Nonetheless, since January 2023, OpenSea, one of the major NFTs platforms, has seen its trade volume drop by more than 90%.
Many factors have contributed to the decline of such digital assets. Here are some of the most common concerns associated with the
- NFT market crash
- NFT scammers
- The FTX incident
- Cryptocurrency prices fall
But one of the most important elements driving the NFT reduction is the excess and bad quality of NFT projects flooding the market.
With the growing popularity of NFTs, a slew of new projects developed, filling the market with tokens devoid of novelty, inventiveness, or utility.
To lure traders, NFT marketplaces are forced to look for new incentives for users. In particular, the Blur NFT marketplace has updated its trader incentive system. Now the platform will distribute rewards in BLUR tokens to users who make a real contribution to the growth of the ecosystem.
Some people claim that NFTs will see their rise once again like in 2021, but frankly speaking, it is not a possible outcome for now. The NFT market, like every other type of market, faces a recession in the present day due to many factors we’ve covered earlier.
So when determining if NFTs are a wise investment in 2023, it is critical to examine the dangers. Volatility and uncertainty are inherent in NFT investing. They do, however, provide new prospects for digital asset ownership and exchange, and they have potential uses beyond art, such as music and gaming. To make safer investments, perform rigorous research and due diligence, taking into account aspects such as the creator’s reputation, quality, and the long-term potential of the related digital asset.