NFT trading slows, but interest in Web3 and Bitcoin NFTs remains strong.
NFTs took off in 2020 and have been gaining popularity ever since, especially in the digital art world. NFTs have generated great enthusiasm, but at the same time have been criticized for being volatile, highly speculative, and vulnerable to scams.
The value of NFTs is set by the market, i.e. supply and demand, and can be bought and sold in the same way as physical assets. NFTs are digital representations of assets and can also represent real world items such as artwork and real estate. Some users find that tokenizing tangible real-world assets in this way makes buying, selling, and trading more efficient, as well as potentially reducing the likelihood of fraud.
The world of Non-Fungible Tokens (NFTs) has undergone a significant change in recent times. Although NFT trading has declined, developers continue to show strong interest in Web3 technologies. Let’s take a closer look at the current picture.
Ordinals: Paving the Way for Bitcoin NFTs
Ordinals, a protocol that allows NFTs to be added to the Bitcoin Blockchain, is taking significant steps to support its developers. The creation of a non-profit organization aims to ensure that developers are compensated without compromising neutrality.
Indeed, the non-profit organization will have a board made up of four key people: Raph, Casey Rodarmor, the talented host of the Hell Money podcast, Erin Redwing, and the pseudonymous Ordinals coach, known as Ordinally. Together, they will carry the vision of Bitcoin Ordinals forward and lead the way to a future filled with innovation and possibility.
Programmer Casey Rodarmor first introduced signups to the Bitcoin mainnet in January, laying the groundwork for NFTs on Bitcoin. The development of this technology was primarily funded by Rodarmor, along with donated contributions to the core developers.
The NFT Trading Cooling Down
While the development side of NFTs continues to thrive, the business side has seen a noticeable slowdown. This “icy” phase in NFT trading is in stark contrast to the feverish interest seen in previous months.
According to a mid-year summary by CryptoSlam, the trading volume of these digital assets dropped sharply in the first six months of 2022.
Total NFT sales figure fell at the end of June to $800 million at the end of June, despite hovering around $4 million in early January. This figure represents a drop of 80% in the first six months of the year.
The cooling off of NFT trading may be indicative of a broader shift in focus within the crypto community. As the euphoria around NFTs settles, attention may be turning to other promising areas, such as Web3 technologies.
Continued Interest in Web3
Despite the slowdown in NFT trading, developers remain enthusiastic about Web3. The underlying technology and potential applications continue to attract interest and investment.
The continued enthusiasm for Web3 suggests that the world of NFTs is far from over. The integration of NFTs with the Bitcoin Blockchain and ongoing development efforts point to a promising future for both Web3 and NFTs.
All in all, the NFT landscape is evolving, with a decline in trading, but sustained interest in Web3 development and technologies. The creation of a non-profit organization for Ordinals and the continued push towards integrating NFTs with the Bitcoin Blockchain reflect a field that is maturing and diversifying. The future of NFTs and Web3 looks bright, with developers leading the way.
By Audy Castaneda
