Currently, we are going through quiet months in the Non-Fungible Token market as the prices of Non-Fungible Token collectibles are seeing deep discounts and there is no such activity driving market growth. In this article, let's find out where we are in the Non-Fungible Token Bear Market with Hak Research.
Before jumping into the article, everyone can refer to some of the following articles to better understand
What Is Non-Fungible Token Bear Market And Non-Fungible Token Bull Market?
Similar to the financial market in general, the Non-Fungible Token market also witnessed two different extremes: Bull Market and Bear Market. In particular, Non-Fungible Token Bull Market refers to the bull market, which is the time when most Non-Fungible Token collections witness good growth and extremely optimistic psychology in the market.
Investors excitedly Chia with each other about the profits earned, collections witnessed hot growth and continuously created information that caused fomo for users, media sites reported a lot of positive information. Positive about the Non-Fungible Token market. Looking inside the Bear Market, everything about the market is good and the number of new people entering the market increases every day.
Non-Fungible Token Bull Market and Non-Fungible Token Bear Market
In the Non-Fungible Token Bear Market, we are seeing deep discounts on many Non-Fungible Token collectibles and big FUD from Azuki , Bored Ape Yacht Club (BAYC) , etc. as seen by everyone over time. recently. This in turn scared investors and made them Dump their Non-Fungible Token , causing Non-Fungible Token prices to drop even further. A characteristic feature of the Non-Fungible Token Bear Market is that the volume is extremely low due to depressed psychology, causing very few investors to want to trade in the market.
In addition, major newspapers talk about Non-Fungible Token with negative information. Recently, Watcher.Guru - a large media company in the Crypto market had an article saying that "95% of the Non-Fungible Token market is currently worthless” and points out the point that in the market there are 73,257 Non-Fungible Token collections, there are 69,795 Non-Fungible Token collections with a value of 0 ETH. All of this creates a negative and depressing sentiment that pervades the entire Non-Fungible Token market.
Where Are We In The Non-Fungible Token Bear Market
At the moment, we are definitely in the Non-Fungible Token Bear Market but the question is, what stage of the Non-Fungible Token Bear Market are we in? Is the beginning of the Bear market or is it the end of the Bear market and preparing to welcome the market into a new phase, the Non-Fungible Token Bull Market. I will make an assessment based on some of the following data:
Statistics on floor prices of Blue Chip Non-Fungible Token collections from ATH until July 2023
This is price statistical data of Blue Chip Non-Fungible Token collections from ATH to July 2023. We see the prices of most collections witness a deep decrease of 80% to 97% compared to the ATH achieved in May 2022. Since then, most collections have seen price drops accompanied by a decrease in market volume . This proves that the Non-Fungible Token Bear Market has been formed since May 2023, but at that time, people's psychology was still excited so they did not realize that the market was starting to enter the discount phase.
Because this is the first time we have witnessed the winter of the Non-Fungible Token market, I will take data from the general Crypto market to apply to the Non-Fungible Token market as follows: The Crypto market will Dip after more than 1 year ( 12 to 14 months) since reaching ATH. At this point, it has been more than a year since the Non-Fungible Token market peaked, so it is very likely that the Dip of the market is now.
Another piece of data for me to confirm about this is that we have gone through Bored Ape Yacht Club's (BAYC) FUD regarding supply dilution, Azuki's FUD related to the launch of Azuki Elementals and also Degods' related regardingDegods Season 3 . After each FUD we see the price reduction of Blue Chip Non-Fungible Token collections gradually decrease. This proves that the selling pressure in the market has exhausted and we are gradually reaching the end of the Bear Market season in the Non-Fungible Token market.
Some Featured Collections In Non-Fungible Token Bear Market
So the question is, which collection stands out in the current Non-Fungible Token Bear Market?
Here are 3 Non-Fungible Token collections that I found outstanding recently and could lead the market trend in the near future. Let's find out!
Pudgy Penguins - Expanding the brand towards traditional markets
Pudgy Penguins is a collection of 8,888 Non-Fungible Token with images on each Non-Fungible Token of extremely cute cartoon penguins. Unlike many other collections that focus on building web3 communities on Discord and Twitter, Pudgy Penguins chooses a very unique direction.
Pudgy Penguins Non-Fungible Token
That is focusing on Instagram by creating videos and images of extremely cute penguins. This has been shown through the number of followers on Instagram of more than 800k Followers, proving to be completely superior to other media channels such as Twitter or Discord.
This also helps Pudgy Penguins attract a large fan base not only in the Non-Fungible Token market but also from the real world. Many people don't even know about the Pudgy Penguins collection, they just love the chubby, cute penguins from the pictures or videos they XEM .
In addition, we must recognize the talent of the Pudgy Penguins development team, especially Luca Netz - CEO of Pudgy Penguins. Since buying Pudgy Penguins for 2M USD, Luca Netz has had extremely suitable branding strategies for Pudgy Penguins and when they saw the opportunity was right, they launched Pudgy Toys to sell physical toys online. Amazon.
Pudgy Toys was an immediate success when all physical toys were sold out in the first days of sale. Up to now, total revenue from selling Pudgy Toys toys has reached more than 10M USD since opening for sale in May 2023. At present, Pudgy Toys is not only limited to the Amazon market but the Team is promoting coverage in some new markets such as Malaysia.
The above successes also help the floor price of Pudgy Penguins have superior growth performance compared to other collections. According to data compiled by NFTGo on floor price statistics of Blue Chip Non-Fungible Token collections from November 2022 to August 2023.
