A major crypto crash on Wednesday has put the global market cap back in the $2 trillion range. The market leaders Bitcoin and Ethereum have lost their grounds experiencing a severe loss of 7.72% and 9.28% round the clock. DeFi space that was slowly gaining the momentum to commence the new year rally woefully fell to market crash on 5th December.
On the other hand, NFT based tokens are down at heel with the overall NFT market cap losing by over 8.85% over the past 24 hours. As there are rapid advancements expected to rush the floor in Q1, tokens built on it would prosper to new highs.
Why NFTs Would Take The Lead In The Upcoming Bull Rally?
- The NFT is expected to expand vigorously to the 2022 market. The music, sports, and entertainment industry are anticipated to outline a mature business model. Further, there will be a transformation of priority in the NFT gaming domain to UX/UI.
- NFTs will achieve traction of a larger user base, as new use cases will materialize exceeding the leading art/collectibles and gaming.
- NFTs will grow beyond jpegs, and reputed tech firms will launch their own NFTs to maintain/enrich brand loyalty.
- Crypto evolves more mainstream than ever as NFTs will experience swift adoption from the entertainment and sports sectors with new features.
Especially NFT based protocols such as Axie Infinity, Decentraland, and The Sandbox are expected to steal the show in Q1 starting from the next week. Along with AXS price, MANA and SAND prices are trading at their crucial bottom where we can expect a massive breakout.
One day chart from trading view shows Axie Infinity’s RSI factor is now reached an all-time low of 29.16 indicating historic sell-offs. Even the price is trading at the multi-month low of $74.42, a solid breakout would drastically uplift the price action in the next couple of weeks.
On the other hand, MANA and SAND have also lost their grounds with record sell-offs. However, the correction may continue until the weekend. Once traders restart to accumulate the bottoms, the aforementioned coins have the solid potential to experience gigantic price rallies.
Collectively, emerging user cases of NFTs would become the dominant part of the market in Q1. NFTs will thrive to find new utilities and the most active zones of evolution are expected to take place in NFT-related infrastructure. Hence, once the market correction gets over, we can expect a heavy boost in the sector.