Love ’em or hate ’em, NFTs can survive thanks to the communities that drive them.
NFTs have faced ridicule, scams, and a dip in demand during the crypto winter. Some may argue that some projects in the space continue on purely through hope and dreams. Yet, despite these challenges, the sector has persisted, and recent momentum in the crypto market has sparked interest in NFTs once again.
While NFTs may be synonymous with silly apes, rocks, and JPEGs that sell for millions, there is a widespread belief in the industry that there is significant underlying value in the concept and its various use cases. According to Ilja Moisejevs, co-founder and CEO of NFT marketplace Tensor, “NFTs are just cultural artifacts of crypto at this point. When people have fun, it’s easier with a JPEG than just a token.”
Despite the monetary value attached to NFTs, most people are holding onto their digital assets regardless. Yat Siu, co-founder and executive chairman of Animoca Brands, believes that there are deeper motivations for this persistent ownership. He explains, “Making money from NFTs validates their holders’ conviction, but there are more important factors at play. Similar to the reason people buy diamonds, there is a sense of value in investing in NFTs because it enhances social standing and makes users look good.”
Moisejevs agrees, stating, “Some NFT communities are essentially just like fraternity clubs: people having fun with similar interests. NFTs simply amplify this experience by bonding them together. You either lose money together or make money together.”
It appears that more people are eager to join the “make money together” group. In the past 30 days, there have been approximately 120,000 more NFT buyers than sellers, and sales volumes have increased by 72.7% to around $1.66 billion, reports NFT aggregator CryptoSlam. This surge in activity suggests that NFTs may have the staying power to survive any challenges thrown their way, thanks to the strong communities that drive them.
