Is It Too Late to Get into NFTs 1

Is It Too Late to Get into NFTs in 2024?

ByEmmanuel Posted on Updated on

We’ve all been hearing stories from the internet, from colleagues, and even from our friends about how they’ve made millions with NFTs. Some might have been exaggerating their gains, while others genuinely raked in a frightening amount of money by trading NFTs. So, is it too late to get into NFTs in 2024?

Well, it’s true that many believe the market has become oversaturated, leading to fewer opportunities. However, the truth is that NFT technology is here to stay for a long time, and we’re still in the early stages of its evolution.

How NFTs Took Off: A Detailed Timeline

Let’s take a walk down memory lane to understand how NFTs have developed and where they are now. This will help you make informed decisions about getting into NFTs.

2014: Quantum Beginnings Mark the Birth of NFTs

It all started when a digital artist named Kevin McCoy created the very first NFT called Quantum. What’s interesting is that he actually minted it on the Namecoin blockchain, a digital currency that allows data storage within its own transaction database.

quantum NFT
Quantum NFT

So, McCoy’s creation marked the beginning of this whole NFT phenomenon we see today.

2017: CryptoKitties Craze and The NFT Movement Gain Momentum

Back in 2017, something really cool happened in the world of NFTs. This game called CryptoKitties came out, and it was a total game-changer. Basically, it lets people collect, breed, and trade digital cats, but here’s the catch: each cat was a unique token on the Ethereum blockchain. 

Cryptokitties NFT
Cryptokitties NFT

Also, a bunch of NFT projects hit the scene, like CryptoPunks and Rare Pepes. These projects really took advantage of what makes NFTs special—the fact that they’re unique, scarce, and can’t be changed. 

2020: Digital Escapism—NFTs in a Pandemic World

The COVID-19 pandemic hit, and people started spending more time online. This led to a renewed interest in NFTs as people look for new ways to connect with and support artists.

2021: Year of the NFT Boom—High-Profile Sales and Skyrocketing Adoption

In 2021, NFTs saw a significant increase in adoption. This was driven by a number of factors, including the rise of NFT games like Axie Infinity, the launch of popular NFT platforms like NBA Top Shot, and the sale of high-profile NFT artworks like Beeple’s “Everydays: The First 5000 Days”. Other sales in 2021 include Jack Dorsey’s first tweet for $2.9 million and the Bored Ape Yacht Club collection for over $1 billion.

Beeple Everydays NFT
Beeple Everydays NFT

Some of the blockchains that saw the most growth in NFT adoption in 2021 were Solana, Polygon, and Ethereum. Solana is a high-performance blockchain that is well-suited for NFTs, while Polygon is a Layer 2 scaling solution for Ethereum that makes it more scalable and affordable to mint and trade NFTs.

2022: NFT Market Cool-Off—A Year of Reflection and Revaluation

The NFT market starts to cool off. The number of sales and the average price of NFTs both decline. Some people start to question the value of NFTs, and there are even reports of people losing money on NFT investments.

2023: Innovation amid Turbulence—Battle for Market Dominance

In 2023, the NFT market has seen significant changes and developments. The trading volume of NFTs increased sharply in Q1 2023 but then declined, largely due to incentives and airdrops from Blur, a new player in the NFT marketplace. 

Blur has managed to surpass OpenSea, the previous leader in the NFT royalty market, by offering optional royalty and zero gas fee approaches, attracting price-sensitive users.

The bear market at the end of 2022 affected the profitability of blue-chip NFTs, but some projects still performed well. BAYC, for instance, showed strong profitability in the seller’s market. The trading volume and number of Bitcoin Ordinals market have been on the rise, but its trading volume only accounts for 0.02% of the ETH market.

The NFTFi lending market revived in Q1 2023, with loans amounting to about $25 million from January to March. ParaSpace accounted for the largest market share of the lending market, while NFTFi led in the number of NFT lending users.

On the regulatory side, the IRS issued Notice 2023-27, indicating that NFTs may be taxed as collectibles in future guidance. This could mean that any gain from NFTs would be subject to a 28 percent rate, a higher rate than current capital gains rates.

Overall, the NFT market in 2023 is characterized by shifts in market leadership, changes in trading volume, and emerging regulatory considerations.

NFTs in 2024: What to Expect

In 2024, NFTs will become more than just a trend but a transformative technology that’s reshaping various sectors. They are being developed and integrated into new platforms and technologies, creating a myriad of opportunities for individuals and businesses alike.

One trend we noticed during the later months of 2023 was more big brands (we’re talking Gucci, Starbucks, and other traditional companies) doubling down on their Web3 initiatives. This shows that NFTs are finding a better use case as a technology for improving customer loyalties than the average cash grabs we were used to.

Also, strong Web3-native projects also crossed over to the mainstream like Pudgy Penguins launching their toy brand across Walmart stores in the US.

Claynosaurz (a popular Solana NFT collection) also launched its plushies collection in a bid to break into the physical product sector.

