In the beginning, all we had were coins used as a transaction. Even earlier, there was the barter system, but things have changed. The introduction of Notes made of paper became the means of marketing, and as time passed, these notes continued to evolve into UPI payments. Now, however, while those all exist, a completely new form of currency called crypto came into existence and began the saga of ups and downs.
Cryptocurrency, while initially created in 2009, was something that few others were aware of, and all of a sudden, there was a spike in the market, and ever since then, the market has gone through a drastic change. All went fine until the crypto crash, where countless people incurred heavy losses, and while all this was going on, there was another blockchain member who was forgotten. Yes, NFTs, despite the crash in crypto, the market did not have any significant effect.
These NFT marketplaces where countless NFTs are sold did not undergo any impact. While there might be several reasons, it is still quite confusing. The same factor that was not taken into consideration is that all there NFTs that are being bought need to be purchased with cryptocurrency, so why are the NFTs in the limelight despite all the?
NFT is still at an all-time high
The fact that NFTs are different art forms in the blockchain and not cryptocurrency could be why they were not greatly affected by the crash. That being said, NFTs are still being traded and sold on different NFT marketplaces at an outrageous scale. Despite the impact, the NFT marketplace list keeps updating, and more NFT marketplaces keep appearing.
Beyond that, it is quite surprising to note that even though crypto took quite a great hit, the NFT market hit an all-time high of nearly $12.13 billion. So it’s quite evident that people will continue to invest in NFTs despite the state of the crypto market. One major reason this is not happening is because of the rarity and exclusivity of these NFTs that people continue to invest in. None of these are similar to the others; these NFTs are proof of ownership; one cannot create fakes or a copy because the original cannot be replicated.
Venturing into the unknown
So another reason why the NFT marketplaces continue to Flourish could be because of the massive influence of the metaverse. For those unaware, the metaverse is a separate entity created with the help of VR and AR to create a domain where people can experience something out worldly. So with the Web3 games and the Metaverse, the NFT market was in for a joyride.
The implementation and use of NFTS were taken to the next level by using them in games, which was never done before. This also helped create a new P2E gaming market where you would play with NFTs and mine more NFTs. The games and the metaverse made an unknown reason for NFTs to exist, and apart from the fact that these games were revolutionary in every way, they were also a potential investment. NFT games and the metaverse were also one of the few reasons why the NFT marketplaces did not take a heavy setback because their application was diversified.
NFTs and celebrities
NFTs, while addressed as digital or virtual art, soon became a way for celebrities to put up NFTs of their own. This is because it allows the fans to hold onto some memorabilia of their favorite star but also ensures that there is only one of its kind. This makes it more special for the fan because NFTs cannot be faked or copied, so the exclusivity factor plays an important role.
This could be another possible reason why NFTs are still in the limelight because fandom never dies. This means people who wish to own something that could be exclusive only to them and is connected to a celebrity they idolize will still buy it even if the market has taken a hit.
To summarize, despite the crypto crash, the NFT market flourishes. There are several reasons for it and well that what has been discussed above. From the exclusivity and rarity of an NFT, it is the only one of its kind and cannot be replicated. To implement NFTs in the Metaverse and Web3 gaming, these NFTs are basics, from playable characters to skins, items, and so much more. Finally, the celebrity factor is where countless people are willing to purchase NFTs because it has some connection to their favorite celebrity.
While all these are the possible reasons why the NFT marketplaces did not face a slump, one cannot exactly point out the exact reason for the crypto crash not affecting the sale and purchase of NFTS.