With the innovative low transaction volume, where is the way out for NFTs?

What is the future of NFTs with low transaction volume?

Source: Blockchain Knight

Data from early September showed that the total NFT trading volume in August fell to $407 million, reaching a new low in the past two years, which also means that the transaction amount has returned to the level when the market started two years ago. Last week, in the article “Will NFT, which is no longer sought after, turn into a sandstorm or a phoenix rising from the ashes?”, we briefly discussed the development prospects of NFT, but due to space constraints, we did not explore the future development direction of NFT in detail. Therefore, this article will break it down one by one, representing only personal opinions and not constituting any investment advice.

Overall, the author believes that NFT’s value will be reassessed due to development in the following four directions:

• Popularization of GameFi or full-chain games

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  • Opinion If the Bot track cannot achieve an unforkable state, it will be very difficult to achieve sustainable revenue.
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• Rise of Web3 social networks

• Reshaping of RWA (or DeFi)

• Marketing revolution of NFT

Now let’s break them down one by one:

When we talk about GameFi, we will find that they seem to be even older than NFT, after all, it has been more than a year since the stories of Axie Infinity and StepN went viral, and people no longer expect GameFi to bring any fresh stories. However, we also see some traditional giants gradually entering the GameFi field, including EA, SEGA, and Ubisoft.

It can be imagined that if GameFi can recover and be accepted by more people, then the props in the game will probably be represented by NFT, and their liquidity will be further improved. As for whether there will be a unified standard, it may be the next direction worth paying attention to for NFT.

As for Web3 social networks, it has recently gained attention again due to the emergence of friend.tech, which has been a field of continuous attention for many years. However, its current manifestation is still in the expectation stage and has not entered the social circle, so it appears to be short-lived. But such attention is enough to bring fresh blood to NFT, after all, the trading volume is indeed attractive.

Protocol-based products such as Lens, which focus on social networking, have achieved a fundamental change in Web3 social networks through the use of NFT and are also good examples of NFT adoption. Of course, do not forget the existence of the ERC-6551 protocol, which may simplify the development threshold and usage breadth of current social protocols.

Another interesting direction for 2023 is RWA. Although the heat has declined, it does not prevent it from becoming the most talked-about story of this year. With the combination of NFT, the utility of RWA can be realized, after all, the form of NFT is more like real assets—one-to-one correspondence, each unique.

At the same time, the current integration of NFT and DeFi is mainly based on the logic of “NFT+DeFi” (similar to Blend), rather than “DeFi+NFT”. Although it seems to be only a change in position, it may bring more innovative gameplay.

Finally, it is the cliché to use NFT as a new marketing medium or means, which is mainly the gameplay of Web3 marketing. Currently, the most mature one I have seen is Starbucks’ “Odyssey Plan” launched in September last year. Starbucks has created the next-generation loyalty program model (CRM) in the form of NFT, bringing users a brand new experience over the past year.

Although the “Odyssey Plan” has not reached a prominent level yet, it has attracted the attention of some marketing experts and some companies. Perhaps in a new cycle, Starbucks will bring more interesting gameplay to users to meet its Web3 integration narrative. This also means that NFT’s innovation will have more possibilities, after all, Starbucks’ own NFT market has exceeded tens of millions of dollars.

Therefore, if we focus on the value carrier of NFT, or treat it as a tool, we will find that it is not limited to avatars and various small pictures, but quietly surging in the undercurrent. However, most people have not paid attention to these details yet because they are not enough to bring about a qualitative change.

To conclude this week’s sharing with a modified poem by Mr. Beidao, optimism is the passport of optimists, pessimism is the epitaph of pessimists, and at least for now, the NFT track is still worth keeping a sense of optimism.

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