What does the NFT space need to thrive?

This is a topic that has been debated and discussed about since NFTs broke the mainstream in 2021. It’s a big and nuanced topic but an important one.

A fundamental issue we are facing, especially now during the “bear market” is that liquidity is thin. When most crypto native participants (who are the vast majority of collectors in our space) are highly dependent on the performance of cryptocurrencies, then at difficult times they collect significantly less. This is a blessing in disguise for many, as it teaches you to collect more thoughtfully but it’s a big hit for artists. We’ve seen artists who thrived during the bull market now struggle to sell out collections and pieces and looking for alternative income streams.

This was always going to be solved by something that many disagree with, the entry of traditional art collectors or retail. The liquidity that exists in traditional art markets is astronomically larger than in the NFT space. This additional liquidity will be pivotal for the longevity and health of the NFT market. In order for this to happen though, onboarding rails must be improved. Wallets, cryptocurrency, seed phrases are all Greek to the average Joe. There is work being done to create these rails but we are not 100% there yet.

I think this is inevitable with the biggest wealth transfer in history happening in the next three decades, estimated to be around 100 trillion dollars. With Gen X and Millennials being the first recipients of these inheritances, I believe we will see a vast majority of capital flowing to digital art, something these generations understand better than the previous ones. The big shift will, in my opinion, be when Gen Z and future generations receive these funds as these generations will have been naturally born into technology. From the moment they are born they have a screen in front of them, they interact with digital currencies (for example in video games like V-Bucks in Fortnite) and digital ownership (for example in vide games like skins in Counter-Strike). These generations will embrace digital art and collectables more than ever before, ushering the golden age of acceptance and normalization of digital art.

What else do you think needs to happen?