The rise of Web3 has fundamentally reshaped how digital ownership is perceived, placing control of content, data, and assets directly in the hands of users. At the heart of this transformation lies NFTs (Non-Fungible Tokens)—a revolutionary digital asset class that powers innovation across music, art, gaming, fashion, sports, and the metaverse. As the ecosystem evolves, questions about sustainability, liquidity, and long-term opportunity dominate industry discourse.
On September 14, 2022, OKX hosted a Twitter Space AMA titled "Where Are the Future Opportunities in the NFT Market?" featuring key voices from across the space: Mandy from Odaily Planet Daily, Maxi and Christy from OKX NFT, digital artist Prince Jian, Ray from HeiMao Community, and NFT investor Mama Jie. The discussion offered deep insights into current challenges and future directions for the NFT ecosystem.
The Liquidity Challenge in Today’s NFT Market
One of the most pressing issues facing the NFT market is liquidity. Unlike fungible tokens used in DeFi protocols—where users can earn yield through liquidity mining—NFTs are inherently illiquid. Once purchased, they often sit idle in wallets, locking up capital with no guaranteed exit strategy.
Mandy highlighted the growing concern around platforms like BendDAO, where blue-chip NFTs faced liquidation risks due to undercollateralized loans. With overall NFT trading volume down more than 90% from 2021 peaks, the need for innovative liquidity solutions has never been greater.
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Artist Perspective: Wealth Creation Drives Liquidity
Prince Jian, both an NFT artist and investor, believes true liquidity stems not from tools alone but from wealth creation. "If people see real profit potential," he said, "they’ll naturally bring capital into the space." He argues that while fragmentation or fractional ownership models exist, they don’t drive meaningful adoption unless backed by strong market momentum—something typically seen during bull runs.
"In a bear market, even the best tools struggle to create organic flow. Liquidity follows narrative and returns."
Community Insight: Infrastructure Gaps and Emerging Models
Ray pointed out that OpenSea's August trading volume had dropped to just $498 million—a stark contrast to previous highs. While macroeconomic factors play a role, he emphasized structural limitations in current infrastructure.
He sees promise in three areas:
- C2C lending platforms, which allow peer-to-peer NFT-backed loans.
- NFT AMMs (Automated Market Makers) like sudoswap, enabling continuous liquidity pools.
- Fractionalization, allowing partial ownership and broader access to high-value NFTs.
However, he cautioned that none of these fully solve the core issue: lack of consistent demand.
Platform Strategy: Aggregation and Efficiency
Christy from OKX NFT explained their approach: building a multi-chain NFT aggregator embedded within the OKX app. By integrating liquidity from major marketplaces like OpenSea and Magic Eden, OKX offers users a unified interface for both CeFi and DeFi trading—eliminating the need to switch apps or wallets.
“NFTs are non-fungible by design,” she noted, “which creates uniqueness but hurts liquidity.” To counter this, OKX is exploring features that reduce visual bias within collections—allowing users to treat similar NFTs more like fungible assets when appropriate.
She also stressed the importance of transaction efficiency, advocating for early API access to attract professional market makers. “Real liquidity comes when institutions can participate seamlessly.”
Unlocking New Value: Functionality Over Speculation
As speculation cools, focus shifts toward utility-driven NFTs. Christy believes the next wave of innovation will come from expanding what NFTs can do, not just what they represent.
Protocols like ERC-3525 (semi-fungible tokens) open doors for dynamic metadata, programmable royalties, and layered ownership—enabling use cases beyond digital art. For project creators, this means more room for storytelling and innovation.
Maxi echoed this sentiment: “New transaction mechanisms could disrupt the status quo just like AMMs did for DeFi.” He sees opportunities in:
- Next-gen NFT exchanges with improved fee structures
- NFTFi (NFT Finance) tools targeting broader user bases
- New standards enabling composability and interoperability
- Real-world applications in identity, ticketing, and membership
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Growth Tactics: Platform Tokens and User Incentives
With attention scarce in bear markets, many platforms turn to token incentives—such as exchange tokens and trading mining—to boost visibility.
Maxi acknowledged that while product quality matters, market awareness is king during downturns. “Launching a token is one of the fastest ways to grab attention.” Whether through retroactive airdrops or trading rewards, these models help platforms bootstrap communities quickly.
Christy added that in Web3, tokens function as currency + points + equity, creating powerful alignment between users and platforms. When designed well—with mechanisms tightly coupled to core business functions—they form sustainable ecosystems.
Still, she urged caution: “We must watch long-term viability. Past projects have shown that poorly balanced reward systems can collapse under their own weight.”
Advice for Investors: Stay Active, Stay Informed
For retail investors navigating uncertainty, Maxi offered two key tips:
- Avoid buying small-cap NFTs on secondary markets unless you're close to the information source.
- Focus on engagement—join communities, test products, contribute ideas. Some projects even reward active members with ambassador roles or early access.
Christy emphasized building reliable information pipelines and using objective metrics to evaluate projects. Emotional decisions often lead to losses, especially in volatile conditions.
“Curate your sources,” she advised. “Look for quantifiable indicators—floor price stability, holder distribution, trading frequency—and let data guide your choices.”
The Road Ahead: Trends Shaping the Next Cycle
Despite current challenges, panelists remain optimistic about the long-term trajectory.
Mama Jie praised NFTs for delivering emotional and cultural value. She encouraged builders—especially in China—to dive deeper into Web3, noting the sector's higher potential for unicorn-level success compared to traditional tech.
Ray foresees a fusion of NFTs and social layers, where shared interests fuel real-world connections. He also anticipates a surge in non-standard financial assets going on-chain, such as real estate deeds or private equity stakes—massively expanding NFT’s total addressable market.
Maxi believes now is the perfect time to build. “Bear markets are incubators. The next cycle’s leaders are being built today.”
Christy concluded with a call to action: “Be a proactive builder in a pessimistic environment. When the next bull run hits, it’ll be too late to start.”
Frequently Asked Questions (FAQ)
Q: What causes low liquidity in the NFT market?
A: The non-fungible nature of NFTs makes each asset unique and harder to price or trade quickly. Combined with reduced speculative activity in bear markets, this leads to thin order books and high slippage.
Q: Can fractional NFTs solve liquidity issues?
A: Partial ownership increases accessibility and trading frequency but may dilute perceived value. Success depends on maintaining clear redemption rights and preserving original holder benefits.
Q: Are NFTs still a good investment in a bear market?
A: Direct speculation carries risk. Instead, experts recommend engaging with communities, testing new platforms, and focusing on utility-based projects with strong fundamentals.
Q: How do platform tokens help NFT marketplaces grow?
A: They incentivize user participation through rewards and governance rights. When aligned with platform usage, they foster loyalty and drive organic growth.
Q: What role does mobile play in NFT adoption?
A: Mobile apps offer convenience and broader reach. Platforms like OKX are investing heavily in app-based experiences to provide seamless, all-in-one trading environments.
Q: What are the most promising future uses for NFTs?
A: Beyond art and collectibles, expect growth in identity verification, event ticketing, intellectual property licensing, decentralized social networks, and tokenized real-world assets.
The NFT landscape is evolving—from speculative frenzy to foundational innovation. While challenges remain, the convergence of better infrastructure, enhanced functionality, and smarter incentive models points toward a more resilient and inclusive future.
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