In 2021, NFTs were everywhere; everyone was talking about them, and many people were buying them without knowing what they were or why they may be valuable. The NFT bubble was fueled by hype and speculative investments, the macro economy was in a good place, and people had enough extra money to spend on things like digital representations of apes without substantial research. We heard stories of so many A-list celebrities spending hundreds of thousands of dollars on NFTs whose intrinsic values were nowhere near that amount, many of whom have made a loss on investment of over 80 percent.

This type of demand is not sustainable because the market will always correct itself. The issue with this particular situation is that this correction came alongside the emergence of a bear market in crypto and macroeconomic downturns like recessions and rising inflation rates; we can not forget the FTX collapse as well. Basically, people are more meticulous about their money and not throwing it about like they were in 2021. So yes, although it is evident that the NFT bubble has burst, and it looks like the market has crashed, this is not and can not be the end for NFTS. NFTs have so much untapped potential, and they will definitely be back on a large scale in a safer and more sensible form. Even in the current market situation, people are still buying NFTs they believe are valuable; the volume is just much less than it has been in the recent past.

The Future Of NFTs

Going forward, people will buy NFTs based on the value they will get from them rather than prevalent hype or hoping to turn over a huge profit in the future without doing any research. Here are some of the ways NFTs will provide value in the future:

Event Ticketing

If you have ever tried to get tickets to a high-demand event like a Beyonce concert, you would have noticed that tickets sell out quickly. This is often due to the ticket bots people use to get more than their fair share of tickets so they can resell them. This frustrates consumers, ruins their experience, and robs event organizers of some revenue. Some of these resellers even scam people trying to get tickets by selling the same ticket to multiple people.

The use of NFTs for ticketing provides a solution to this problem. Using tickets in the form of NFTs instead of traditional ticketing methods is more secure and more convenient. Buying an NFT ticket on the blockchain from an artist directly eliminates the need for third-party sellers, allowing the artists to make more money. The transparency and immutability that come with using blockchain technology also reduce the risk of scams and ticket loss, improving the consumer experience.

Gaming

NFTs are unique and can not be replicated; this provides an avenue to create in-game collectibles that can not be duplicated and can be used across different games. These tokens provide a new opportunity for game developers to make money and give the players a sense of ownership, adding a whole new gaming dynamic. NFTs allow players to extract the value they create within the game to the broader society. This is not possible in traditional gaming, as the value you create is trapped within the boundaries of the game. Imagine being rewarded with virtual land in a game, going to an online marketplace, and trading that land for cryptocurrency, which you could then use to buy real-world items. These opportunities never existed before in gaming; NFTs will change how we view gaming forever.

Healthcare

The use of NFTs will improve the healthcare sector in so many ways. Existing on the blockchain solves the problem of patient data loss, and all professionals will have easy access to the data they need when needed. Also, with NFTs, patients can own their medical data. When these patients tokenize their data, they can sell it to those who want it for research, or they can choose not to. The key is ownership, and that is what web3 is all about. The days of centralized organizations selling your data to third parties and turning a profit will soon be behind us. In addition to that, using NFTs will also help track supply chains, which aids the drug manufacturing process and makes it all more efficient.

Decentralized Loans

Since they are assets, NFTs can be used as collateral when securing decentralized loans powered by smart contracts. The way it works is pretty simple: the lender and borrower agree on the NFT’s value, the payback period, and the interest to be paid on top of the loan amount. All this information is then programmed into the smart contract. The smart contract becomes the owner of the NFT until the loan is paid back with interest and all conditions are met. After that, the NFT returns to the original owner. Like with any other type of loan, the collateral is at risk of being lost if the loan agreement terms are not fulfilled. All this happens on the blockchain, so there is high transparency.

Notes

The 2021 NFT boom was primarily fueled by hype, and if you hope that such a thing will happen again so you can quickly turn over a profit, it will likely not occur. That being said, NFTs are still valuable and will continue to be increasingly valuable as the web3 space grows. Going forward, the most profitable thing to do would be to do your research and find out which NFTs provide the most value and have the most relevant use cases like the ones mentioned in this article and invest in those. Try your best to block out the hype and focus on each token’s intrinsic value.

So yes, there will be an NFT revival, but it will be different.