Beyond the NFT Hype: The Need to Reinvent the Value Proposition of Digital Art

The true potential of NFTs lies beyond profile pictures and art and in solving real use cases , which implies the need to think about new ideas.

With cryptocurrency prices fluctuating this year, non-fungible tokens (NFTs) and other investors in the sub-ecosystem have also found themselves battling a bear market.

However, beyond the commercial value of Ether (ETH), NFTs were primarily created to represent assets and property in the real and virtual world. The bear market has therefore reignited discussions about how NFTs can backtrack and focus on use cases while the market recovers.

In a conversation with Cointelegraph, Tony Ling, the co-founder of the NFTGo analytics platform, shared insights into the NFT ecosystem, revealing the ecosystem's expected trajectory.

Cointelegraph: The rise in popularity of NFTs is often attributed to the variety of real-world use cases they can and have solved. What do you think of the NFT market crash? Do you think the market is about to recover?

Tony Ling: To answer this question, we must first explain the value basis of NFTs. Currently, the NFT market is mainly driven by four categories: art, PFP (profile pictures), terrain, and membership. Currently, the PFP is the most dominant. The value base of PFP NFTs mainly consists of three parts: financial products, collectibles/luxury items and memberships, among which financial products are currently dominant, while the NFT-derived model is still at a very early stage . Therefore, with the global debubbling of the crypto market, NFTs, as low-liquidity derivatives of fungible tokens (FTs), are bound to fall accordingly. This is to be expected.

However, I believe that as the crypto market recovers in 2023-2024, the value of NFTs may increase many times over that of the broader crypto market. Growth in its value will come from at least two aspects:

First, with the developers...