So, what can we expect from NFTs in 2024? It’s simple: more real-world use cases that will take NFTs mainstream.

So, is it too late to get into NFTs in 2024?

While there are still challenges to overcome, such as technical, regulatory, and interoperability issues, the potential of NFTs is immense. If you’re considering getting into NFTs, it’s important to understand that it’s not just about buying and selling digital art. It’s about being part of a new digital economy that’s being shaped by NFTs and the technologies they’re being integrated with.

Is It Too Late to Get into NFTs?
Is It Too Late to Get into NFTs?

So, is it too late to get into NFTs today? The answer is no; it’s definitely not too late.

What’s the Future of NFTs?

The future of NFTs is likely to be marked by increased integration into mainstream digital platforms, expanding beyond art into areas like real estate, gaming, and intellectual property rights. 

As blockchain technology evolves, we can expect more efficient, eco-friendly NFT platforms. Regulatory frameworks will likely emerge, addressing concerns around copyright and fraud. 

However, the volatility and speculative nature of the NFT market may persist, posing risks to investors. 

Overall, NFTs will continue to redefine digital ownership and monetization, but their long-term impact hinges on technological advancements, regulatory decisions, and market dynamics.

Is it too late to start an NFT collection?

It’s not too late to start an NFT collection because the technology is still in its infancy, so there’s still plenty of room for new collectors. But just like with any investment opportunity, there’s no guarantee of success. So if you’re thinking about starting an NFT collection, be sure to do your research and only invest what you can afford to lose.

Is it a good time to invest in NFT?

Well, that depends. If your main focus is making a quick profit, it may not be the best time to dive into the NFT market. Currently, the NFT market is experiencing a bearish trend, meaning prices have significantly declined from their previous all-time highs. Flipping NFTs for a profit might not yield the same immediate returns as it did during the peak of the market.

On the other hand, if you’re interested in long-term investment opportunities, now could be a favorable time to buy NFTs. The NFT market is still relatively new and has substantial potential for growth.

Should I Create an NFT Now?

Certainly! Creating an NFT right now has advantages and disadvantages that you should consider. It’s important to be aware that a significant number, around 80%, of NFT projects end up failing. This suggests that there’s a considerable risk involved. 

Additionally, the cost of creating an NFT can vary significantly, ranging from as little as $0.05 to well over $150. This cost depends on several factors, such as the expenses associated with the chosen blockchain, gas fees, marketplace account fees, and listing fees. 

Also, it’s worth noting that the majority of individuals who are actively interested in NFTs fall within the age group of 18 to 24. It’s important to take these factors into account and carefully evaluate whether creating an NFT aligns with your goals and circumstances.

Is it too late to get into NFTs – Final Thoughts

While the NFT market has been around for a while, it’s far from saturated or over. There’s still plenty of excitement and innovation happening, and it’s definitely a space worth exploring if you have an interest in digital art, collectibles, or unique digital assets. Just remember to approach it with an open mind, do your research, and maintain a balanced perspective. There’s still plenty of time to dive into the captivating world of NFTs.

Frequently Asked Questions

Is it too late to get into the NFT game?

It’s never too late to enter the NFT market. However, like any investment, it requires research and understanding. The market is volatile and trends change rapidly, so staying informed is crucial. You can join subreddits or sign up for some NFT newsletters.

Is now a good time to invest in NFTs?

The right time to invest in NFTs depends on market conditions and personal financial circumstances. It’s important to understand the risks and potential rewards before investing.

Is it still possible to make money with NFTs?

Yes, it’s possible to make money with NFTs, but it’s not guaranteed. Success depends on various factors, like the uniqueness of the NFT, market demand, and how long you hold the NFT.

Is it bad to invest in NFTs?

Investing in NFTs isn’t inherently bad, but it does carry risks due to market volatility. It’s essential to do thorough research and only invest what you can afford to lose.

How long does it take to make 1 NFT?

Creating an NFT can be relatively quick, often taking a few hours to a day, depending on the complexity of the asset and the platform used.

What age is the NFT market for?

The NFT market is open to anyone of legal age to enter into contracts, typically 18 or older. However, understanding blockchain technology and financial risk is necessary.

Is it easy to sell your first NFT?

Selling an NFT can be challenging, especially for beginners. Success depends on factors like the quality of the NFT, your marketing efforts, and current market trends.

How much money do you need to create an NFT?

Typically, the cost involved in creating an NFT can vary from $0.05 to $150. Several factors influence the cost, including the blockchain’s gas fee, marketplace account charges, and listing fees, among others.

Ekokotu Emmanuel Eguono is a tech and fintech content specialist based in Nigeria. He focuses on creating SEO content that engages readers on emerging technologies, cryptocurrency, blockchain, Web3, VR/AR, AI, and related topics. Emmanuel stays on the cutting edge of these rapidly evolving spaces to produce valuable, insightful content that helps gain visibility and convert audiences.

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