After the chaos of 2022, the NFT market is yet to recover and faces many possible future challenges to optimize its growth. The key challenges facing the NFT sector include user experience, lacking security, and lack of attention from big brands. As big companies try to adopt NFTs, the sector will start growing rapidly.
Although the NFT market is recovering from the turbulence of 2022, it still has a lot to recover from in 2023. The key areas for NFT growth are UX and security.
According to recent reports, the NFT marketplace is finally regaining Its strongest position since the mid of 2022. This indicates good NFT market growth despite multiple crashes in the last year. The NFT marketplace lost its bull run in 2022 and remained stagnant ever since then.
The release of Blur, a popular NFT marketplace is the major development in the NFT marketplace in 2023 so far. However, the launch became controversial when many experts linked the Blur platform to huge wash trading activity.
In February alone, wash trading increased by 126% from the $250 million volume in the previous month. It made around 24% of the whole trading volume in every bug NFT marketplace.
NFT marketplaces incentivized users to increase their trading volume. As soon as $BLUR was launched, wash trading saw an almost trifold increase in its volume.
Focus Is Shifting Away From NFT Market
According to analysts, the failure of SVB caused a temporary drop in the NFT marketplace. However, NFTs soon recovered their market cap due to the increased investments in top-tier NFT markets.
The year 2023 has many obstacles for the NFT market. The stigma around the NFT market is a big barrier to its growth as well. Moreover, digital companies and big brands are hesitant to use the word “NFT” in their branding and are instead using words like “Digital Collectibles” to increase the appeal of their products.
The bull run of NFTs also saw increased interest from brands, and many experimented successfully with NFTs as well.
Facebook rebranding itself as “Meta Technologies” is the biggest development in this regard. The current market requires many companies to make tough decisions, but most players do not have enough resources or reasons to invest in Web3 or NFTs.
Usability Of NFTs
Despite the many setbacks with have affected the NFT market lately, there are still many reasons to be optimistic. In the upcoming year, the NFT marketplace can grow rapidly due to Its increased uses in real estate, fashion, and finance.
So, the popularity of NFTs is directly related to their usability. With the increased usability of NFTs in the upcoming year, the market is expected to grow slowly yet steadily.
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