With the decline in NFT trading volume, where does the sector go from here
MIAMI BEACH, FLORIDA – APRIL 07: A view of the collection during the launch of social investment platform … [+]
2022 started well for the NFT and crypto market in general, but through dramatic sell-offs and industry-changing changes, the market – like many others – became not performing as well compared to the start of the year.
According to Bloomberg, through data from Dune Analytics, trading volume in NFTs (non-fungible tokens) has dropped by 97% since the start of the year. The report says there was $17 billion in volume in January, while September brought in 466 million dollars. The data was collected from popular websites such as OpenSea, Rarible, NFTX, LarvaLabs, Foundation and SuperRare.
As mentioned above, NFTs and the general crypto sector that make up web3 (the new iteration of the World Wide Web that counts decentralization, blockchain technologies and token-based infrastructure as its pillars) are not the only ones affected by skyrocketing inflation and threats of a recession. But with the market plagued by fraud and new tax rules coming in, the market is unique in how it has been affected. Where does the sector go from here and What does a comeback look like??
Adam Da Cata, founder and CEO of blockchain, metaverse and NFT development studio Run It Wild, and former Head of Partnerships at Decentraland, is known as a go-to resource for brands looking to succeed in the web3 arena.
Of the current climate, he opined, “I still think it’s just scratching the surface of its potential,”
“Many sectors are affected by the downturn in the markets, but web3 is specific in that it is still finding its footing in our society. So it is struggling with growing pains and a shaky marketplace.”
“In my opinion, there is no better time to jump in, there are tons of opportunities with how fast the space is growing. Mainstream media reports that NFTs are struggling, constantly reporting the price of artworks and what they were once worth, but failing to talk about the adoption curve and the momentum NFTs still have even in the bear market.”
According to data compiled by licensed trademark attorney Mike Kondoudis, the total number of trademark applications for NFTs and their respective products in the United States rose from 2,142 in 2021 to 6,856 as of October 2022.
De Cata’s company, Run It Wild, was acquired by public company NFT Tech in July 2022. Previously, he was an executive at Warner Bros., managing iconic brands and media franchises such as Batman ($29.9 billion) and Harry Potter ( worth 33 billion dollars) ). He has also worked on notable projects such as the first fully chained Elvis NFT for the Estate of Elvis Presley; the introduction of Sotheby’s, the famous 250-year-old auction house for their first Metaverse experience; and web3 strategies for Coca-Cola
On how the future of the entertainment sector aligns with NFTs and the wider web3 space, he continued, “Media and entertainment have the biggest opportunities, from sports to big brands with huge fan bases. NFTs unlock more ways for these brands to interact with their fans and more ways to make money.”
Netflix’s
“Enter the maze, find the fastest route to the fountain, retrieve the USB with classified information and get to the secret room as soon as possible,” the mission objective reads
During the first week of the experience going live, 2,000 people accessed the metaverse on Decentraland. Diego Alvarez, senior business developer at The Electric Factory, the programmers and architects behind the game itself, said the metaverse is ultimately “about having fun, about connecting with other people here. And that’s why we have this stimulus [trivia game] that makes you feel like you’re always doing something.”
He also went on to reiterate that those who are first movers into the market will now have a much better understanding of how it can be used for the public in the future.
MIAMI BEACH, FLORIDA – APRIL 07: A view of the collection during the launch of social investment platform … [+]
Da Cata concluded: “We believe that NFTs and web3 will transform the industry in the same way that the internet and streaming services did. NFTs allow fans to access and own exclusive content, while artists and NFT creators, like ourselves, can set the rules for how this exclusive content is consumed while generating revenue. We’re already seeing creators embrace the technology and the benefits it brings to the industry’s IP, licensing and community.”
“The opportunities are endless to work within the entertainment industry. Similar to what Harry Potter has done at Universal Studios, the opportunity to create digital experiences and content for major brands has great opportunities for NFT Tech.”
With the new age element in the industry, NFTs are still being brought into the mainstream consciousness of how they can be used. The culmination of the current bear market combined with increased education around the sector will be an interesting watch. Regardless, the entertainment industry is a certain growth area for the technology as it continues to integrate with media brands, film festivals and content.
