In September, we mourned the non-fungible token market.
Hype around NFTs peaked in a 2022 bull run that captured worldwide attention, but trading volume of the asset in 2023 is barely 3% of its 2021 peak.
“NFTs had a bull run, then crashed—hard,” one report stated bluntly this year.
It’s a harsh but accurate assessment—myriad crypto companies have crumbled in the crash—although there is silver to salvage from the wreckage.
In our eulogy, we acknowledged that some of the emerging technology behind NFTs still shows promise and is being used by innovating companies in 2023—pointing to a collaboration between Vancouver startup ethos and Ottawa e-commerce pioneer Shopify as one illustrative example of such potential.
But as for digital pictures of apes, it’s probably over.
The only hope for NFTs making it as a viable asset class in the financial realm is if the next generation of investors adopt the commodity en masse. That may not happen.
Admittedly such a notion did seem, for a moment, possible. After all, those investing in NFTs and other cryptocurrency assets throughout the bull run undoubtedly skewed younger.
Gen Z appeared ready, if not eager, to carry the torch.
But in a world of increasingly high living costs and an increasingly less certain future, Gen Z does not appear interested in taking on risky assets like NFTs in their investment portfolios, especially following the crash.
According to a recent survey from Leger, nearly half of teenagers in Canada plan to invest in their Tax-Free Savings Account, while one-third plan to contribute to their Registered Retirement Savings Plan.
The survey, commissioned by fintech Mydoh powered by RBCx, found that real estate was also a popular investment opportunity, with 29% of respondents seeking to get involved.
And as for NFTs? Well, so much for capturing worldwide attention: A mere 10% of Gen Z plans to touch them. That’s a big nail in the coffin for tokens as an investment.
Financial literacy has gained importance in recent years, with more than three-quarters of Canadian teenagers reporting confidence in their understanding of money.
In fact, 63% of Gen Z already uses modern financial technology platforms and mobile apps to manage money, Leger found, with a similar number looking to begin investing as early as possible.
Just not into NFTs.