What Does the Future Hold for the NFT Market after the Crypto Winter?

Without a doubt, we have arrived at the crypto winter.

Crypto winter

We are constantly bombarded by worrying headlines. 9 of the Top 12 Crypto Assets Are 70%–90% Below last year's all-time highs and the sales of NFTs have dropped 88% compared to the sales of the previous year. Some big crypto companies such as Celsius went bankrupt despite taking a big market share. Opensea, the largest NFT marketplace, laid off 20% of its workforce. No doubt, the crypto winter will be a cold one.


The market crash has been brutal. For the crypto community and traditional investors as well.


For traditional investors, the bear market is hardly a new thing. They know they will overcome it - sooner or later. For the crypto community it is a bit different. Although they already lived through one market crash in 2018, this time the crypto winter is raising skepticism about blockchain technology itself. The insane amount of hype that surrounded blockchain was bound to dwindle - primarily because the technology wasn’t put to good use and many jumped on it looking for a fast cash grab.


But we have not reached the dead-end. There are signs of market recovery. This crypto winter will not last forever.


Utility will save the world

Blockchain, as a new technology, created a lot of hype around it in the early years as people were jumping in without any in-depth research into what it was.


This is clear with NFTs.


Although NFTs started around 2014 with “Quantum", they gained recognition quite recently. You may mark 2021 as the year when NFT went mainstream.


With massive sales, it was the year of anything-goes for NFTs. The hype was overwhelming to the point that people were buying anything.


Although it was beneficial for some creators at first, this trend couldn't last forever. While some of the people were grabbing NFTs like there was no tomorrow, unconvinced bystanders were shocked to see this. After all many NFTs that were sold around that time had no utility - they were just pretty pictures on the blockchain.


In March 2021, Sina Estavi broke into the headlines when he purchased an NFT of the first tweet for a whopping $2.9 million. A year later, he is in the news again: this time because he is unable to sell his NFT. When he tried, he received $280 for the highest bid. The explanation is simple: the hype is over and the first tweet NFT, although it might hold some sentimental value, does not have any true utility integrated into it.


Because of cases like this, the public has concluded: NFTs are useless.


NFTs were mocked. This was a massive embarrassment for the developing crypto community. Blockchain's worth and the benefits it offered were shadowed by the rise and collapse of NFTs that had no value. Crypto projects are still trying to change how people think about NFTs and show that blockchain technology can be used to make useful products.


The value of NFTs comes from their utility. The hype is not enough.


And NFT projects, at least the ones that are still in operation, seem to understand that now.


Great examples of NFT utility are tickets and NFT games.


NFT tickets solve various problems that arise in traditional ticketing. As NFTs can ensure ownership, the risk of buying a counterfeit ticket is slimmer with NFTs. Also, NFTs remain as memorabilia and can even grant you various perks via airdrops in the future.


NFT games assert true ownership of in-game assets for the players and let them earn from engaging in the game. Many believe NFTs are the future of gaming as their adaptation could enhance the user experience for players.


This crypto winter will not kill NFTs. In the end, the bear market will filter out projects based on hype and those that create assets with utility.


The growth of crypto is in the hands of Gen Z

Young people are the driving force behind shifts. And it seems like Gen Z will drive the crypto industry up.


Although members of Gen Z are less likely to invest than Millennials, it is important to note that members of the younger generation are more likely to have purchased cryptocurrencies than stocks.


This fact should not be overlooked, as most of the members of Gen Z have not reached financial independence yet, so it is no wonder why they are investing less. As Gen Z's income grows, they will move the market as well, helping to end the crypto winter.


Mars4 goes beyond the crypto winter

When Mars4 started in 2021, the market was booming and there were no signs of the upcoming crypto winter. But the Mars4 team saw the ugly side of NFTs even back then: all hype, no utility. The people who created Mars4 knew how powerful blockchain was and decided to use it in a project.


2021 was a good year for NFT games as well. Axie Infinity was taking the market by storm. Terms such as play-to-earn started trending as people got their first taste of earning from gaming. Some people quit their jobs and started playing Axie Infinity full-time. But soon it all crashed. What happened? It wasn't the crypto winter we are living in now - not back then.


Games such as Axie Infinity allowed players to earn, but they were monotonous. In the game, players breed Axies and try to sell them in peer to peer market. The excitement wasn’t there for long: Axie Infinity became a chore.


To keep the game profitable, you must create a sustainable economy. It is only possible by doing what game studios have been doing for ages: creating fun games.


This is where Mars4 saw an opportunity. It seemed like the fun factors were overlooked in NFT gaming. Mars4 set a goal to fix that.


Mars4 is a survival game based on the Red Planet. Thanks to the game's stunning visuals, players can experience Mars firsthand. Given that Mars4 is planned as a metaverse, there is no limit to what can be done there.


The first game demo is already out and free to download for Windows users. It is a single-player Mars experience that allows players to explore, build their stations and drive vehicles around the planet.


The multiplayer version of Mars4 is set to be released in 2023, Q1.


Even during this harsh crypto winter, Mars4 has not stopped development and will continue on the project. Not only that - Mars4 has not cut any budget for game development and has no plans to do so. It is because the project believes in blockchain technology - and thus it knows it will survive and flourish in the future, no matter how harsh the crypto winter is now. As Mars4 is one of the projects that focus on giving NFTs utility, Mars4 should outstand the crypto winter.


The crypto winter might be the best opportunity to invest in crypto projects. You can grab yourself a land plot on Mars with a 30% discount. To make your journey smoother, mint a vehicle with 10% off.

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