NFT Product Asset Classification Through Transaction Volume Analysis

Abstract

As interest in NFT increases, it is creating a new market by combining it with fields such as games and art. In addition, due to the intangible nature of NFT assets, various events have occurred. Accordingly, conflicting viewpoints exist in that some view NFT products as assets while others think of them as bubbles. In today’s rapidly changing era, distinguishing the nature of NFT will be an important criterion.
This study analyzed the current status of NFT through NFT's representative cases, development history, and related events, classifying NFT products as liquidity assets. In addition, it was estimated that NFT emulates real estate, noting that it needs a set time period from purchase to sale, and is difficult to immediately cash in. Therefore, an analysis of the correlation between Cryptofunk's liquidity index and apartment liquidity index among real estate was made.
As a result, NFT products share similarities with apartments and can be classified as long-term investments rather than short-term. Currently, the stagnation of virtual asset growth stems from external causes such as the economic recession and the Ukrainian War. However, as the virtual asset market is predicted to thrive, NFT must break from its image as a short-term investment by merging with other technologies to provide a steadfast long-term investment scheme.