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Cryptocurrency News Articles
The NFT Market Is Dying, But The Sports Industry Is Still Seeing Some Development
Oct 07, 2024 at 09:06 pm
According to the Forkast 500 NFT Index, the NFT market peaked in January 2022 and has been in decline ever since.
The NFT market has seen a decline since peaking in January 2022, largely due to the over-saturation of the market following significant interest in 2020 and 2021. However, this decline may not mark the end of the NFT era.
As the hype surrounding NFTs has died down, the market is likely to find its place and new projects will emerge to replace Cryptokitties and its contemporaries.
One industry that continues to see NFT development is the sports industry. Individual players, such as soccer’s Christiano Ronaldo, as well as clubs, leagues, and even national sides, have launched their own NFT collections.
While this may not quite match the digital fever observed at the end of 2021, it still provides a way for fans to show their support and for players and clubs to potentially raise capital.
Cryptocurrency In The Sports Industry
Cryptocurrency and sports have formed a close alliance. Sports teams are being sponsored by cryptocurrencies and exchanges – cryptocurrency billboards, especially those belonging to crypto.com, can be seen at almost every major sporting event.
Bitcoin, Ethereum, and other cryptocurrencies are also being accepted as a means of paying for merchandise and booking tickets to games.
These same coins are proving popular as a payment method for live betting, too, and, according to sports and casino expert Martin Booth, players can enjoy lightning-fast transactions on a wide variety of different sports and wagers.
What Are NFTs?
NFTs operate on the blockchain, just like cryptocurrencies do. Once an NFT is registered on the blockchain, it can be bought and traded just like any asset.
The records are immutable and cannot be deleted which gives the buyer of the token full and permanent ownership.
Virtually any digital file can be turned into an NFT, too, whether it’s audio, video, visual, or, now, even responsive. Artists can sell their digital art, musicians can sell their music. Collectibles are also popular, and it was thanks to collectible games like Cryptokitties that helped further popularise the market.
More recently, though, as collectibles and even digital art and memes have become less popular, sports players, clubs, and leagues have continued to sign new deals or extend existing ones.
Is The NFT Market Dying, Or Just Evolving?
When NFTs became massively popular, most buyers were looking to make quick money. Some of the tokens were selling for millions of dollars, with Pak’s “The Merge” selling for more than $90 million in December 2021.
That sale either came at the peak of NFT activity or was responsible for it.
But, as the market has died down, there are fewer and fewer of these massive tickets, with most NFT creators looking for mass exposure, rather than big individual sales.
This is evidenced by the likes of Ronaldo partnering with Binance to launch several NFT collections.
The collection proved so popular that the two launched yet another collection. Ronaldo’s NFTs celebrate his illustrious career with individual tokens that commemorate landmark goals, major achievements, and moves between clubs.
Why Teams Launch NFTs
There are various reasons why players and clubs might launch their own NFTs:
Fan Tokens As An Alternative
One alternative to NFTs that has also proven popular is fan tokens. These are fungible, which means they can be replaced, so they don’t hold the same value as NFTs.
But, they can be established by teams and individuals, sold to raise capital, and they are popular with sports fans who want to show their support for their favorite teams or players. Some tokens even offer voting rights, discounts on tickets, or other bonuses for holders.
Popular Sports NFTs
NBA Top Shot
NBA Top Shot has been set up by the National Basketball Association and offers fans the opportunity to trade “moments” from the NBA league.
Every moment is a limited series of NFTs based on a particular moment from the league and throughout its history. Top Shot has become very popular in recent months, which has pushed demand for the NFTs up. Some early buyers are seeing profits, but the increased demand also means that new buyers are facing higher prices.
Sorare
Sorare is a soccer-based collectible platform. The collectible cards are based on popular players from the present and past and they are traded on the Sorare platform itself.
The NFTs can also be used in online competitions and games, and having been established in 2018, it already has a reasonable following. Prices for some of the biggest names in the game can be high, however.
Christiano Ronaldo NFTs
Ronaldo is one of the most celebrated and successful names in soccer. He recently broke the record for having the most social media followers, and his first collection of NFTs, traded on the Binance network, was so popular that the two have teamed up to announce three more collections, with his most recent in May this year.
The NFTs celebrate major milestones in Ronaldo’
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- Oct 08, 2024 at 02:20 am
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