The NFT market faces challenges, but remains an important entry point for Web3

The current NFT market is in a challenging period, but it still serves as an important bridge for traditional internet users to enter the Web3 world.

Analysis of the Current State of the NFT Market

NFTs are mainly divided into two categories: production-type NFTs ( such as GameFi ) and collective-type NFTs ( such as PFP ).

Production-type NFTs face the dilemma of "either growth or extinction." Excessive issuance leads to inflation, ultimately falling into a vicious cycle of value decline. The ecosystem of such NFTs is overly fragmented, with projects being unrelated to each other, making it difficult for users to engage deeply.

Collective NFTs form a closed circle due to their scarcity, making it difficult to achieve value spillover, and the community scale is limited. At the same time, excessive replication reduces brand tone and lacks narrative support for sustainable development.

Unique Advantages of NFTs

Compared to cryptocurrencies, NFTs have the following advantages:

1. Non-financial characteristics lower the psychological threshold for users.
2. Can convert between Token and NFT, enhancing asset liquidity
3. Diversified activities can be designed to enhance community engagement.
4. Has unique social and emotional value, representing personal identity characteristics.

Summary of Web3 Project Operation Experience

1. The Move-To-Earn model has been validated by the market and has great potential in the health and fitness sector.

2. Anti-cheat systems and activation code mechanisms are crucial for sustainable growth.

3. Guiding Web3 users is more challenging than Web2 and requires more education and guidance.

4. Web3 social is a necessity, and attention should be paid to building a real and trustworthy social environment.

Strategies to Capture User Attention

1. Focus on the scarcity of user attention.
2. Grasp the timeliness of information delivery
3. Design an incentive mechanism with zero investment
4. Simplifying product mechanisms enhances user understanding

The Future Potential of Familiar Social Networking

1. Familiar social interactions are based on deep trust, making information dissemination more efficient.

2. The six degrees theory shows that acquaintances' social networks can expand rapidly.

3. The leasing system has great potential within the framework of familiar social connections.

4. Attention should be paid to creating authentic and valuable social scenarios and experiences.

Strategies for Achieving Sustainable Growth

1. Accept more Web2 users to control inflation
2. Extend product lifecycle, reshape economic model
3. Use activation code mechanisms to ensure slow and steady growth
4. Improve mechanisms to eliminate inflation caused by renewable resources.

Strategies for the End-game Phase

1. Understand that the End-game is a turning point, not an ending.
2. Establish internal consensus and formulate a unified marketing strategy.
3. Collaborate with well-known brands and IPs to enhance influence
4. Promote user consumption through social sharing mechanisms
5. Strengthen interaction with users through social media marketing

Through the above strategies, Web3 projects can achieve sustainable development in a challenging market environment and promote the further improvement of the NFT ecosystem.