Why NFT Capitalization Needs to Grow 10 Times

In January 2021, the total market capitalization of leading NFT collections was around $500 million. Ethereum-based projects CryptoPunks, NBA Top Shot, and Art Blocks have caught the attention of early adopters. At that time, skeptics doubted the long-term prospects, and the industry as a whole.

From virtual art to digital collectibles, NFTs have changed ownership and shown us a new era in the virtual space.

The sale of Everydays: The First 5000 Days for a staggering $69.3 million at auction house Christie's took NFT to the next level. And soon the combined market capitalization of the leading digital collections exceeded $8 billion.

However, over time, interest in the market declined. The boom, fueled by media attention and celebrity support, has passed and the market has entered a recession. Regulatory scrutiny, questions about intellectual property rights and doubts about the sustainability of the valuations caused a wave of negativity. The capitalization of collections has decreased, and digital tokens have begun to show high volatility.

As blockchain technology advances and ownership of NFTs is redefined, the market capitalization of leading collections will continue to change. At the moment, enthusiasts and investors are following the development of this sector with enthusiasm and believe in its growth.

 

Lado Okhotnikov, the founder of the Metaverse, is an ardent NFT fan, and he is sure that the market will soon return its capitalization to its previous level.

“It is not for nothing that our Meta Force team launched an updated version of the Royalty NFT program. One of these days the test period of bonus payments starts. Well, soon it is planned to launch its own Marketplace and the beta version of the Metaverse. And this is just the beginning,” Lado continued the thought.