NFTs have suffered everything from ridicule and scams to a big drop in demand due to crypto winter. Sometimes it almost seems as if some of the projects in the space are just going on with hopes and dreams. However, the sector has persevered through the recession, and the recent momentum in cryptocurrencies has made investors, community members, and viewers interested in NFTs again.
Sure, NFTs get a lot of heat for all the silly monkeys, rocks, and JPEGs that people spend millions on, but there’s a widespread belief in the industry that there’s plenty of value behind the concept and the various use cases it offers.
“I think NFTs are just cultural artifacts of crypto at this point. When people are having fun, it’s easier with a JPEG than just a token,” Ilja Moisejevs, co-founder and CEO of NFT marketplace Tensor, told TechCrunch+.
Most people hold onto their NFTs regardless of their monetary value, according to Yat Siu, co-founder and executive chairman of Animoca Brands. Making money from NFTs validates the belief of their holders, but Siu believes there are more important factors driving sustained ownership.
Similar to why people buy diamonds, there is a sense of value in investing in NFTs because it makes users look good or enhances their social status, Siu said.
“Some are basically just fraternity clubs. just people having fun with similar interests,” Moisejevs said. “Not a crazy idea, but NFTs do [the experience] stronger by connecting them together. You either lose money together or you make money together.”
And it looks like there are more people jumping to be part of the “make money together” bandwagon: In the last 30 days, there were about 120,000 more NFT buyers than sellers, and sales volumes increased by 72.7% to about $1.66 billion , according to the NFT aggregator CryptoSlam.
