There Are Five Reasons to Believe NFTs Are Not Extinct

There Are Five Reasons to Believe NFTs Are Not Extinct

NFTs continue to lose ground as crypto winter drags on. Most sought-after collections now have floor prices that are more than 50 percent lower in ETH and dollar terms than their all-time highs, and trade volumes have fallen on OpenSea and other marketplaces. There have been a lot of abandoned initiatives. Space may be in trouble, but there have been encouraging hints in the last few weeks. The NFT space seems more livelier than its skeptics would have us believe between Eminem and Snoop Dogg turning into Bored Apes at the VMAs, a free mint hitting a 17 ETH floor, and the world’s largest social media corporation enhancing its digital collection capabilities.

5) The Rise of the Fluffy Penguins

In the first “NFT summer” of cryptocurrency, Pudgy Penguins was one of the most popular animal avatar collections before seeing a meteoric increase and subsequent crash. There were internal disagreements that led to its sale in April for 750 ETH to entrepreneur and investor Luca Netz, but the sale did not boost its fortunes as the cryptocurrency market as a whole was experiencing a slump. There was thought to be no longer any interest in community-driven NFT “PFP” collections, but in recent weeks, everyone’s beloved flightless birds from Ethereum have made a miraculous comeback.

On June 13, the floor price dropped to a new local low of about 0.85 ETH, marking a significant drop in Pudgy Penguins’ popularity. The recovery of the floor in recent weeks can be attributed in large part to the continuous use of Pudgy Penguin NFTs as Twitter avatars by notable crypto personalities such as Polygon’s Mudit Gupta and Nansen’s CEO Alex Svanevik, despite the fall in the price of these tokens.

Trading volumes for Pudgy Penguins skyrocketed on exchanges, and momentum rose when the project announced it had created an advisory board featuring Svanevik, Pentoshi, and other enthusiastic pengu fans. On August 23, the left-facing Pudgy Penguin #6873 sold for 400 ETH (about $650,000), reaching a new high point in the penguin craze that had begun the day before. Positive feelings about the initiative were bolstered by these advances. While the floor price for a penguin has dropped from its recent high of over $5,000, the popularity of these attractive avatars has not caused their prices to drop as much elsewhere.

4) Continued High Volumes of Trade on the ENS

Ethereum Name Service (ENS) trading exploded in April, when groups of NFT degens speculating on three- and four-digit ENS domain names drove prices through the roof, as reported by Crypto Briefing. Although no new ENS record-breaking trade days have been recorded,.eth domain registrations have continued to rise.

Scarce.Guide reports that the secondary market for ENS domain names now averages over $1,000 everyday. The average number of daily registrations has been over 10,000 over the past week, according to data collated by ENS developer Makoto Inoue, suggesting that interest in Dune is growing.

Prices tend to move in the same direction as trading and registration volumes. Since April, the ETH value of ENS domains with four digits, sometimes known as the “10k Club,” has roughly tripled. The going rate for four-digit domains is about $2,259 (or 1.43 ETH), while the price for three-digit names has risen to a whopping 31 ETH. Prestigious sales of extremely limited domain names also regularly trend on Twitter. Both opensea.eth and suilend.eth were sold for over 100 ETH in the previous month.

It’s impossible to deny, whether you’re sitting on your own stack of rare ENS domains or simply looking on in bewilderment.

There is persistent interest in eth names.

3) Through Facebook, Meta Extends NFTs

This year, 2022, has been a successful one for NFT adoption on Web2 social media, despite the faltering crypto market and its knock-on effect on non-fungibles. There was a surge in the use of Twitter’s hexagonal NFT profile images in January, despite the fact that the service charges a fee for using the feature.

As if to show that it wouldn’t be outdone, Meta has also released NFT integrations, first with Instagram in 100 countries earlier this month and then with Facebook just yesterday. Although specifics are still sketchy, it’s safe to believe that the social media giant will let users to connect to the blockchain in a manner analogous to Instagram’s integration, which now supports Ethereum, Polygon, and Flow NFTs.

