--News Direct--
A new report by Huobi Research Institute has highlighted the increasing attention the NFT market is getting from both inside and outside of the crypto industry; but the market also suffers from doubts about poor user experience, inflated prices and high volatility. To address these issues, a long-term plan is needed for NFTs to sustain its development.
Titled “Looking for the Eye of the Storm - NFT Price Analysis”, the report examines the current NFT market from the collectible and games sector, and how its future development will be shaped.
Since the second half of 2021, NFT has attracted vast attention, and has enjoyed several-fold market growth in a short period of time, thanks to the popularity of several top projects. Currently, the total market value of NFT is about US$18.42 billion, an increase of 42 times compared to one year ago. But as prices continue to rise, NFT's price volatility becomes even higher, and this remains a problem. The report explains several factors that will affect prices from the collectible NFTs sector: brand and celebrity, community construction, scarcity and the long-tail effect. As for game NFTs, the report provides detailed explanations of its value growth: lower transaction thresholds, property rights, and its high relevance to game projects.
While NFTs are gaining momentum, its pace has been slowing down since, and a plan is needed for long-term sustainability. First, the report suggests that NFTs need to increase its value support, which can be achieved by integrating NFTs with offline traditional industries to create a new “NFT+" model. The second is to build a professional community and increase its social value. To address high volatility, a derivatives market can be opened to hedge spot risks and a NFT pricing model can also be created. Lastly, NFTs also need to open property rights to improve its user experience.
“As more people pursue and appreciate NFT products, I think it is important we share more in this area, from digital collections and blockchain games to NFT+ to derivatives,” said Linhan Dong, Researcher, Huobi Research Institute and author of the report. “There are definitely many opportunities waiting to be discovered in the future.”
To download the full report, click here.
About Huobi Research Institute
Huobi Blockchain Application Research Institute (referred to as "Huobi Research Institute") was established in April 2016. It is committed to researching and exploring new developments in the global blockchain industry. Its goal is to accelerate the research and development of blockchain technology, promote its applications, and improve the global blockchain industry ecosystem. Huobi Research Institute covers industry trends, emerging technologies, innovative applications, new business models, and more. Huobi Research Institute partners with governments, enterprises, universities and other institutions to build a research platform that covers the entire blockchain industry. Its professionals provide a solid theoretical basis and analyze new trends to promote the development of the industry.
Contact Details
Ker Zheng
+86 139 2280 3249
Company Website
https://huobiresearch.medium.com/
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