The world of digital assets has grown impressively over the past few years, as the industry expanded way beyond traditional cryptocurrencies. Non-fungible tokens (NFTs) are certainly one of the major trends of 2021 and while many might think this market is a passing trend, there is actually high growth potential in the long run around it.
According to experts working for Metabase NFT, a platform dedicated to buying and selling of NFTs, there are several factors that can drive this market even higher.
Vast interest in NFTs
Some figures released by Chainalysis suggest the NFT market has already reached $40 billion in aggregated capitalization. That’s where platforms like Metabase NFT, which offer access to NFTs at a time when users are looking for affordable ways to get involved in this industry, come into play.
“With growing interest projected to expand further, we believe the wider public should be able to access these opportunities,” explained one of Metabase NFT’s expert analysts. “That’s why we’ve put our best minds into the task of creating the most ideal platform available today, relying on an intuitive interface and a simple user experience.”
Scarcity at a time of lower fiat purchasing power
Compared to traditional cryptocurrencies like Bitcoin or Ethereum, NFTs are scarce assets and because of that, their valuation can go higher in the long run. Traditional art, for example, has been outpacing other leading indices such as the S&P 500, the most popular stock market index in the USA.
An NFT grants ownership over an underlying asset and its owner benefits from a high level of security. That is why NFTs as an alternative form of investment are becoming a new normal quickly , given that the purchasing power of fiat currencies is expected to diminish even further.
Inflation is high all around the world, reaching double-digit figures in many developing countries. For that reason, today’s investors need an easy-to-understand solution for investing in alternative assets. Metabase NFT currently offers this type of solution, with the projection that over the next few years, its market cap is only going to grow.
Can the market really continue to expand?
NFT valuations have retraced from the highs of the first quarter of 2021, which is only natural, since there was a general global setback. Technology companies and cryptocurrencies have been under pressure, so this retracement does not necessarily mean the end of the bullish trend.
As a market still developing, volatile valuations are natural. Experts working for Metabase NFT think that it’s definitely possible for the NFT market to expand towards $80 billion in capitalization by 2025. More users joining the market and committing capital can offer alternative investing avenues.
No industry has ever evolved in a straight upward-sloping line and drawdowns can turn out to be major buying opportunities. NFT valuations should not be regarded as an exception and now that prices are easing a bit from all-time highs, it is actually a good thing for buyers, since they can find great value in NFTs with long-term growth potential.