Will there be a Reborn as NFT Trading Volume Plunges to the Lowest Point in 2 Years?
In 2021, NFT market saw its strongest growth period. On the mainstream trading platforms, we witnessed one after another PFP or JPEG collections that sold for astronomical prices. The incredible NFT work “EVERYDAYS: THE FIRST 5000 DAYS” by individual creator Beeple sold for $69.3 million. One of PFP’s emblematic projects, Bored Ape Yacht Club, often known as BAYC, instantly kicked off the ape wave throughout the whole NFT market.
Those NFT collections have direct linkages to personal social media, and their high social value of rarity and price makes the market swoon. PFP NFTs have even uncovered a way to maximize marketing effectiveness by using the celebrity effect to increase brand awareness and influence. However, not every project is a success. Until the NFT creators produce a stronger potential for long-term utility, booms and busts are unavoidable.
NFT transaction volume declined dramatically in the third quarter, according to Dune Analytics, with only $310 million in NFT transactions on OpenSea, the world’s largest NFT trading platform, this past October. This is also the lowest level since June 2021 and a 94% collapse from the peak at the beginning of the year.
With the suffering come new thoughts, such as expanding its practical functions or developing more novel and fascinating ways to engage. Sorting through the types of NFT currently on the market, it can be broadly divided into two categories: computer-generated NFT and NFT designed by individual artists, and other sub-categories also include music, sports, and photography. The former was developed in 1965 and is not a recent innovation. Its technical name is "generative art," and it is a computer algorithm constructed by engineers according to specific parameters. The artist then reworks the images on top of the algorithm, defining their style, elements, forms, and so on, before feeding these variables into the existing algorithm to produce the NFTs. The quantity of created pieces is often not small and can exceed millions.
Individually created NFT is more easily understood and is generally created by individual artists on NFT minting platforms with a very strong personal character. Takashi Murakami, for example, is a well-known visual artist spanning various disciplines who is also in high demand in the NFT industry. The public auction lottery for his own NFT collection, "Murakami.Flowers 2022” garnered approximately 5 million applications, greatly surpassing the entire number of addresses traded on OpenSea.
Art Gobblers, a new interactive project, has recently appeared on the market. Based on its characteristics, it may be classified as an NFT project as well as a GameFi project.
According to its official website, it is a decentralized art factory operated by aliens. Art Gobblers are so named because they eat art and consume in-game resources to transform it into 1/1 NFT. All artwork eaten by the Gobbler belongs to the chain and will be exhibited in its belly gallery in perpetuity. More interestingly, the founding team completed its experimental mechanism shortly after the launch of the project, which means that Art Gobblers project will be a self-sustaining ecosystem. The virtuous loop they hope for is that as artists create art, the cultural relevance of Art Gobblers will grow, and so will the demand of collectors. When artists see a higher demand for their art, they will be motivated to create cooler art.
Behind the new Token utility mechanism is the project owners’ apparent intention to develop their own style of NFT art. If the high miniting and selling prices of many Ethereum-based NFT projects put you off, the multi-chain NFT project, Dixel Club offers a more user-friendly entry point. This is a pixel art collecting site as well as a multi-chain NFT minting platform across Ethereum, BNB Smart Chain (BSC), Polygon, Klaytn, and OKX Chain.
There are no requirements for the experience and ability to code and manage smart contracts, users can design and create their own pixel art NFT collections, and at the same time, the genesis version can be used to recreate a new one by other users. For example, we created a genesis-version POA NFT of “Force Open Day”, everyone now can change the color of different sectors on the original one and mint a new edition.
Here is the link to Force Open Day POA (Free to Mint)
This is how it looks when you are recreating a new edition.
One-click to randomly change colors and a silky smooth processing experience are quite user-friendly to newcomers. At present, there are close to 100 Genesis collections on its official website, and there are also new collections by individual creators coming up. The spark of inspiration will be kindled where the traditional pixel aesthetic meets infinite imagination.
The present NFT market may not have reached its bottom; we are still in the midst of a bear market. However, there is still “news” that says otherwise. According to Alchemy, the number of smart contracts deployed has surged by more than 40% during this bearish market, and the use of SDKs has more than doubled. By today’s standards, the aesthetic worth of NFT is far from being quantified. As a new medium of artistic expression, its long-term value should be investigated and practiced.
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