Creators Are Gaining More Value Despite The Decline In The NFT Space

The start of the NFT craze was primarily driven by the discovery that digital assets could be scarce. Last year, non-fungible tokens (NFTs) rose in popularity and sales, with several records broken. Early adopters were the major beneficiaries of the NFT craze because the tokens appreciated significantly and unprecedentedly. At the time, CryptoPunks were selling for as high as $170.000 each.

The NFT Craze Has Died Off

Speculation was the major driving force, as many believe the price of the NFTs would keep going high. But one of the major determinants of the value of an item is utility. Once the utility is lacking, there is no guarantee that its price will remain high, as was proven by the end of the NFT boom.

In January this year, the trading volume of NFTs was $17 billion. But it started a massive nosedive a few weeks later and came down to only $466 million in September. However, the staggering 97% drop occurred at the mists of rising inflation and high-interest rates, which are the same factors that affected cryptocurrencies and stocks.

Although the hype has died off, brands, investors, and creators have continued to invest in NFTs. Creators are combining their incentives with their fans, as NFTs are unlocking real value from them.

NFTs Now Provide New Financial Rewards For Gamers

Creators in the NFT space are often believed to be musicians, artists, and social media entertainers. But gamers are also within the spectrum of creators. They make up one of the biggest sections of the creator economy. The NFT gaming industry is seriously booming, and there are openings and more opportunities for the section to expand even more. As of 2021, there were 404 million subscribers following the top 10 YouTube gaming influencers.

The report also noted that there were 2.7 billion gamers in the world. This means the NFT space has massive growth potential. Also, more people are now watching these gamers as they play. As a result, there is more opportunity for monetization through paid sponsorships, advertising, and product placement.

Although there has been a decline in active users of metaverse games like Sandbox and Decentraland, a new type of gaming revenue is emerging. The free-to-play and play-to-earn Web3 games are increasingly attracting gamers’ attention.