The public is becoming more aware of NFTs in the modern era. For the crypto market, last year was one of the worst. Despite that, NFTs sales were still increasing every day. The data indicates that a brisk start to the NFTs market in 2022 boosted the year-end total and helped make up for the several weaker months that followed.
The chief executive of OpenSea, Devin Finzer, has made an effort to distinguish NFTs from cryptocurrencies as the industry is being negatively impacted by a number of scandals.
He stated that,
The crypto industry had seen “some setbacks recently,” referring to the bankruptcy of FTX, a cryptocurrency exchange that went bankrupt in November, contributing to a drop in the value of digital assets.
According to one report, the NFTs market generated about $24.7 billion in organic trading volume across blockchain platforms and marketplaces in 2022. The $25.1 billion total reported in 2021 was slightly lower than that amount. Here are the top 5 factors that helped NFTs sales last year, despite the market collapse.
5 Reasons Why NFT Sales Were Successful Last Year
NFTs are frequently viewed as an investment opportunity because of their distinctive qualities. Since they cannot be divided, each NFT has a potential value greater than any of the cryptocurrencies used to purchase it. Due to the fact that their value is greatly influenced by demand and the price that someone is willing to pay, they are an attractive investment for those looking to make a profit.
Also Read: What is NFTs Rarity? Why Is Rarity Important For NFTs?
Digital Store Capital
Due to their capacity to maintain value, NFTs can be thought of as a digital store of capital. Certain NFTs provide an investment option that is secure and stable because they are not subject to inflation like conventional currencies. This isn’t always the case, though; according to some experts, the value of the majority of the current NFT offerings could decline by up to 90% over time.
One advantage of investing in NFT is that it may offer greater tax advantages than conventional stocks or bonds. This is due to the fact that NFT is regarded as a property and as such is liable for capital gains tax.
Verifying digital ownership with NFTs is safe. It is virtually impossible to forge or steal an individual NFT. However, each one is tracked and verified on a decentralized blockchain. As a result, they are perfect for protecting digital rights, especially when it comes to tangible assets like real estate.
Long Term Value
First and foremost, NFT investors believe they have long-term potential and will increase in value. NFTs are digital assets that can be anything that exists online, including works of art, collectibles, and even memes. Like CryptoPunks, one of the first NFT projects, some NFT projects are regarded as being rare. CryptoPunks are well-liked in the community and frequently sell for six or seven figures each.
Also Read: What Is Real Estate NFT? What Impact Is It Having On The Real Estate Sector?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.