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Market in a slump across the board! NFTs reluctantly taking the stage, what can we expect for their future development?

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Market in a slump across the board! NFTs reluctantly taking the stage, what can we expect for their future development?

The Block's research director, Larry Cermak, often shares his comments on Twitter. He is known for his critical views on trends that the market is currently enthusiastic about, often issuing warnings and comments during the height of DeFi liquidity mining. As the hype around NFTs began, he also strongly questioned the liquidity and scarcity of these digital collectibles.

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The Block's Research Director, Larry Cermak, often shares his comments on Twitter, where he frequently expresses criticism towards the trends that the market is currently enthusiastic about. During the hype of DeFi liquidity mining, he issued warnings and comments. As people began to hype the topic of NFTs, he strongly questioned the liquidity and scarcity of these digital collectibles.

Yesterday, he made some comments on recent trends: "My current market perspective is quite negative in the short term. There is a lot of uncertainty in the overall economy, and it will continue at least until after the U.S. election. Both Bitcoin and Ethereum are still correlated with the overall economy. The enthusiasm for DeFi projects and some meme coins has waned, and cooling off is necessary.

NFTs, non-fungible tokens, seem to be a trend that is being pushed hard. This market is not yet mature enough to explode. First, it must have second-layer interoperability solutions, better creators, and attract the public. Imagine how difficult it is to convince people that Bitcoin is rare, convincing them that NFTs are rare is also not easy.

A more practical catalyst for development should be the launch of Phase 0 of Ethereum 2.0, Uniswap v3, Synthetix, and other projects that support interoperability with second-layer solutions. By the time you really need to use Ethereum, it's almost unusable. Unless the issues are resolved or alleviated, people won't use it.

Will we enter another two-year bull market again? Absolutely not. There are too many truly useful things happening, but the market is overheated. Many stupid things are happening, with money being printed everywhere, which is not sustainable. However, these conditions will improve; there will just be short-term pain."

Some people think that Larry is just taking the opportunity to make bearish comments when the market is falling, but he stated that he had expressed the same thoughts a week earlier. He may also be wrong and will continue to observe.