The Cause of the Declining Trend of NFT
In the last few months, NFT has decreased. According to analysts and legal practitioners at the Frans & Setiawan Office, Hendra Setiawan Boen said the war between Russia and Ukraine resulted in disruption of economic movements in Europe and an increase in loan interest rates so that inflation was relatively high.
In recent months, investors have tended to sell risky assets, such as assets that do not have solid fundamentals or underlying, such as cryptocurrencies or NFTs. The declining interest in NFT is in line with the purchase value of NFT. The first tweet was Jack Dorsey, the founder of Twitter, from a purchase value of 2.9 million US dollars and last April to 280 US dollars. The price of the tweet is down 92 percent from the initial cost.
However, some people argue that it’s not because of the Fed’s policy that the price of this cryptocurrency has fallen but because of investor concerns about fraud and the failed hype of several NFT projects. In addition, there is the supervision of NFT regulations by securities and exchange commissioners. Indeed, until now, the determination of the value of NFT assets does not have the same fundamentals as crypto. The popularity of an NFT artist is still considered an essential thing in determining the value of an NFT asset or digital asset.
Can NFT Rise Again in the Future?
After the decline in this trend, will NFT be able to survive in the future? This question is often used as a reference for investors to save assets in NFT.
Based on the aspect of utilities, this NFT will be used as a new feature in several social media applications, and furthermore, this NFT can be in the form of audio. Basically, art is not just an image, and the work is not only in the form of visualization but in the form of sound, which is also included in art and creations. The following is a review of the upcoming development of NFT:
1. New Profile Picture will Appear as NFT on Spotify
What happens if our profile photo on Spotify can be in the form of NFT. Can it be sold or just as a promotional medium? As reported on the TechCrunch page, Spotify is testing a new feature that allows artists to promote their NFT on a profile photo. Testing this new feature is only available to certain Android users in the United States.
“Spotify is currently testing its new feature, which is projected to help a small group of artists promotes their NFT offerings on the Spotify platform as their third party through profile photos,” said a Spotify spokesperson.
Some of these tests, in the end, opened a new breakthrough in the form of a more comprehensive experience. The user of Spotify will be able to see a preview of the NFT via the profile page. Furthermore, users can buy it on external marketplaces like open-sea and Spotify for free, so small artists can promote it free through the Spotify platform.
2. New Featured on Instagram Support Local Creator and NFT Collector
After the presence of a new feature in the form of reels, now Instagram does not want to be outdone by releasing its latest feature for creators, namely being able to share photos and videos in the form of NFT. By following the blockchain technology trend, now creators can take advantage of Instagram’s new features as their income.
Instagram directly acts as an NFT marketplace where users can buy digital collections, art, images, videos, and music as NFT tokens or Non-Fungible Tokens. However, this feature is still limited. Only selected creators can share their digital collections on Instagram.
“At Meta, we are constantly working on the latest breakthroughs for creators on our platform, so we can continue to assist them in creating more monetization opportunities and bringing NFT to a wider market.”
Some features that support digital collections include digital wallets or wallets. Once connected to the wallet, creators and collectors can choose NFT from their digital wallets. Furthermore, for next feature is sharing digital collections. Creators and collectors can post their digital collections and add detailed information about NFT. The digital collection will later display a sparkling effect.
Finally, there is also an automatic tagging feature for creators and collectors. This feature serves to auto-associate their digital collection posts.
3. Audio NFT
Ultimately, the rise of “audio NFTs” comes at a time in which there are more questions than answers about them. Culture and crypto investors alike will be eager to see how things develop from here. Especially given that, no matter how you slice it, “audio NFTs” is shaping up to be an entirely new type of NFT.
Big industry players from both the blockchain and music worlds have already taken note of the potential of audio NFTs. Groovebox, a company based in New York looking to bring “automation to the music industry,” has released Blocsoniq, an Ethereum blockchain-based game that lets musicians create their own music ecosystem by developing NFTs.
Meanwhile, companies like Ethervision are working on bringing audiovisual content onto the blockchain by utilizing non-fungible token technology. In other words, these seemingly disparate worlds are coming closer together, with exciting implications for the future of music.
Overall, the audio NFT space will be exciting to watch moving forward. Can NFT audio get hype again like the previous NFT trend? we will wait & see.
Summary
The NFT trend is indeed going down but will this downward trend continue, or is this not trend just seasonal? Some points of view may be this NFT will be able to go up again, but it won’t be the same as before. But based on the historical bitcoin chart, it is necessary to have a “bitcoin halving” to confirm the upward trend. The question is whether NFT can survive until the “bitcoin halving”? We can’t answer that yet. However, if you have questions regarding the development of your NFT project, we can answer them below.
