As the SEC takes a tough stance on securitized NFTs, the NFT (Non-Fungible Token) market is witnessing a transformation with a growing emphasis on utility.
The NFT market has seen a substantial decline in NFT prices, resulting in floor prices plummeting to zero in some cases. This has led to discussions suggesting the demise of NFTs, with an alarming 95% of collections within the industry now perceived as having no value.
According to a report by dappGambl, out of the 73,257 NFT collections examined by the publisher, a staggering 69,795 of them have a market capitalization of 0 Ether (ETH).
However, despite some collections seeing their market capitalization drop to zero, brands and creators in the Web3 space continue to launch new collections, this time with a focus on utility. They aim to engage and retain their communities for more extended periods by offering tangible benefits.
In the heyday of the NFT industry in 2021 and early 2022, many participants entered the market driven by the fear of missing out (FOMO), resulting in collections lacking long-term sustainability.
However, like most industries, those who enter without a clear plan, merely following the crowd, often fade away over time. In contrast, the pioneers of NFT Profile Picture (PFP) projects, such as the Cryptopunks NFT collection, continue to thrive and hold their ground, serving as a testament to the enduring value of thoughtful and innovative NFT projects.
