Five years ago, the acronym “NFT” would mean nothing to almost anyone on the planet. Even today’s expert NFT collectors and flippers would look at you with a blank face if you were to time travel five years ago and talk about NFTs. Not because there was no such thing as non-fungible tokens back then, but because NFTs hadn’t made a breakthrough yet.
Nowadays, anyone that is interested in blockchain or investments has at least a basic grasp of what NFTs are. We have land, artwork, and game items in NFT form. Every piece of traditional item that holds value is being converted into a digital asset which then heightens its worth. The global NFT market has surpassed the $20 billion mark in 2022 and is growing exponentially. The fact that these numbers are just scratching the surface still is pretty exciting.
The increasing demand for NFTs is expected to propel the growth of the NFT market in the coming years. But why do people demand NFTs? Why do some NFTs have incredibly high price tags attached? And most importantly, will NFTs ever go mainstream?
What Makes NFTs Valuable?
Simply put, demand. A very simple supply and demand mechanism is powering the NFT bandwagon. NFTs are in demand because they verify the authenticity of a non-fungible asset. They are a one-of-a-kind item like Starry Night by Van Gogh or the most flawless copy of Super Mario Bros. from the 80s. While anyone can make copies of famous paintings, or dig into their basements and find an old video game, their value is zero to none, because they are fungible and lack authenticity.
Here are some other factors that make NFTs valuable:
- The identity of the creator, or the popularity of the collection
- Potential value
- Perception of the buyer and sentimental connection
- Market value of similar NFTs
Will NFTs Ever Become Mainstream?
NFTs are already starting to break into the mainstream market but in order to achieve this, more users should be stepping into the NFT space. A majority of NFT owners were familiar with blockchain thanks to crypto which made its breakthrough earlier. NFT space still needs some UX and UI work to access larger masses. Because it is difficult for new users to understand what NFTs are and how they work. NFTs have become an easy investment with a goldmine for returns, that soon ownership of a single piece of these digital assets could be worth your car, home or even a sports stadium in the future.
To an outsider, the terminology used by NFT enthusiasts alone can be difficult to wrap their heads around. Just as it is with traditional investment instruments, users don’t need to know everything about NFTs to invest in them. Think of it like this: are all stock investors from Wall Street? Of course not. Anyone with minimal financial literacy can buy stocks and sell them for profit. Considering TradFi had enough time to fine-tune its user experience, there is no reason for DeFi not to improve its communication with non-crypto-native people and gain their interest.
Most NFT marketplaces and NFT related DeFi projects started developing dApps to achieve the ease-of-use traditional finance can offer. When this transition is complete, users will enjoy the smoothest possible investment experience as DeFi is all about simplicity and accessibility.
Going back to the question about NFTs going mainstream, the answer is an absolute yes. It will just take time and some simplification.
Jump on the NFT Bandwagon with TribeOne
We can collectively agree that the real question is not if NFTs will ever go mainstream, but when.
Remember today’s NFT masters who would look at you blankly five years ago? The majority of investors are still oblivious to the NFT space. But the future looks bright with an increasing number of new users joining the community.
TribeOne is building an ecosystem where users will have access to products and services to invest in NFTs and make the most out of this thriving new space. You can take the first step into the NFT space via our dApp and take a loan for your very first NFT. Why do so?
Because TribeOne not only offers a smooth user experience but also allows newer areas of revenue generation in crypto via speculation/NFT-flipping by enabling users to take long positions on NFTs and self-liquidating. In other words, you can sell your NFT which still has remaining installments when its price reaches satisfying levels.
NFT space is still in the early stages of development. Emerging metaverse projects, a growing user-base, and innovative developers improving their platforms are paving the way for NFTs to go mainstream. Jump on the bandwagon early, so that you will not be too late when it is really too late.
TribeOne is the world’s first-ever NFT lending platform that offers a seamless experience; to the users through its innovative consumer-centric products. The platform will break barriers in the traditional financial ecosystem and revolutionize the DeFi sphere as a whole. Providing the community with a platform to lend, borrow and invest in NFTs. Therefore, offering an unconventional experience for all.