Each week, Benzinga conducts an investing-focused survey to collect data on what traders and investors are thinking.
This week, we shifted our focus to the blockchain and the emerging market for non-fungible tokens (NFTs).
Where do you see NFTs most likely being in 10 years?
- Replaced regular art/made it obsolete
- Successful market alongside standard art forms
- Limited adaptation outside of a niche community
- Non-existent market (i.e. tulip bubble)
The top response was “Successful market alongside standard art forms,” with 37.2% of respondents indicating that this is where they most likely see NFTs at in 10 years.
Simply put, NFTs are unique tokens on the blockchain that are used to establish ownership of digital collectibles and digital art. While the market for NFTs has been on fire, with over $100 million In NFTs selling in 30 days, there is evidence that most buyers come from outside the established art industry.
The second-highest response was “Non-existent market (i.e. tulip bubble),” with 28.2% of respondents choosing this option. While non-fungible tokens are certainly a fascinating new concept, the fact of the matter is Bitcoin and other cryptocurrencies are still not widely used as currencies.
In fact, just a few weeks ago 72% of investors indicated that they believe Bitcoin is experiencing another bubble. If Bitcoin and other cryptocurrencies experience a correction, investors could see a rapid decline in the value of NFT-affiliated art as well.
The next-highest response was “Limited adoption outside of a niche community,” at 20.8%.
NFT art has gone mainstream in 2021, with online marketplaces such as NBA Top Shot becoming household names. But the rapid influx of users onto these platforms could leave some newbies holding the bag. If the hype surrounding NFT art cools off and causes a decline in value, users could view it as a fad and call it quits.