Analysis of the Current Status and Future Development Trends of the NFT Market

The current NFT market is at a critical turning point, facing many challenges, but it remains an important bridge for traditional internet users to enter the Web3 world.

Challenges Faced by the NFT Market

NFTs are mainly divided into two categories: production NFTs and collective NFTs.

Production-type NFTs face the dilemma of "either growth or extinction." Unrestrained issuance for growth leads to market inflation, value fluctuations, and ultimately falls into a death spiral. This type of NFT ecosystem is overly fragmented, with projects not interconnected, making it difficult for users to engage deeply.

Collective NFTs form a closed circle due to their scarcity, making it difficult to expand their value externally, with limited community size. At the same time, the brand tone is impacted, lacking a narrative for sustainable development. Ultimately, they can only be fleeting, and the user experience feels hollow.

The Value and Potential of NFT

Despite facing challenges, NFTs still hold unique value:

1. Non-financial characteristics lower the psychological barrier for users, making it easier to accept.

2. Can convert between Token and NFT, enhancing asset liquidity.

3. Design rich activities to enhance community engagement.

4. Has social and emotional value, showcasing personal characteristics.

These characteristics make NFTs play an important role in digital life, with significant growth potential.

Summary of NFT Project Operation Experience

1. The Move-To-Earn model has been validated by the market and is expected to be widely applied in areas such as health and fitness.

2. Establishing an effective anti-cheating system and activation code mechanism is crucial to ensure sustainable growth.

3. Guiding Web3 users is more challenging and requires more effort in education and guidance.

4. The demand for Web3 social interactions is strong, and attention should be paid to building a genuine and trustworthy social environment.

Strategies for Achieving Sustainable Growth

1. Capture user attention:

   • Design attractive content to increase engagement
   • Communicate key information in a timely manner
   • Provide zero-investment incentive mechanism
   • The simplification mechanism enhances user understanding

2. Develop acquaintance-based social networking:

   • Leverage the depth and trust of familiar social networks
   • Expand influence based on the six degrees theory
   • Introduce a leasing system to promote interaction
   • Focus on real user experience

3. Long-term development strategy:

   • Control the pace of growth, establish consensus
   • Extend product lifecycle
   • Redesigning Economic Model
   • Promote native NFT demand

Strategies to Address Stagnant Growth

1. Understand the essence of the "End-game" phase and reassess market positioning.

2. Promote user consumption:

   • Establish internal consensus
   • Collaborate with big brands
   • Develop IP cooperation

3. Leverage the power of social sharing:

   • Design "Show off" mechanism
   • Develop social media marketing

In summary, although the NFT market faces challenges, there is still vast potential for development through strategies such as innovative models, focusing on user experience, and developing social attributes. In the future, NFTs will play an increasingly important role in digital life.