Opinion: Why do top traders firmly believe that NFT has another round of bull market?

Before we get down to business, let’s make one thing clear: NFTs will continue to exist despite a temporary dip in the market. Market volatility is normal, and the crypto industry has gone through similar cycles. Alright, now let’s get down to business and explain why another NFT bull run is on the horizon.

At this stage, we do see some negative performance in the market, such as:

1. NFT prices fell sharply.
2. NFT trading volume continues to decline.
3. The total number of NFT users has also begun to decline.

However, NFT will never die as some people say, because the market cycle itself is natural. If there is a bull market, there must be a bear market.

The rise of the L2 network will drive the NFT market to rise again

Remember CloneX, Moonbirds, and Doodles, the so-called blue-chip NFT projects whose floor prices once exceeded $80,000? Now they all have floor prices below $5,000. The core of NFT is a digital collection, some of which are practical, but its main value comes from IP + community. Now there are more and more NFT projects, and this number will only increase before the next bull market, and the Liquidity will be more Allocation among multiple projects. For most NFT projects, the "cake" that can be distributed will become smaller and smaller, even if the entire cake pan becomes larger.

But it should be noted that it seems to be human nature to collect things, whether it is physical objects or digital collections, so NFT will not disappear, but the NFT market dominated by expensive projects is likely to change in the future, and mass adoption may be achieved through more Cheap NFT implementation, Reddit is a good example, and they also boldly try to promote popular applications through L2 (Polygon), after all, it is meaningless to pay $10 for a $50 NFT.

There is no doubt that the second-tier solution will play a vital role in the NFT market, because L2 will reduce costs and increase transaction speed, making NFT collections available to everyone, such as y00ts is another typical example of benefiting from L2.

However, as more and more users flood into the NFT market, even if most people will collect lower-priced NFTs, it will also push up the prices of some NFTs to a certain extent, just like different cars, watches, As well as other collections have different price ranges, so does NFT.

Based on the above ideas, the next NFT bull market cycle is likely to have some decentralized Liquidity projects, which will lead to a more balanced and stable market, and a diversified ecosystem is more beneficial to content creators and NFT holders.

What the next NFT cycle will look like

But as the NFT space moves forward, there will be new content creators and traders entering the market, which will then drive innovation and growth. In fact, this transformation has already begun to occur, and this continuous change is actually a healthy one. , Mature, unlimited potential market symbol.

For the next bull market, projects with real value and long-term potential will flourish, while short-term hype will not achieve long-term results, so which NFT projects do you need to pay attention to and hold for a long time? In fact, a good NFT project usually has three elements:

1. Has strong fundamentals.
2. Active project founder.
3. Passionate community.

The true value of NFT lies in its innovation, execution, creating unique experiences, and prioritizing the community when going through difficult times. Frankly speaking, many amazing projects have encountered "Waterloo", so choosing NFT projects requires wide eyes. On the other hand, the market will be smarter, and at the same time we may see crazy floor prices again, maybe even higher than last time, but not every project will pump as crazy as last time, maybe there will be new NFT The project will be the champion of the next cycle.

So, which projects will be the winners in the next cycle? Having a Web2 audience doesn't matter right now as fewer and fewer people will pay $10,000 for a jpeg. In this case, future projects that appeal to both Web2 and Web3 audiences can trigger the next NFT bull market by generating higher exposure, and the resulting growth will transform the NFT space as these two worlds combine. More importantly, new NFT projects in the next cycle will benefit from the lessons learned from previous projects, resulting in better and more innovative initiatives. This positive cycle of improvement will drive the NFT market to continue to develop, Even attract more Web2 giants to enter the market.

Furthermore, today's increasingly digitized world is a clear indication that NFTs will be a part of our lives in the future, and we can see a surge in NFT use cases in several areas such as:

• game
• Ticketing
• real estate

As the popularization and application continue to expand, NFT technology will also be further verified and promoted. Don't forget that the nature of human beings who like to collect will drive us to continue to pay attention to this emerging field . The excitement, optimism, and FOMO surrounding NFTs will also inevitably spark another bull run, which in turn will push the market to another new height - which is why NFTs are far from dead, and we will definitely see another bull run, although it will take some market conditions, but the field will continue to develop and mature, and as NFT technology advances and more people enter the market, the future of NFT will only get brighter.

Five-point summary