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Last week, there were reports from many sources which indicated that the Non-Fungible Token (NFT) sector has totally collapsed.&nbsp; 
These reports stated that digital collectibles are now worthless because out of a sample of 73,257 NFT collections, 69,795 have a market cap of zero ETH. In clearer terms, those numbers say 95% of the total collectibles in circulation are dead and 23 million people now hold NFTs with no value.&nbsp; 
Further reading: <a href="https://technext24.com/2023/09/22/nft-market-collapse-tokens-worth/" rel="noopener noreferrer nofollow">Study reveals NFT market has collapsed with majority of tokens now worth less than JPEGs</a> 
Media houses rushed to post the figures as a sign of warning to investors but are Non Fungible Tokens dead, as the reports want the general public to believe? I do not think so. 
Let’s see why. 
<h4 id="nfts-are-not-dead">NFTs are not dead&nbsp;</h4> 
Of course, there have been highs and lows, but the idea that a technology as useful as the non-fungible tokens is dead or going away is ludicrous. 
While trading volumes are certainly down, digital assets still serve purposes. NFTs are a digital wrapper for non-physical and physical items allowing them to be tracked and traded, a utility with wide applicability regardless of whether it is reflected in market volumes or not. 
<figure class="wp-block-image size-full"> 
 <img width="800" height="400" src="https://technext24.com/wp-content/uploads/2023/02/jiju.png" alt="What will it take for African celebrity NFT projects to make profits?" class="wp-image-180752"> 
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The <a href="https://markets.businessinsider.com/news/currencies/nft-market-crypto-digital-assets-investors-messari-mainnet-currency-tokens-2023-9" target="_blank" rel="noopener noreferrer nofollow">report</a> circulating last week says there’s only 5% of collections that are actually worth something which explains why “you don’t see people hawking ugly cartoon apes on the internet as much anymore.”&nbsp; 
However, the same study failed to spotlight Bored Ape and other blue-chip digital collections still trading at royal prices. The average <a href="https://www.coingecko.com/en/nft/bored-ape-yacht-club" target="_blank" rel="noopener noreferrer nofollow">price</a> of a Bored Ape Yacht Club token is still around $40,000. A situation that further drives the narrative that media outlets tend to publish the extremes or negatives in order to drive traffic. 
For someone who has covered the crypto beat for quite some time, it is not surprising. Bitcoin has been written off countless times, yet it’s still standing strong and offering unquantifiable value. It has millions of followers and the price is over $26,000. Suffice it to add that it was the best-performing asset in Q1 2023. 
And still, if you go out there: “Crypto winter is here and the crypto space is dead.” 
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 <img width="800" height="533" src="https://technext24.com/wp-content/uploads/2022/09/Image-1.jpg" alt="Sega tiptoes away from Blockchain, says it is good for nothing" class="wp-image-158978"> 
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<h4 id="utilities-of-nft">Utilities of NFT</h4> 
People in the world of digital assets and non-fungible tokens continue to build and develop the technology to make something useful out of it. These projects are increasingly adding value and the growth in functionality is where the future of non-fungible tokens likely lies.&nbsp; 
Although current market conditions might seem subdued, the ongoing innovation and potential for integration with both digital and physical worlds suggest that their continued relevance and growth are highly probable. 
In the long term, NFTs would evolve over time and become linked to real-world assets, such as property ownership or unique physical goods. Research already shows that NFTs are the most remarkable in the world of art, with many digital collectibles <a href="https://www.demandsage.com/most-expensive-nfts/" target="_blank" rel="noopener noreferrer nofollow">selling</a> for tens of millions of dollars. 
Related post: 
<a href="https://technext24.com/2022/05/19/top-5-most-expensive-nfts-in-history/" rel="noopener noreferrer nofollow">Here is a list of the top 5 most expensive NFTs in history and why they cost that much</a> 
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 <img width="800" height="533" src="https://technext24.com/wp-content/uploads/2022/09/image-5.jpg" alt="NFTs, Blockchain and Web3: The next kinds of nerds are being raised" class="wp-image-158980"> 
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Subsequently, collaborations with traditional industries, technological advancements, clear regulatory frameworks and educational efforts can significantly boost NFT utility and adoption. 
Just like previous tech crashes, non-fungible tokens would rebound. According to <a href="https://www.statista.com/outlook/dmo/fintech/digital-assets/nft/worldwide" target="_blank" rel="noopener noreferrer nofollow">data</a> from Statista, there are 13.95 million NFT users in 2023, but that’s expected to hit 19.31 million users by 2027 which indicates that the&nbsp; NFT market will continue to grow in users, revenue and market capitalisation. 
So during the current bear market, infrastructure for smoother onboarding and to protect NFT adopters from malicious actors in the next NFT bull market should be built. For the overall market volume, as we continue to see more meaningful projects on the market offering tangible benefits to more people, the numbers will get back to where they deserve.

Why the ‘NFT is dead’ beliefs are exaggerated

Technext.ng

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