The Current State and Future Development of the NFT Market

Recently, the NFT market is facing numerous challenges, but it remains an important channel for traditional internet users to enter the Web3 world. This article will explore the current predicaments of NFTs, their necessity, and future development directions.

The Dilemma of the NFT Market

NFTs can generally be divided into two categories: production-type and collective-type. Production-type NFTs (, such as GameFi ), are facing the dilemma of "either growth or extinction." Unrestrained issuance has led to inflation, ultimately falling into a vicious cycle of declining value. At the same time, the ecosystem is overly fragmented, lacking connections between various projects, making it difficult for users to engage deeply.

Collective NFTs (, such as PFP ), form a closed circle due to their scarcity, making it difficult to achieve value spillover. The community size is limited, often with only a few thousand participants. On the other hand, excessive replication also lowers brand tone. The lack of practical application scenarios makes it hard to convert short-term marketing stories into sustainable narratives, ultimately making it difficult to maintain user interest in the long term.

The Importance of NFT

Despite facing challenges, NFTs still have unique advantages:

1. Non-financial characteristics lower the psychological barrier for users, making it a relatively safe asset class.

2. It can be converted between Token and NFT, enhancing asset liquidity.

3. The project team can design activities around NFTs to enhance community engagement and sense of belonging.

4. It has social and emotional value, represents personal identity and interests, and is an important part of the digital lifestyle.

Summary of Experience for a Certain Project

After three years of operation, a certain Move-To-Earn project has accumulated valuable experience:

1. The Move-To-Earn model has been validated by the market and has potential in the health and fitness sector.

2. An effective anti-cheat system and activation code mechanism are crucial for sustainable growth.

3. Guiding Web2 users into Web3 faces challenges and requires creating a seamless experience.

4. The demand for Web3 social interaction is real; how to achieve non-financial pairing with Web2 users is the key.

Sustainable Growth Strategies

To achieve sustainable growth, the project may consider the following strategies:

1. Capture user attention: design engaging content, convey information in a timely manner, provide zero-investment incentives, simplify user experience.

2. Acquaintance Socializing: Utilize the foundation of trust to facilitate efficient information dissemination.

3. Leasing System: Provides resource-sharing opportunities within the framework of familiar social interactions.

4. Focus on real user experience: create valuable content and activities, rather than relying on virtual rewards.

5. Control the growth rate: Ensure slow and steady growth through mechanisms such as activation codes.

6. Improve the economic model: extend the product lifecycle and eliminate inflation caused by renewable resources.

Coping with Stagnant Growth

When the project enters the "End-game" stage, the following strategies can be adopted:

1. Reassess market positioning, user needs, and competitive strategy.

2. Establish internal consensus to form a unified marketing strategy.

3. Collaborate with well-known brands or IPs to enhance influence.

4. Utilize social sharing: Encourage users to showcase their consumption experiences and use social media for precise marketing.

Through the above measures, NFT projects can achieve sustainable development in a challenging market environment, creating more value for users.