Before we get started, here’s a quick and easy guide to what NFTs are and how they work, in case it’s all still unclear to you (which is understandable).
NFTs entered January 2022, when their sales rose to $17.6 billion, a staggering 21,000% growth compared to last year, according to a report by NFT analytics platform Nonfungible.com. Based on the number of registered cryptocurrency wallets, the number of active users increased from 89,000 to 2.5 million. There was a 3,700% increase in sellers and an almost 3,000% increase in buyers, all within that time period.
However, this explosive growth has not seen a similar increase in the use of NFTs. These signs have no real meaning, and even their actual use is limited in many ways. There’s not much you can do with an NFT other than hold on until you find someone who thinks it’s worth buying, which is where the problem lies. NFTs have no real value – since demand and value are driven by speculative interest rates, a loss of interest will inevitably lead to a fall in prices.
Other tokens, such as those in the NFT gold group, Bored Ape Yacht Club, buy you access to content, events, and prestigious forums. But if you can buy an 80K pixelated smart contract, you can join a very high club.