NFT Trading Is Ice Cold But Developers Are Still Hot for Web3

The NFT (Non-Fungible Token) trading market is currently experiencing a slowdown, with reports indicating a decline in trading volume and NFT sales. Despite these challenges, developers remain enthusiastic about Web3 technology and continue to explore its potential for broader use cases.

Here are some key points from the recent developments:

NFT Trading Volume Decline: According to reports, NFT trading volume dropped by 41% in the second quarter of 2023. This decline is attributed to a tapering off of new entrants and a need for NFTs to explore new use cases beyond their initial JPEG representations.

NFT Sales Slowdown: Another report indicated that NFT sales decreased by nearly half from January to July. Notably, the floor prices of well-known NFT collections also dropped to two-year lows, signaling reduced interest among traders to pay premium prices for these collections.

Polygon NFTs and Web3 Development: Despite the overall decline in NFT trading, Polygon NFTs continue to perform well and maintain a significant share of all trades in July. Web3 developers remain committed to deploying smart contracts across EVM-compatible chains, indicating ongoing interest in decentralized applications and broader Web3 use cases.

Etihad Airways' Web3 Loyalty Program: Etihad Airways plans to launch a Web3 loyalty program called "Horizon Club." NFT holders within the EY-ZERO1 collection can stake their NFTs for miles, offering the opportunity to redeem rewards such as flights and upgrades. This move aligns with the trend of major brands adopting blockchain technology and NFT rewards for loyalty programs.

Non-Profit for Ordinals Protocol: The Ordinals protocol, which allows NFTs to be added to the Bitcoin blockchain, is establishing a non-profit organization called the Open Ordinals Institute. This initiative aims to ensure that developers are compensated while maintaining the protocol's neutrality and avoiding corporate influence.

NFTs as an Area of Growth: The Open Ordinals Institute aims to support the growth of Bitcoin-based NFTs and encourage broader adoption of the technology. It highlights the increasing interest from various Web3 ecosystems in building Ordinals infrastructure, indicating the potential for NFTs to expand beyond their current applications.

Despite the challenges in the NFT trading market, the ongoing interest and innovation within the Web3 space suggest that developers and stakeholders are committed to exploring new avenues and use cases for blockchain tokens and NFTs.

#Web3.0 #NFT #Blockchain #Crypto #Cryptocurrency #AI #Metaverse #OpenSea #AR