Changtui The NFT market will recover, and we will usher in another epic, anti-gravity NFT bull market.

Changtui The NFT market will rebound, ushering in another epic NFT bull market.

Author: Teng Yan

Source: Twitter@0xPrismatic

Translation: MarsBit, MK

Is the NFT market taking its last breath? It seems so, looking at the plummeting prices of “blue-chip” NFTs. But let’s wait and see what our crystal ball tells us:

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Despite platforms like Blur and LooksRare trying to boost the market, weekly NFT trading volume remains stagnant. Decreased interest? Lack of fresh capital? Correction of overvaluation? It could be a combination of these three factors.

But wait, there is hope. I am 95% confident that the NFT market will recover at some point… and we will witness another epic, gravity-defying NFT bull market.

First, let’s take a long-term view. Currently, NFTs only account for 1.3% of the total cryptocurrency market value. Insignificant. With the potential to capture cultural value in various fields such as art, music, and gaming, it is not unreasonable to think that it could reach 5-10% in the next cycle.

Secondly, history tells us that the cryptocurrency market is highly cyclical. Even if we consider NFTs as “shitcoins with pictures” as @cobie said. Well, the shitcoin market has given us many insights.

Remember the peaks of the shitcoin cycles in 2017 and 2021? They always seem to make a comeback after a period of calm. The phoenix in that proverb. NFTs may not be an exception.

Now, I can argue that history cannot predict the future. It doesn’t mean the same cycle will definitely happen. That’s true. But following it seems reasonable until it no longer works.

However, picking winners is difficult. How many of the top 50 coins in 2017 still have an impact today? Do you remember VET, Waltonchain, Antshares? Most have gradually been forgotten.

I think the same thing will happen to NFTs: it’s the “shiny new object” syndrome. Many winners of the next cycle may not have emerged yet. But there is a way to avoid this: I’ll introduce it at the end.

(Image provided by @kadavy)

Well, I admit, I don’t actually have a crystal ball (if you do, please let me know). So let’s speculate. If we go by a 4-year cycle timeframe, we might start seeing some sprouts in the NFT market in the next 9-12 months and reach its peak in 2025.

Third, the next NFT bull market may be even bigger than the previous one. This is because NFT financial products such as lending, derivatives, Buy Now Pay Later, index funds, etc. could become the catalysts for an explosive bull market.

For example: @Tribe3Official, @arcade_xyz

Fourth, major DeFi blue-chip stocks have started to rise slightly. In the past 90 days:

• MKR has risen by 60%

• COMP has risen by 45%

• SNX and AAVE have risen by 10% to 30%

Some of this is driven by fundamentals: protocols like @MakerDAO now generate over $200 million in annual revenue.

What’s the relationship between DeFi and NFTs?

A lot! First, it shows us how an industry can recover: by building revenue-generating businesses. Similarly, when the NFT industry recovers: I predict that those involved in revenue-generating businesses will attract the most interest from investors. Whether it’s plush toys like @pudgypenguins, guilds and game operations, or fee-based markets, etc.

In addition, do you remember that the NFT season in 2021 started at the end of the DeFi summer in 2020? People became wealthy and had money to flaunt their identity value on JPEG images. I expect similar dynamics to occur again.

Because let’s face it, when you become a cryptocurrency billionaire, those rare Pepe NFTs don’t seem so expensive anymore.

In summary: I sincerely believe that those who remain cautious during the bear market will be rewarded. Be patient, observe, and persist.

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