The metaverse is at the center of financial discussions due to the interest of major corporations that launched their ecosystems in recent times. The interest in metaverse real estate signals the expectation that the virtual space will be valuable for the long term haul. The equally exaggerated view of NFTs is another pointer that investors are warning about. However, investment analysts have different opinions about what to expect from NFTs and metaverses due to their visible characteristics. The following are some diverse opinions on NFTs:
Kraken Crypto Investment Analysts Predict NFTs will Lose Value
The analysts from Kraken do not expect to see a sustainable market demand for NFTs as time passes. The high market capitalization of the digital assets is due to the overrated value of the items. As things settle down, the investors will become aware of the fact and lose interest in NFT platform trading. The reduced demand will see the assets lose value and cause the market cap to fall. The conclusions come from an intense analysis of the market movement over the past months, where a downward trend is evident. According to their findings, the market cap of the NFT market in September 2021 was at its peak while it stands at half of the value today. The case example is when The Dorsey NFT, the former Twitter CEO’s first tweet, failed to sell for the targeted 25 million dollars. The owner bought it at 2.9 million dollars, but it received a bid well below fifteen thousand dollars at an open auction.
Report by Chainalysis Data Firm Suggests NFTs had Levelled Off
Suggestions indicate that NFTs experienced an explosive entry into the market over the past year, but they levelled off this year. The NFT research report by the blockchain firm indicates that the transactions involving the digital assets dipped from February due to less monthly spending. The hacking of NFT game provider Axie Infinity resulted in market capitalization falling from 10 billion to 2 billion. The aftermath of the attack contributed to the levelling off of the revenues. The net spend on NFTs in 2022 stands at 37 billion, meaning that there is potential to surpass the 40bn spent in 2021. The positive statistics in the unfavourable NFT marketplace reflect the willingness of investors to end on promising projects, including NFT art.
Opinion by Flora Harley for CNN Business Perspectives: The Storm will Pass
CNN Business correspondent Flora Harley believes that the NFT marketplace is experiencing a temporary storm that will soon be over. Despite acknowledging that the market boom was due to overpriced assets, she believes that the current situation will get better. The argument is that NFTs are a new concept, and people are learning how to store them in their wallets for future trading. The expectation is that users will not pay extreme prices to acquire the assets, but they will understand the value on offer. The NFTs will continue selling the same way physical art goes for reasonable rates. The following are expert opinions about the metaverse:
Republic Realm CEO: Metaverse Real Estate, a Worthy Investment
The Republic Realm Corporation acquired real estate property worth an estimated 4.3 million dollars in the Sandbox metaverse. The move is the most expensive real estate acquisition in the digital world, and it attracted different views from the public. Responding to the concerns, CEO Janine Yorio claimed that the firm made a justified purchase and time will vindicate the choice. The reasoning is that the metaverse presents diverse opportunities, and it is important to take a bold step when everyone is reluctant.
NVidia Corporation has Faith in the Metaverse Project
NVidia indicated their trust in the Omniverse project by announcing support for creators willing to carry out innovative trials. The corporation gave free access to developer tools needed by artists to create metaverse projects that will contribute to better engagements for users. The gesture suggests that the company is willing to invest in the metaverse dream to make it a reality.
Animoca Brands Chairman: Virtual and Physical Realities Must Exist in Harmony
Yat Siu, executive chairman at Animoca Brands, believes that the two realities do not exist to compete but support each other for fulfilment. Siu believes that the technologies should present a better version of both realities by allowing interchangeability. For example, augmented reality can support sensations in the metaverse and apply them in the real world during physical workouts.
The opinions of top investment analysts on NFTs and Metaverses suggest the hope of seeing innovative ideas achieve their objectives in the future. The interest by corporates who are making investments shows the intention to provide all the structures necessary to make the projects successful. However, it is important to understand the interests of such firms and how they plan to protect users. It will be a shame to move to the virtual world with the same setbacks as traditional social platforms.