When somebody like Raoul Pal, a major influencer in the crypto space, is telling his millions of followers to increase their exposure to crypto, … He’s convinced that NFTs are about to have a serious second act. The broader crypto community has mostly held their tongues on NFTs this cycle. Pal’s optimistic outlook means that these digital assets do indeed have a chance to rally. His forecast comes as the broader crypto market eagerly awaits the "banana zone" phase of the Bitcoin macro cycle. Given Pal’s track record for making the right market calls, his latest prediction carries a lot of weight, leading to speculation about where NFTs are heading.
The Rise and Fall of NFTs
During the 2021 crypto bull market, NFTs were the main phenomenon making headlines, emerging as a key point of attraction for investors and crypto enthusiasts in general. Celebrities quickly jumped on the bandwagon, launching their own NFT lines, further driving mainstream attention. Individual artists such as Grimes made a lot of money off the trend, with her highest-selling NFT bringing in $5.8 million in 20 minutes. Artists like Snoop Dogg quickly began adopting NFTs and uncovering profitable ways of monetizing their creations.
NFTs provided an exciting new method for creators to engage with their audience, by delivering exclusive digital goods. The new technology was hailed as a revolutionary miracle of world-changing importance. As the early excitement died down and the NFT craze lost its firepower, the industry entered an extended period of… well, quiet. The floor price for the most desirable NFTs of all, Bored Apes, now stands at 46.60 ETH. This lofty figure demonstrates that these NFTs are sought after even in the current depressed landscape.
Pal's Perspective on the Crypto Cycle
Raoul Pal’s recently rekindled enthusiasm for NFTs is part of a larger bullish perspective on both the current crypto cycle and macroeconomic trends. He’s been right about crypto trends long before they arrived. In fact, as far back as 2013, he predicted Bitcoin’s rise to $100,000 on the Hive. Pal thinks the market is moving into the “banana zone,” the third phase, which is defined by increased growth and adoption.
He wouldn’t be surprised if this cycle played out into late 2025. This opens up an equivalent valued door for a wide range indie crypto-assets like NFTs. Given Pal’s track record, it is easy to see why his predictions carry such weight. Investors hang on his view with bated breath, willing to bet on the next big thing.
Community Hesitation and Future Potential
Despite these setbacks, Pal is incredibly upbeat about the future. The broader crypto community suppresses its excitement for NFTs this go-round. Perhaps this hesitancy can be explained by the fizzling out of earlier exuberance in the market followed by a major correction. The technology behind NFTs, as well as the potential use cases for them, is fascinating.
Pairing ownership with the ability to seamlessly deliver bespoke and unique products only achievable with NFT technology is another potential path to future growth. The crypto market is really quickly maturing. If new killer applications for NFTs continue, these digital assets might find themselves coming back into fashion and ultimately fulfilling their original potential as promised. Whether or not Pal’s prediction about an NFT resurgence will come true remains to be seen. His wisdom offers a behind-the-scenes view of the shifting crypto landscape that’s worth […]
