- The NFT market has been in a deep slump since early 2022, with trading volume down over 90% from 2021 highs. However, analysts predict a rebound in 2024 as real-world use cases like tokenized assets and metaverse gaming expand.
- While top NFT brands like Bored Apes have evolved into lifestyle brands, the vast majority of 2021 collections will fail to regain interest after the crypto winter.
- NFTs are expected to bounce back in 2024 thanks to expanding use cases beyond just profile pictures, as well as mainstream adoption driven by major brands and platforms.
The NFT market has been in a deep freeze since early 2022. Trading volume has plummeted by over 90% from the highs of 2021. But analysts predict a major comeback for NFTs in 2024 as real-world use cases expand beyond profile pictures.
The Current Crypto Winter for NFTs
NFTs have been hit hard by the ongoing bear market in crypto. Prices and sales volume have cratered since early 2022. The term “NFT” itself has become taboo in many circles. But analysts see signs that the market could rebound next year if crypto markets recover.
Expanding Use Cases Beyond Profile Pictures
While profile picture collections boomed in 2021, their popularity has faded. DappRadar‘s Pedro Herrera says more impactful use cases like tokenized real-world assets and metaverse gaming will drive growth. Apple’s upcoming AR/VR headset could also boost metaverse projects.
The Evolution of Blue Chip NFT Brands
A handful of top NFT brands like Bored Apes have evolved into lifestyle brands with appeal beyond crypto. Their early-mover advantage and clever tactics have allowed them to grow as the market matures. These top projects are positioned to lead the market rebound.
The Collapse of Lesser Collections
While top NFT brands endure, the vast majority of 2021 collections will not recover, analysts warn. Their brief spike in demand during the hype cycle will not return. For every blue-chip brand, thousands of lesser-known PFP projects will fail to regain interest after the crypto winter.
NFTs are poised to bounce back in 2024 thanks to an expansion of use cases and mainstream adoption. But the market will look very different, with only the strongest brands surviving the crypto winter to lead the next generation.