always be volatile. But he expects a massive upward trend over the next six months. Moreover, he believes that the slowdown in TVN was only a feeling. For him, like other leading players, DTVs unlock a new economy that could revolutionize many industries.
The increase is expected to continue in the coming months
The main players in the NFT sector believe in these assets and for them, there is no doubt that the recent growth should continue for several more months. Partner and VP of Partnership at digital asset exchange CoinW, Sonia Shaw joins Perkins in his bullish predictions.
She said the increase in sales volume goes beyond art and collectibles. Rather, it would reflect a broader and deeper interest, as DTVs represent an essential part of the evolving digital economy.
As a result, there is no risk that the bear market will resurface, especially since the potential use cases of these assets will revolutionize, among other things, identity management, finance and chain logistics supply.
And as Oscar Franklin Tan, CFO of NFT platform Enjin, points out, non-fungible tokens are a unique asset class, quite distinct from crypto. However, this does not prevent interest in bitcoin and Ethereum from spreading across the sector.
The NFT market is regaining value after a bearish period. Even though current volumes are far from the 2021 peak, industry experts predict the uptrend will continue. But while NTVs have everything they need to maintain sales growth, it is essential that players become aware of the challenges. In particular, safety issues, regulatory considerations as well as environmental impact.
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