NFT Collectors Shift Focus to Community Building
The non-fungible token (NFT) marketplaces may not be as active as they once were, but they are far from dead. Instead, NFT collectors have started focusing on holding their assets for longer periods as the concept of community takes hold. According to an October report by NFT18, the time between an NFT purchase and resale has almost quadrupled since 2021 to just under 100 days. Despite this, active wallets on OpenSea are still quite healthy at 192,500.
Art Segment Gains Popularity
The art segment of the NFT market is gaining more popularity, with collectibles like the Azuki, Doodles, and Bored Ape Yacht Club collections dominating the NFT market in terms of active wallets. Surprisingly, art accounts for the second-most active wallets, while gaming, utility, and virtual world comprise the remaining 122,874 transacting addresses. Art makes up only 7% of the total volume traded in October.
The Future of NFT Marketplaces Lies in Community
In an interview with BeInCrypto, Carlos Diaz, the head of UNCUT, suggested that the future of NFT marketplaces should consider social features from the ground up. He emphasized the need to focus more on the collector community and less on speculation. Diaz pointed out that NFTs are powerful identity markers and can build strong communities based on shared interests. He believes that creators of NFTs can enjoy social validation through compensation from community members.
NFT Marketplaces Transition to Community Focus
Diaz added that the shift to a community-focused approach is evident as NFT marketplaces are now focusing more on enhancing the user experience and incorporating social features. OpenSea, one of the leading NFT marketplaces, is now under pressure to refocus on providing a better user experience. Companies like 10101.art are fractionalizing art for shared ownership, attracting owners with a collector’s mindset.
Incentives Impact Trading Activity
Blur, an OpenSea competitor, offers incentives that may have artificially boosted half its $213 million volume, making it difficult to gauge organic trading activity. OpenSea had the second-largest volume of $84.8 million in October. The number of active projects increased by 4% from September to 35%.
Overall, the NFT market is seeing a shift towards longer asset holding periods and a greater emphasis on community building rather than quick speculative gains. This new focus is likely to shape the future of NFT marketplaces as they continue to evolve.
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