The world of NFTs has seen a lot of excitement and hype over the past few years, with many blue-chip NFT projects capturing the attention of collectors and investors alike. However, as the market has matured, many of these once-popular NFT projects have fallen from their previous all-time highs.
One of the main reasons for this decline is over-minting, a common issue in the NFT world. For example, Doodles, a popular NFT project, faced criticism for over-minting its tokens, leading to a drop in value and a move to the Flow blockchain.
Another factor contributing to the decline of blue-chip NFTs is the acquisition of successful projects by larger corporations. For example, CloneX, another popular NFT project, lost steam after RTFKT, the company behind it, was acquired by Nike in a record-breaking deal. This acquisition brought a lot of attention to the NFT world but also raised questions about the future of the project and its tokens.
In addition to these specific issues, the lack of long-term direction and utility is another factor contributing to the death of blue-chip NFTs. Time-based NFTs, such as VeeFriends and Proof, are confusing for users, as the utility of the tokens will eventually expire. This lack of clarity has made it difficult for these projects to maintain their popularity and value.
The general lexicon about humans being inherently fickle, the general lack of innovation and true utility, and the volatility of NFT projects in general are also contributing factors to the death of blue-chip NFTs. The NFT world is still in its infancy and is constantly evolving, making it difficult for projects to maintain their popularity and value over time.
NFT capitulation refers to a general decline in the NFT market, where the value of NFT projects decreases and investors sell off their holdings. This often occurs when there is a loss of confidence in the NFT market and a general perception that NFT projects are overvalued. NFT capitulation can also be caused by factors such as the saturation of the market, a lack of innovation and true utility, and the general volatility of the NFT market. The decline in value during NFT capitulation can result in a slowdown in sales and reduced interest from investors and collectors, leading to a contraction in the market. It is important for NFT projects to have a solid foundation and clear long-term direction in order to avoid or weather NFT capitulation.
Despite these challenges, the love for art remains a constant in the NFT world. Many collectors and investors are still drawn to NFTs for their unique ability to own and display digital art, making it a fascinating and ever-evolving market. The death of blue-chip NFTs is simply a natural part of the market’s evolution and will likely lead to the rise of new and innovative projects in the future.
while the death of blue-chip NFTs may seem like a negative development, it is simply a sign of the NFT market’s evolution and growth. The challenges faced by these projects serve as a reminder of the importance of long-term direction, innovation, and utility in the NFT world, and will likely lead to the rise of new and exciting projects in the future.
Flower83 had an interesting persepective on these projects. 👇👇👇
I got absolutely slaughtered by @KaijuKingz in the comments.
I have decided to teleport them in the zone between 3rd and 4rth row based on how strongly their community decided to raid my post and clown me 😂
— Flower83 (@Flower83_) February 4, 2023
Lack of real Utility is the main issue.
The lack of utility has been a major issue for many NFT projects, with many projects essentially functioning as fundraisers that plan on adding utility over time rather than having a fully thought-out product ready to go. This approach has led to a lack of clarity and long-term direction for many NFT projects, making it difficult for them to maintain their popularity and value. To address this issue, the next generation of NFT projects needs to focus on building utility into their products from the start. This requires a more thoughtful and deliberate approach, with a clear understanding of what users want and what the NFT project can deliver. Projects that prioritize utility and have a well-defined purpose and direction are more likely to be successful and to attract and retain users over time. The NFT market needs a new wave of projects that truly understand the importance of utility and are ready to deliver it from the start.
Which NFT projects will get a second Life?
Despite the initial hype surrounding NFTs, there still aren’t enough people invested in the market, and with limited time and attention spans, everyone is always looking for the next shiny object. This, combined with waning interest, is the death of many NFT projects. The NFT market is still in its early stages and is highly volatile, making it difficult for projects to maintain momentum and attract new users. As a result, many NFT projects lose their shine and eventually fade away. It will be interesting to look back in five years and see which NFT projects have stood the test of time and which ones have been reborn in some form. The NFT market is constantly evolving, and it will be fascinating to see which projects have the staying power to endure and which ones will ultimately become part of the NFT graveyard.