In the weeks leading up to November, non-fungible token (NFT) data showed a continued rise in weekly sales. Although sales are still far from their 2021 peak, industry executives believe the upward trend is likely to continue.
On November 6, data released by blockchain analysis company Nansen showed that NFT sales jumped from $56 million in the week ended October 9 to $129 million in the week ended November 6.
Jonathan Perkins, co-founder of NFT marketplace SuperRare, said this trend is likely to continue in the coming months. The executive believes the worst is over and expects an upward trend soon. He said:
“I think the worst of the bear market caused by the NFT hangover is over and things are looking up. Market volumes will always fluctuate, but I expect the macro trend to rise significantly over the next six months.”
Perkins also believes that the downturn in NFTs is “purely emotional.” The SuperRare co-founder told Cointelegraph in a statement that there have been no “substantial problems” with NFTs over the past 18 months.
“NFTs are a fundamental advancement for the web because they introduce traceable provenance and ownership of digital objects. This opens up a new online creator economy that may be 100 times larger than Web2,” he added. The executive also believes that in the long term, NFT will become an important part of the online economy, and the transaction volume in this field will “exceed the previous cycle.”
Commenting on the topic, Sonia Shaw, partner and vice president of digital asset exchange CoinW, said that the recent growth in NFT sales reflects a “broader and deeper interest” that goes beyond art and collectibles. Shaw told Cointelegraph that NFTs represent a major shift in digital and physical asset management. She explained:
“Their application in verifying the authenticity of unique and valuable items across a variety of industries is critical. (…) NFTs are an important part of the growing digital economy, especially as they integrate into Web3 and the Metaverse.”
Shaw also emphasized that potential use cases for NFTs could revolutionize industries such as identity management, real estate, healthcare, finance, and supply chain logistics. While the executive believes in the role of NFTs in driving digital ownership, Shaw also told Cointelegraph that participants must also be aware of these challenges. This includes regulatory considerations, environmental impacts and safety issues.
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At the same time, Oscar Franklin Tan, chief financial officer of NFT platform Enjin, also expressed the same view. When arguing for NFTs, Tan emphasized that NFTs have been established as a unique digital asset class that is completely independent of cryptocurrencies.
The executive also told Cointelegraph that many investors entering the digital asset field in 2021 are mainly interested in NFTs. In addition, Tan also pointed out that NFT communities such as Bored Ape Yacht Club (BAYC) and Azuki have “remained intact” despite experiencing the bear market.
As more investors enter the cryptocurrency space, they may eventually get involved with NFTs as well. Tan added: “Renewed interest in Bitcoin and Ethereum is bound to spread to blue-chip NFTs and newer product lines, including gaming NFTs.”
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