Comeback in 2024? This is what NFTs are like in the new year

• NFTs no longer in the focus of investors
• After the hype, skepticism spread, experts feared a bubble
• NFTs could make a comeback in 2024

The last few turbulent years for cryptocurrencies, digital assets, etc. have also had a noticeable impact on the emerging technology of non-fungible tokens (NFTs). An NFT, or “non-replaceable token” in German, is a crypto asset that is unique and non-divisible – in contrast to cryptocurrencies. It represents a digital certificate of ownership or an asset on a blockchain and can be issued for all kinds of digital items, such as digital works of art or other collectibles.

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According to experts, NFTs could make a comeback in 2024, after the industry initially became quiet after the peak phase in 2021 and early 2022. At the beginning there was a real hype surrounding NFTs: artists, musicians, athletes and also big brands sold digital works of art, music and other collectibles at enormous prices. However, skepticism gradually spread due to counterfeits but also inadequate regulation, and analysts increasingly warned of a bubble.

Interest in NFTs is growing again

However, towards the end of 2023, general interest in NFTs increased again, as Coindesk, among others, noted. Large companies and corporations paid more attention to the industry again and entered the NFT sector, as established companies such as Nike and Starbucks had previously done, as can be seen from Coindesk’s “Crypto 2024” forecast package. Technological advances such as improvements in blockchain platforms and the associated increased efficiency, security and scalability are likely to provide further support in this context. As Coindesk also noted, more traditional financial institutions are also recognizing the value of digital assets and NFTs as an investment opportunity. Finally, integrating NFTs into existing financial products could help further strengthen market acceptance and stability. The NFT world is changing rapidly and is likely to continue to do so.

That is likely to change in 2024

According to Coindesk, the next NFT products are likely to look very different than before. The focus is shifting from a small amount of high-quality assets to many of these products in large quantities at lower prices to appeal to the broader consumer market. As an example, Coindesk cites that major players like Ticketmaster as well as newcomers like tokenproof or YellowHeart have tested NFTs for event tickets, memberships and other forms of fan engagement: “These types of products offer consumers who are unfamiliar with NFTs the opportunity “To experience the digital ownership that comes with this new technology.” As Coindesk describes, “NFTs offer a company or creator the opportunity to benefit from the power of decentralized value creation by turning their customers into a community: the asset itself gives rise to a network that connects holders to the brand and each other; At the same time, ownership provides consumers with an incentive to share the brand with others and help build it. This implies that these smaller NFT products “are not just experiments – they are the future,” as the forecast continues. “Therefore, we expect brands with ‘small’ NFTs to make it big in 2024. And when they do, they are likely to attract many more consumers to the space.”

Upswing for NFTs in 2024?

Furthermore, linking artificial intelligence to NFTs could provide further boost for the industry. AI-driven applications could improve the creation, management and trading of NFTs.

There are a number of analysts who expect NFTs to experience a significant upswing this year. As Decrypt reports, Pedro Herrera, head of research at DappRadar, was also recently confident: “People are starting to understand the real concept behind NFTs, namely proof of ownership, authenticity, etc.” According to Herrera, the technology underlying NFTs has now matured to the point where it can achieve its full potential. “We are starting to see a lot of use cases that go beyond simple collectibles. I think this trend will continue strongly in 2024,” Decrypt quotes Herrera as saying. “Unfortunately, 90 to 95 percent of the collections we saw during the NFT bull market will not come back,” the expert predicted.

NFT comeback in 2024?

Ultimately, it remains to be seen whether NFTs will actually make a comeback in 2024. The dynamics of this industry depend on a variety of factors, including technological developments, regulatory frameworks and also investor confidence. It remains to be seen whether the NFT market can overcome the challenges. However, the increasing adoption and demand as well as the integration of NFTs into mainstream experiences suggests that the industry is on the right track.

Editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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