Opinion: The NFT market will recover and usher in an epic NFT bull market

Author: Teng Yan; Source: Twitter@0xPrismatic; Compiler: MarsBit, MK

Is the NFT Market Breathing Its Last Breath? It looks like this – look at those “blue chip” NFT prices plummeting. But wait and see, let’s see what our crystal ball tells us:

! [DeFi] (https://img-cdn.gateio.im/resized-social/moments-40baef27dd-4a7c8afe6d-dd1a6f-1c6801)

Weekly NFT trading volumes remain stagnant despite attempts by platforms like Blur and LooksRare to boost the market. Losing interest? Lack of fresh capital? A correction for overvaluation? It may be a combination of all three.

! [DeFi] (https://img-cdn.gateio.im/resized-social/moments-40baef27dd-a770543bcd-dd1a6f-1c6801)

But wait, there is hope. I am 95% confident that the NFT market will recover at some point...and that we will have another epic, gravity-defying NFT bull market.

First, let's look at the long term. Today, NFTs account for only 1.3% of the total cryptocurrency market capitalization. negligible. With the potential to capture cultural value in multiple areas such as art, music, games, etc., it is not unreasonable to think that 5-10% may be reached in the next cycle.

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Second, history tells us that the cryptocurrency market is highly cyclical. Even if we think of NFTs as "altcoins with pictures" as @cobie said. Well, the altcoin market has taught us a lot.

Remember the peak of the altcoin cycle in 2017 and 2021? After a cooling-off period, they always seem to come back. That proverbial phoenix. NFTs may not be an exception.

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Now, I can argue that history does not predict the future. That doesn't mean the same cycle will necessarily occur. this is correct. But it seemed to make sense to follow it until it finally stopped working.

However, picking a winner is difficult. How many of the top 50 coins of 2017 are still relevant today? Remember VET, Waltonchain, Antshares? Most have gradually been forgotten.

I think the same thing will happen with NFTs: it's the "dazzling new object" syndrome. Many of the next cycle's winners may yet to emerge. But there is a way to avoid this: I'll cover this at the end.

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(Image provided by @kadavy)

Okay, I admit it, I don't actually have a crystal ball (if you do, please let me know). So, let's reason. If we take a 4-year cycle timeline, within the next 9-12 months, we may start to see some signs of sprouting in the NFT market, peaking in 2025.

Third, the next NFT bull market may be bigger than the last one. Because NFT financial product lending, derivatives, Buy Now Pay Later, index funds, etc. may become the igniting agent of the explosive bull market.

For example: @Tribe3Official, @arcade_xyz

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Fourth, major DeFi blue-chip stocks began to rise slightly. In the last 90 days:

*MKR up 60%

• COMP up 45%
• SNX, AAVE rose 10% to 30%

Part of it is fundamentally driven: Protocols like @MakerDAO are now generating over $200M in annual revenue

What does DeFi have to do with NFTs?

a lot of! First, it shows us how an industry can recover: by building businesses that actually generate revenue. Likewise, when the NFT industry recovers: I predict those connected to revenue-generating businesses will attract the most interest from investors. Whether it's stuffed animals like @pudgypenguins, or guilds and game operations, or marketplaces with fees, etc.

Additionally, remember that the 2021 NFT season started at the end of the 2020 DeFi summer? People are getting rich and can afford to show off their status value on JPG images. I expect a similar dynamic to emerge again.

Because, let's face it, when you become a crypto millionaire, those rare Pepe NFTs don't seem so expensive anymore.

! [DeFi] (https://img-cdn.gateio.im/resized-social/moments-40baef27dd-6d01238dd9-dd1a6f-1c6801)

In conclusion: I sincerely believe that those who stay vigilant during a bear market will be rewarded. Be patient, observe and persevere.