2 - 4 minute read
The rise of non-fungible tokens (NFTs) caused a lot of hype last year, but now it appears to have settled down. According to Jeff Garzik, a former Bitcoin Core developer and co-founder of software development company Bloq, the NFT market is pleasantly down to Earth again. Despite a downswing in trading volume during March, the NFT market had a 137% increase in trading volume during the first quarter of this year.
New and emerging online marketplaces such as Blur led a substantial increase in the overall trading volume during the ecosystem’s first quarter. Garzik said projects like Blur are “fantastic” in that they will drive market competition, and are likely to “force other competitors in the market to improve and to get better.”
Quoting Garzik, he said that a lot of the NFT hype appears to have finally “burned off,” and users now are looking for NFTs that can provide real utility, something that users can engage with and that will attract their attention.
Garzik’s take on the NFT market suggests that traders should remain cautious with their investments in NFTs. The market appears to have calmed, but the unexpected rise in trading volume during the first quarter should still require traders to be conscious of where they put their money. Projects such as Blur may present opportunities for traders, but they should still carefully evaluate the investment’s potential impact on their portfolio. The market competition being driven by Blur and other online marketplaces could pose a risk or opportunity for traders depending on how they play the game.
The Bottom Line
Jeff Garzik, the former Bitcoin Core developer, suggests that the hype surrounding NFTs has finally subsided, and the market is pleasantly down to Earth once again. Trading volume during the first quarter of this year saw a 137% increase, with emerging marketplaces leading the charge. Projects such as Blur may present opportunities for traders, but they should remain cautious with their investments. The market competition could pose a risk or opportunity depending on how traders play the game.
