To answer the question of whether NFTs are truly sustainable, we must first answer the preceding questions in the following order:
Does the fall in NFT interest rates pose a major threat to the industry? Well, it depends on how the data is interpreted. If the trends are approached predominantly from a sales perspective, the answer is probably yes, but if examined in terms of usability, the scope is more positive.
As mentioned above, Google’s search trend reports are best used for one purpose, which is to determine, among other things, the retail interest in a product based on the number of times people have searched for it, and its related terms. , online.
As such, judging by Google’s report indicating a downward trend in NFT search interest, there is no doubt that the retail industry for related products will face a lot of future uncertainty going forward. In particular, demand for NFTs and related services, as well as participation in their projects, may continue to decline if the pattern continues.
While declining search interest raises concerns about the future of NFT selling, it doesn’t outweigh their usefulness. In fact, this could be the nudge the space needs to pay more attention to experts’ advocacy about how important the usefulness of NFTs could become.
The truth is, since the first NFT publicly debuted in 2014, most of the general interest in the space has been driven by profit. As a result, the value of NFT projects is perceived as “vague”, as they serve no tangible purpose other than providing the stated value attributed to them by holders and collectors, and the industry has largely evolved after this course.
When downward search trends occur, people tend to focus more on extrapolating the real applicability and usefulness of projects, and this could eventually drive demand again, with the added benefit of encouraging more projects that use technology. add value to the field.
Does the NFT ecosystem have any chance of long-term survival if the hype slowly dies out? The simple answer to this question is “yes”, and the truth here lies in the fact that the possibilities for NFT application are endless.
It is also important to note that in addition to being a simple hype, NFTs have a wide range of practical applications, although many of them have yet to be optimized. This is especially evident in the growing participation of large companies in the space.
To date, the industry has seen brands like Adidas, McDonald’s, Ray-Ban, Nike, the NBA, Taco Bell, Microsoft and Coca-Cola, among other global brands, dip their toes into the NFT/metaverse world.
While most of these brands have made their way into the NFT space, they have barely scratched the surface in terms of the vast possibilities NFTs can offer. Anyway, these brands have done the unexpected.
For example, sportswear giant Adidas teamed up with ‘Bored Ape Yacht Club’gmoney, and the team behind ‘Punks Comic’ nasty debut of his NFT project†
As a result, Adidas community members (i.e. customers) will have access to the brand’s virtual wearable collections in the metaverse gaming world.”The sandpit‘, as well as the opportunity to purchase gmoney’s physical hoodie, tracksuit, and iconic orange beanie.
Louis Vuitton too joined the craze, the introduction of a themed challenge called ‘Louis the game’ in February 2022. The high fashion brand tasked its followers with collecting 200 birthday candles along with its popular mascot – Vivienne – as she told the company’s 200-year story.
Undoubtedly, brands are increasingly using NFTs as a marketing tool, not only encouraging their consumers and audiences to participate in NFT collections, but also involving their communities in exploring themed campaigns.
Similarly, individuals have also found their own ways to leverage NFTs, especially in terms of advancing their skills and generating income. For example in a recent publicationwe explained how GameFi combines gaming and decentralized finance to create unique experiences that provide value to their players, highlighting the instrumental role NFTs play in the ecosystem.
People sign up for GameFi projects like Axie Infinity and Alien World to compete with other players and participants to earn and win NFT items, each of which can be exchanged for valuable cryptocurrencies. While this is currently one of the most alluring use cases for NFT, there are of course many more exciting applications in the works waiting to be discovered, and it will only be a matter of time before they reach the public eye.
One thing’s for sure: NFT’s best days are yet to come, and regardless of whether current search trends are up or down, it’s hard to predict exactly what the future holds for the emerging industry.