The Death and Rebirth of NFTs: From Zombie Coins to Evolving Gems

NFTs are Still Alive and Kicking – Just Taking a Brief Break

NFTs aren’t dead, they’re just taking a break.

So, here we are again, my fellow digital asset enthusiasts, witness to yet another funeral procession. This time, it’s the putrid cadaver of the nonfungible token (NFT) market that’s on display. The blockchain industry and its ever-opinionated commentators have found their beloved corpse to poke at. They proclaim, with a touch of sadistic glee, that NFTs are dead, deceased, lifeless. Rolling Stone boldly declares, “Your NFTs are actually — finally — totally worthless.”

Well, my friends, it’s true that most NFTs are indeed worthless. But before you burst into uncontrollable sobs, let’s take a stroll down memory lane. Remember the ICO tokens? They were the life of the party during the bull market of 2017, only to wither away in the icy winter of 2018/19. And what about those countless DeFi protocol tokens that blossomed and withered post-DeFi-summer of 2020? They too joined the ranks of the walking dead.

In the vast crypto universe, more than 1.8 million tokens now exist, with a combined market cap just grazing the $1 trillion mark. However, hold your horses, because the top 10 protocols and tokens hog over 93% of the total. Do the math. The remaining tokens form a long, long tail of worthless zombie coins. See? The majority of tokens bite the dust, and NFTs are no exception.

Why such a dismal fate for NFTs, you may ask? Well, my dear friends, the barrier to entry to create an NFT project was as low as finding a chocolate chip in Willy Wonka’s factory. Anyone and everyone, it seemed, could whip up an NFT collection in a matter of minutes with just a few keystrokes.

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And so, when a frenzy of trading activity and money flooded into this new corner of the crypto market in mid-2021, the free market responded as expected: it supplied. And let’s be honest, my friends, supply doesn’t always equal quality, especially in this wild west of an industry. We’ve seen this cycle play out time and time again, and now we find ourselves in the first real NFT winter.

A-listers, those glittery stars of the digital realm, have quietly withdrawn their NFT Twitter avatars. No more shilling of apes with Paris Hilton on late-night TV by the likes of Jimmy Fallon. Even Ashton Kutcher’s Stoner Cats has settled with the SEC. The collective sense of embarrassment is palpable.

As a result, NFT trading volumes have plummeted from the heady heights of $1 billion per week in mid-2021 to a measly sub-$100 million today. It’s as bleak as a winter night in the Arctic. But, my friends, remember what I said back in October 2021 about NFTs? “Peaks and troughs are nothing new, it’s what emerges from them that’s worth paying attention to.”

And so, let me sprinkle a glimmer of hope amidst the rubble for those curious and open-minded enough to seek it. In September, news emerged that PayPal filed a patent application for an NFT purchase-and-transfer system.

Wait, there’s more! Pudgy Penguins, those adorable creatures of the digital tundra, have expanded into physical toys. Yes, you heard me right. You can now cuddle a pudgy penguin in real life, just like I do (disclaimer: I own a fat penguin jpeg).

And speaking of collaborations, Doodles have joined forces with the casual footwear genius of Crocs, bridging the physical and digital realms. The legendary Gary Vee’s Veefriends have also partnered with Reebok, proving that you can indeed have your digital cake and eat it too.

Let’s not forget the immersive experiences. At a summer concert, Harry Styles fans were treated to an app with a self-custodial digital wallet, anticipating future NFT rewards. Meanwhile, Justin Bieber is paving his own path, collaborating with a blockchain music platform to turn his song into an NFT with royalty streams flowing to NFT holders.

But wait, there’s more good news! The top auction houses are bringing mainstream artists into the NFT world. Keith Haring graces Christie’s, while Sotheby’s partners with Ledger to offer a co-branded Ledger Nano X for buyers of premier digital art.

So, my friends, don’t be fooled by the naysayers and the grave dancers. NFTs are not “dead” in the sense of a final demise. The fundamental technological magic that NFTs offer will continue to evolve, just like the unstoppable force of blockchain itself. The weak hands, weak teams, scams, copycats, and fast money will fade into the annals of history, mere footnotes from another crypto cycle.

As we bid farewell to this NFT winter, let us welcome a new season of NFT projects that are more sophisticated and commercially viable, enriching our ecosystem in fresh and meaningful ways. Stay curious, my friends, and remember – in this ever-changing crypto world, sometimes the greatest treasures emerge from the darkest depths. Keep your eyes peeled for the evolving gems of the NFT realm, and let’s ride the wave of innovation together.

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