Floor price statistics of Non-Fungible Token Blue Chip collections
Looking at the data above, we can see that only Pudgy Penguins had its floor price increase during this period, while the majority of Blue Chip Non-Fungible Token collections saw deep price drops. This shows the extremely promising future that Pudgy Penguins can bring to the Non-Fungible Token market.
Bored Ape Yacht Club (BAYC) - Access to the GameFi and Metaverse marketplaces
The second collection that I want to introduce to everyone on this list is Bored Ape Yacht Club (BAYC). Despite going through the Non-Fungible Token Bear Market, BAYC Non-Fungible Token still maintains its status as the collection with the largest monthly volume on the market at the present time.
After a golden period in 2022, the Yuga Labs development team expanded the user base through the development of Metaverse Otherside and created a fever in the sale of Otherdeed land or the game Legends of the Mara was built. Built in Metaverse Otherside will release Open Beta version in September 2023.
However, one thing that I find dissatisfying is that the games built by Yuga Labs to create more Use Case for BAYC Non-Fungible Token have been going on for too long and there is still no official mainnet date. This makes fans very frustrated and causes the market share of BAYC Non-Fungible Token volume to clearly decrease in recent times.
Recently, Yuga Labs is making efforts to bring BAYC Non-Fungible Token back to the track as Yugaverse IP helps BAYC Non-Fungible Token holders have intellectual property rights to create physical products with BAYC printed on them. Non-Fungible Token in the real world, the ApeFest event taking place in Hong Kong in November 2023 or recently the AIP-297 proposal was passed to allow DAOs to use 12M Ape to buy Non Fungible Tokens in the Yuga ecosystem Labs for display in museums.
Mocavese - The face of Animoca Brands in the Non-Fungible Token market
The last project I mention on this list is Mocaverse - a collection of 8,888 Non-Fungible Token developed by Animoca Brands. Mocaverse was born with the purpose of connecting members of Animoca Brands, partners and projects in the company's ecosystem into a strong community.
Mocaverse Non-Fungible Token
Since its launch in March 2023, Mocaverse has continuously made updates to upgrade its ecosystem such as launching Moca XP - a scoring system through user interaction activities such as: Staking Moca Non-Fungible Token, join the Mocaverse ecosystem experience, build a community on Discord or Twitter. The development team has also launched many programs and games for users to use their earned Moca XP such as: Mocana Odyssey Cosmic Hunt,...
Recently, Mocaverse has also successfully called for 20M USD, along with launching Moca ID - a decentralized identity system. Moca ID will Vai as proof of identity and accompany users across various products, allowing users to build their reputation across the entire Mocaverse ecosystem.
Being XEM the face of Animoca Brands in the Non-Fungible Token segment and what it has done in the past. Mocaverse is one of the extremely promising collections and everyone needs to pay attention in the near future.
The Future of the Non-Fungible Token Market
Even though the Non-Fungible Token market is in the quiet phase of its first winter, we still see innovations and new technologies constantly appearing on the market. From the Redeemable Non-Fungible Token standard that allows users to Fungible their Non-Fungible Token with a real-world physical asset to the emergence of the promising ERC 6551 standard that allows each Non-Fungible Token to be like a cryptocurrency wallet and contains other assets.
But in my opinion, projects need to come up with more Use Case for Non-Fungible Token than simply allowing Non-Fungible Token owners to join private Discord groups, receive Airdrop from sub-collections, etc. This will create an unsustainable growth model and will gradually reduce the appeal of the collection over time.
There are two development directions that I find suitable for collections at the present time:
Access to the Web2 market
This will guide the collection development towards branding. This approach is quite difficult because it takes time and appropriate strategy to attract a large number of potential customers so that selling physical products is extremely easy like what Pudgy Penguins has done.
In addition, there is an easier way for Doodles to cooperate with Crocs (a famous global footwear brand) to display Doodles images on Crocs shoes. This will also help increase the value and brand of Doodles through becoming more known.
Overall, this development direction is a roadmap for building and developing brands from the Non-Fungible Token market to real-world application. As the brand of the Non-Fungible Token project is gradually asserted, the value of each Non-Fungible Token in the collection will certainly increase significantly from user awareness and always create a potential buying force that increases the price of Non-Fungible Token.
Combined with a number of segments in the Crypto market
At the present time, I see there are many ways that projects can apply to increase the Use Case of Non-Fungible Token in their collections.
- Non-Fungible Token combined with DeFi: This is a model that has been adopted by several collections such as: Llamas founded a DAO and used revenue from the initial Non-Fungible Token sale to buy CRV, CVX for farming and return profits for Non Fungible Tokens holder.
- Non-Fungible Token combined with GameFi: This is a model that is very familiar to users in the market. Projects can create games or partner with third parties to have their Non-Fungible Token collection used in that game, increasing the demand for Non-Fungible Token in the collection.
- Non-Fungible Token combined with SocialFi: Non-Fungible Token collections can take advantage of major SocialFi platforms on the market at the moment such as: Lens Protocol, CyberConnect to create a miniature social network platform that only allows holder New Non-Fungible Token may be involved.
summary
Although at the present time, the market is going through an extremely cold winter period. But with the continued development of the market, we can expect an upcoming boom that is much larger than the past 2021 and 2022 period. Above is all the information that I want to introduce in this article, hope everyone will receive useful knowledge.
The post Where Are We in the Non-Fungible Token Bear Market appeared first on HakResearch .
