CoinMarketCap has summed up “another crazy year” in NFT – how to join the industry in 2023

CoinMarketCap published a thread on the results of 2022 in the sphere of NFT. The year was difficult: FTX crash, Celsius bankruptcy, 3 Arrow Capital collapse . All of this has affected the field of non-fungible tokens. How memorable it was and how to start in 2023 — let’s discuss further.

Another crazy year?

Experts of multi-chain NFT data aggregator CryptoSlam recorded that for the second year in a row on the eve of Christmas, the volume of NFT sales fell. To put it in numbers trading volume decreased: 

• from more than $24M on December 20, to $12M on December 25 in 2022;
• from $80.8M on December 20, to $12.9M on December 25 in 2021.

The fall in sales was strongly influenced by the actions of the U.S. Federal Reserve, which continues to raise rates and urges banks to do the same. In November, rates rose by 75 basis points (0.75 percentage point) to a range of 3.75% to 4 %.

For this reason, investors prefer to take less risk and buy less NFTs. However, even with the crisis, the market continues to develop. Here’s what’s interesting about 2022 

• NFTs have come to Instagram and Facebook. The question remains how the arrival of the Web2 giants will affect the NFT market. For example, if Instagram launches its own trading platform with non-interchangeable tokens, how will that affect OpenSea?
• The release of NFTs, even for good purposes, can be met negatively. For example, the WWF introduced a collection of “non-fungible animals,” but despite being launched to raise money for charity, has been criticized traditional conservation supporters reacted furiously, citing the emissions associated with generating NFTs.
• Celebrities are popularizing NFTs. Rappers Eminem and Snoop Dogg released a joint music video in support of one of Bored Ape Yacht Club’s most popular collections. Snoop Dogg already had his NFT avatar in the BAYC collection (#6723). The Eminem picture cost 123.45 ETH (~$148.5K) at the time of launch but now it costs 74.8 ETH (~$89.7).
• The British rock band Muse released their latest album in NFT format. There were 51K copies in the first week. We reported more about music non-fungible tokens here.
• Former U.S. President Donald Trump released his own collection. Each NFT was priced at $99. The tokens sold out in less than 24 hours, but fell in value by 72% in a week during the resale. The creators made an impressive $4.5M for the entire collection. Some users found out that Trump NFT collection creators stole the images of his trading cards from stock photos, such as Shutterstock. Other image sources include Walmart and Amazon products. Users have found watermarks on the NFTs that the creators didn’t manage to remove completely.

At the same time, there has been an increase in search queries related to NFT, which may indicate a growing interest in the industry. According to Google Trends, the score increased from 10 to 19 in the past 90 days (it was 100 at the end of January 2022). 

However, if the market is boring, investors will not buy anything, and the industry will die. For 2023 to be less “crazy” and for the industry to grow, there must be quality projects in the NFT world.

The most popular and rised NFT collections

Top-selling collections, including secondary sales online and new projects, as well as funds from the original NFT mint.

1. Bored Ape Yacht Club — $1.57B
2. Mutant Ape Yacht Club — $1.14B
3. Otherside — $1.1B
4. Azuki — $849.M
5. Moonbirds — $613.4M
6. CloneX — $600.5M
7. CryptoPunks — $575.2M
8. Doodles — $391.6M
9. Sorare — $318.1M
10. Axie Infinity — $291.1M

How to start your own NFT collection in 2023?

Speaking about nice NFT projects, the above-mentioned Bored Ape Yacht Club, CryptoPunks or Solana NFT ecosystem leaders DeGods and y00ts immediately come to mind. There are other cool collections behind them, but that’s not to say that the market is already crowded and you can’t take your place. Here are some tips for beginners.

 

1. Research your target market.
2. Earning customer trust.
3. Create memorable marketing messages.
4. Attend industry events.
5. Invest in social.
6. Focus on utility.
7. Build first, sell later.
8. Reward loyal customers.

And if you don’t know how to create an NFT, read our article. We also reported on how much it costs.