The NFT market is constantly growing, sweeping franchises, corporations, and artists. This trend doesn’t seem to apply to cryptocurrencies like bitcoin and many others that show persistent instability. So how can we explain this complete lack of balance between two things that usually seemed tethered to each other?
Ups and downs
The last few months have been pretty unnerving for crypto-currency holders. Almost every coin traded on the market took its owners for a white knuckle roller-coaster ride that will convince the biggest investors to do some damage control and sell short. This concerning drop hit a new peak with the latest events provided by Russia. Although President Vladimir Putin calmed things down regarding Russia’s central bank call for a complete ban on crypto — the stress is still on. Holders got used to checking the market, and boom — Red across the board.
The NFT market, on the other hand, sends more of a carefree vibe to its crowd. Most marketplaces report a steady rise or even indifference to the crypto-market ups and downs. Theoretically, we can connect this to three reasons.
Number one: excellent public relations.
It’s undeniable that NFTs became unavoidable on most media platforms. We keep getting stories and reports about NFT related charities, massive purchases by celebrities, and other campaigns that recognize the revolutionary format’s high potential. Naturally, the well-deserved hype encourages curious minds to at least try and check out the NFT world.
Number two: Blockchains are becoming more accessible:
The second reason is the blockchain’s process of tearing down the notorious adoption barrier. Until recently, this technology was very complex and hard to use. But 2021 has seen the rise of accessible user interfaces in decentralized ecosystems. Marketplaces like OpenSea brought new opportunities for artists and creators. Companies like EXA finance and Fuse are determined to bring dApps into our daily life. And, of course, bridging solutions like XP. NETWORK’s NFT bridge unites them into one super-fast system. In other words, the so-called media hype was backed by an effort to turn NFTs into something that even non-tech-savvy people can use.
Number three: Sell to maintain
The third reason is a natural “sell to maintain” tendency that exists in every market. When a currency drop, any currency, purchasing an asset with a growing value with that currency is considered a smart move. In other words, when your crypto drops, buying an NFT with that crypto can maintain and even eventually increase the available funds. For a tangible example, let’s say you possess a large sum of Euros. You also notice that the Euro drops while real-estate blooms in your area. You can use these Euros to buy an apartment and turn this money into an investment to prevent the loss. Same with crypto, when the NFT is the actual asset that can grow in value.
A short disclaimer — Of course, there are several other major implicating factors here. But With gradually increasing utility cases, a technology that tries to adapt to the common user, and a growing number of sales and re-sales — the facts point to a very optimistic present and future for digital assets. A prosperous endeavor that can also bring stability and health to other tokens and coins — And eventually, to the rest of the decentralized economy.
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