We are in the digital era, which has some significant implications. Overall, there is a growing shift to the digital world. More people are finding opportunities in this new space, which has proven to have tremendous potential than we can imagine. When crypto launched, there was massive growth in terms of users, applications, and platforms.
Non-fungible tokens (NFTs) are the new block in this crypto space. NFTs emerged recently, but they have increased within that short time. The number of people moving to NFTs has grown exponentially. And this has resulted in a similar growth in the sales volumes of NFTs. For example, NFT sales reached $100 million in July 2020. This figure has grown so much by now.
Going by the recent trends, investment in NFTs is likely to continue in the foreseeable future. That’s because of the attractiveness and lucrativeness of this market. Unlike the crypto market, which is quite limited, the NFT market has more potential than we can imagine. So, what factors will keep the NFTs market on a growth trajectory?
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Scarcity
One of the reasons that the NFTs market will keep growing is their scarcity. NFTs are scarce, and this is one of their most significant sources of value. NFTs are unique and non-interchangeable. And this means that if you create your NFT today, there will never be another one like it. Additionally, unlike cryptocurrencies which are many, NFTs are very few. All these factors make NFTs scarce, which has implications for market growth.
In business and investment, scarcity is a good thing. Scarce products or services tend to have higher values. They also tend to be in high demand. Since NFTs are low in supply, they tend to have high values, which is an attractive factor for investors. Who wouldn’t want to invest in an asset that has high value?
Social Value
NFTs differ from many other asset categories because of their social value. For instance, NFTs are not tangible assets. They are representations of holdings in terms of proving ownership. So, unlike land, you can buy, see and develop. You can only enjoy the value of NFTs through their digital certificate of ownership.
People derive more than just profit from the NFTs market. They also find social connections, fun, and exclusive offers they would not find elsewhere. Many celebrities are now in this space, enhancing social value. Owning NFTs or being part of the market makes many people feel higher levels of social connection and relevance. And this is enough to keep them coming to the market hence the continued growth.
Opportunities
The NFTs market will keep growing because of its potential opportunities. Already, the market has provided opportunities for different categories of people, including artists and other content creators. Before NFTs, the concept of collecting digital artwork was unimaginable. NFTs are making this a reality.
Moreover, humans are yet to explore the opportunities in NFTs fully. NFT enthusiasts are keen on exploring these hitherto unrealized opportunities. Since NFTs depend on blockchain technology, the potential prospects can only grow. With the high expectations for new uses and value, the NFTs market will continue to grow.
Final Thoughts
Despite being an emerging market, the NFTs market is increasing, and this growth will likely continue in the foreseeable future. Various factors explain this, including the value of NFTs and future potential.