Over the years, the cryptocurrency business has received a lot of criticism from some of the most recognised financial leaders. Bitcoin has suffered a lot of pushback in the past, and even now, from notable CEOs and creators, who are now some of the asset’s strongest proponents.
Many other cryptocurrencies have suffered the same fate, and while some have dropped out, the vast majority have achieved widespread popularity over time. NFTs are the newest thing on the cryptocurrency market, and they, like the aforementioned, are drawing a lot of criticism.
Despite the multibillion-dollar market bringing in some of the world’s best soccer and entertainment personalities, Anthony Pompliano, who had supported NFTs, recalls his mistrust in their long-term domination. However, in a recent piece, Pompliano reversed his former position and explained why the market will be much bigger than I anticipated.
“The non-fungible token industry is a market expanding technology that will eat into not only digital art, but also collectibles, high-end luxury goods, and much, much more,” he asserted.
Pompliano’s remark is not without substance, as NFTs have grown in popularity since he first expressed interest in the digital asset class. According to figures from 2021, the NFT industry’s sales volume topped $2.5 billion in the first half of the year. However, in August, OpenSea, a single NFT marketplace, had a sales volume of more than $3 billion.
Several causes have contributed to this. One such issue is that, like real luxury objects, NFTs are increasingly being regarded as status symbols by market participants. Some digital asset proponents are even growing to prefer NFTs to actual goods for digital collectibles, market transactions, gaming, and enjoyment.
As a result, Pompliano believes that as NFT technology becomes more mainstream and finds new applications, it will far outperform its current level of success and acceptability. As Pompliano points out, NFTs are already finding some really interesting applications. There are now interactive NFTs that update based on real-world events that occur with the assets they represent. Ethernity Chain is the creator of this. Alethea AI developed an intelligent NFT, which is another upcoming NFT type. To tackle simple problems, it is powered by AI technology.