Using NFTs as profile images on antiquated social media platforms is uninspiring on its own, but it does indicate the future direction of firms like Meta and Twitter. Allowing NFTs on social media is also a tremendous chance to introduce NFTs and crypto to a wider audience online.

Meta’s acceptance of what it calls “digital collectibles” may seem contradictory given how often reports of NFT integrations into social media are met with online mobs revolting against the entire field. There is, however, no such thing as negative PR, and if adoption keeps rising, even the naysayers may eventually come around.

2) At the Video Music Awards, Eminem and Snoop Dogg Preform as Two Bored Apes

Eminem and Snoop Dogg, two of the biggest rap stars in the world, have done a lot to raise awareness of NFT in the mainstream media in recent months, most recently by leveraging their performance at last weekend’s MTV Video Music Awards to promote NFT.

Sunday night’s MTV Video Music Awards performance by rap superstars Eminem and Snoop Dogg was another event that exposed a large number of people to NFTs. Those who have been keeping up with the duo this year would have noted that they have become staunch advocates for the Bored Ape Yacht Club NFT collection.

The Ape #6723 that Snoop purchased in December 2021 is now stored in his DEATHROWNFT wallet, along with other valuable NFTs from the CloneX, FLUF World, and World of Women collections. Following Snoop’s lead, on New Year’s Eve, Eminem bought Ape #9055.

Snoop Dogg and Eminem performed their new single “From The D 2 The LBC” at the VMAs, with the help of their fully-animated Bored Ape avatars. The Bored Ape Yacht Club NFTs were created by Yuga Labs, and the business collaborated with the two to create animations that look suspiciously like previews of the company’s impending Otherside Metaverse.

The audience’s response to the rappers’ Bored Ape set was polarized. The majority of crypto locals seem to agree that the presentation was painful to watch due to bad animation. The hate speech directed towards Eminem continues over at the r/Eminem subreddit. One commenter going by the alias GilbertGrape13 remarked, “This NFT thing he’s doing is straight up ass.” While some people had negative things to say, others, like Gabriel Shapiro, the general counsel at Delphi Labs, had more positive things to say. It may come as a surprise coming from a BAYC permanent bear, but he tweeted on Monday, “Okay, that might be unexpected, but the Eminem Snoop Dogg thing sounded kind of cool?”

In any case, the precedent it creates is intriguing, regardless of how well or poorly the performance was received or how the general public views Bored Ape NFTs. Maybe in the future more NFTs will be featured in mainstream media, and that may be good news for their eventual uptake.

1) Launching with a free mint, DigiDaigaku breaks the 17 ETH barrier

The most surprising change on our list comes last. One initiative has seemingly overcome the odds and sparked a buying frenzy unseen in the NFT market in months, despite declining prices, trash free mints, and joke collections about the NFT bear market.

The price of DigiDaigaku, a free mint project that many serious NFT fans missed when it began on August 10, jumped to a new all-time high of 17 ETH on Monday. NFT degens’ fascination with the anime girls’ avatars was stoked when they learned that DigiDaigaku’s creator, Limit Break, had secured $200 million in funding from a who’s who of investors last year, including Paradigm, FTX, Coinbase Ventures, and Mino Games.

For reasons that have not been made public (perhaps at the request of CEO Gabriel Leydon), DigiDaigaku will be the first game to implement Limit Break’s “free-to-own” game paradigm. Speculators have, unsurprisingly, had a field day driving up the price in the absence of reliable information on the project. Those that realized DigiDaigaku’s potential early were able to buy NFTs for about 0.5 ETH, which could have yielded a profit of up to 3,330% if sold at the peak.

DigiDaigaku’s entry into the market and subsequent success despite being a relatively obscure gaming product demonstrates that the highly speculative market is far from dead. While there has been a lack of activity in the NFT space for the past few months, it is clear to anyone who has been paying attention that this sector is far from dead.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.