2021 saw an unprecedented rise in the NFT trend from all over the globe. More than a million NFT projects were launched, and the industry soon assumed a billion-dollar form. However, the rise was as quick as the fall. This is the end of the year 2022, and we are already experiencing one of the worst downtrends of the crypto and NFT market. It commenced in the crypto market, where the value of some of the cryptocurrencies started plummeting. The NFTs soon followed suit, with many million-dollar NFTs reduced to the value of several thousand dollars or even less. This led to many investors and traders selling their potential projects at throwaway prices and liquidating all their digital assets.
The Bear Market Trend - Killer of NFT Market
For the investors and the traders who had just begun learning the craft of crypto and NFT, this was a very disheartening occurrence. In case you don’t know, this downtrend in prices and the trend of values jumping off the cliff is also called the bear market trend. Considering this is the first bear market the NFT industry has ever faced, it can urge some NFT players to go for the first sale opportunity and leave the space with some quick buck. Some of them are even contemplating returning to their old job-based lives.
However, there is still a silver lining in the cloud. How? That’s what this article is all about.
One of the first things that you should notice is the sharp decline in NFT prices as well as the crypto market points back to the year 2017 when the downtrend occurred. In 2021, the market once more rose from the rising water and swam to new highs. Now, it is once more facing a downtrend. However, looking at the recent past, it is safe to assume that this will not be the end of the NFT or crypto market.
Therefore, all the investors are advised to keep a cool head and don’t act irrationally, which is quite an easy thing to do currently. Of course, being rational doesn’t equate to being extremely hopeful. In truth, this bear market will potentially kill many NFT projects. However, considering the “starving winters” of the market won’t last forever, many projects will rise once more.
There is Still Hope - The Silver Lining in the Cloud
The first silver lining has already been discussed, which is that the downtrend doesn’t last forever. Crypto rose again from the 2017 crash, and it will rise once more. Since the NFT market is closely associated with crypto, it will follow suit. However, there are a few points worth contemplating. First, the hype that shot the NFT growth off the charts was mostly based on collectibles which were kind of like collectible JPEGs in the blockchain universe. It also led to short-term value.
NFTs have one strength that can ensure their long-term value and do away with all the bitter debates over their real worth. And that is the power of the community. Community spirit is one of the most powerful aspects of this industry, one that is also an essential part of Web 3.0 and the metaverse.
The NFTs that resonate strongly with the community are utility-based NFTs. These are the real silver lining in the cloud of the bear market, and they are still fairly valuable, urging the investors not to give up just yet.
Why You Would Want to Double Down on Utility-Based
One of the best ways you can survive this bear market is by investing your hard-earned money in the NFT that provides a proper utility beyond its digital value. Most of the utility-based projects in the market are pillared by exceptionally robust communities that can break their fall. Community is a vital part of any NFT project’s success. Naturally, this bear market is there to lead to a culling of NFT projects. Communities that are only in it for money will not make it far. Only the communities set on innovating and bringing useful technologies to the table will thrive. Some investors and debatable figures have gone as far as proclaiming that the bear market will kill off everything that doesn't provide real-world value.
Utility NFTs provide their holders access to a particular service on a blockchain platform. Community is important for utility-based NFTs in two ways:
The importance of community in utility-based NFTs cannot be overstated. Community members routinely rank as “investors” in terms of generating value for the token’s long-term success due to their involvement with network maintenance and development.
It is an interesting fact that both the communities and the utility-based NFTs sustain each other. NFTs that provide utility also offer a lot of other real-world benefits to the community. These NFTs have the potential to attract fresh investments, ones that are based on real-world applications and not just on the digital asset value. The community, on the other hand, continues to support the NFT despite the bear market. It also keeps its value revitalized, ensuring not only its survival but also its success.
SHE NFTs – The Ultimate Utility-Based NFTs
If you are actively seeking utility-based NFTs, your search has come to an end. These NFTs are exceptional both in design and utility. Each NFT is the work of a talented artist, offering more than just its digital value. There is a thriving community at the heart of these NFTs that sustains their long-term value.
As investors are navigating through the bear market, utility-based NFTs are the only tip for survival. NFTs like SHE NFTs are taking the game to the next level through innovative yet powerful artworks with practical applications.