Following the big crypto fall on Wednesday, the global market size has returned to the $2 trillion valuations. The market leaders, Bitcoin and Ethereum, have lost ground, losing 7.72 percent and 9.28 percent, respectively, throughout the day. On December 5th, the DeFi space, which was quietly building steam to begin the New Year rally, suffered a market meltdown.
NFT-based tokens, on the other hand, are declining. The total NFT Tokens market cap fall by more than 8.85 percent in the last 24 hours. As quick improvements are likely to flood the floor in Q1, tokens constructed on it will flourish to new highs.
What are NFT Tokens?
Non-fungible tokens, or NFT Tokens are cryptographic assets on a blockchain. They include distinct identification codes and metadata that distinguish them from one another. Unlike cryptocurrency, you cannot trade or swap them at equivalency. This is in contrast to fungible tokens, such as cryptocurrencies. They are identical to one another and may thus be used as a medium for economic transactions.
Each NFT’s unique structure allows for a variety of usage scenarios. They are, for example, an excellent vehicle for digitally representing actual assets such as real estate and artwork. NFTs, which are based on blockchains, may also be used to eliminate intermediaries and link artists with audiences, as well as for identity management. NFTs have the potential to eliminate intermediaries, simplify transactions, and generate new markets.
Why should NFTs Lead The Upcoming Bull Rally?
- The NFT Tokens market is predicted to grow rapidly through 2022. It is expected that the music, sports, and entertainment industries will establish a mature business strategy. Furthermore, attention in the NFT gaming arena will shift to UX and UI.
- As new use cases emerge that outperform the top art, collectables, and games, NFTs will gain momentum with a bigger user base.
- NFTs will expand beyond jpegs, and well-known IT companies will establish their own.
- Enhance and maintain brand loyalty.
- As new features make NFTs more popular in the entertainment and sports industries, cryptocurrency will become more widespread than ever.
Looking for an NFT Token?
NFT-based protocols such as Axie Infinity, Decentraland, and The Sandbox are set to take the spotlight in the first quarter, beginning next week. Along with the AXS price, the MANA and SAND prices are trading near-critical bottoms from which we may predict a major breakthrough.
Axie Infinity’s RSI factor has already touched an all-time low of 29.16 on a one-day chart from a trading perspective, signalling massive sell-offs. Even though the price is trading at a multi-month low of $74.42, a strong breakthrough would significantly boost the price movement in the coming weeks.
Mana and sand, on the other hand, have also lost ground due to massive sell-offs. However, the correction might last into the weekend. Once traders begin to accumulate bottoms, the aforementioned cryptocurrencies have a strong chance of seeing massive price rebounds.
Emerging NFT user cases will become the leading segment of the market in Q1. NFTs will flourish in their search for new utilities, with NFT-related infrastructure projected to be the most active zone of change. As a result, after the market downturn is over, we should expect a significant surge in the industry.