Author: David
Publication date: 05.09.2024
Understanding APENFT
APENFT, founded in 2021, was created to combine the world of art with the digital world of cryptocurrencies and non-fungible tokens (NFT’s). By combining both of these worlds they are achieving their mission of making artwork available to all and creating an accessible trading space. The project’s usage of the TRON blockchain technology, its collaborations with other big NFT-marketplaces and the integration of Ethereum and BitTorrent makes it a fan favourite. The project’s backing from a foundation which is dedicated to supporting the digital art world makes it one of the key players in the crypto and NFT world.
Analysing recent performance
To see if investing in the cryptocurrency is a smart idea, we will also need to analyse the recent performance and the current state. After analysing it is easier for us to give a prediction of the future.
Token value
If we take a look at coinmarketcap we can see that the value of the APENFT currency has experienced some fluctuations during the second and third quarter of 2024. With the overall devaluation of NFT tokens in the whole market, the APENFT coin followed the trend in the second quarter. The third quarter however started quite strong, with the value of the coin coming closer to its original high from the first quarter. Unfortunately this positive form could not be kept, and following a big decrease in mid-August the token now sits on a 12% devaluation compared to Quarter 2.
Market expansion
Even though it was not all sunshine and rainbows for APENFT they have continued to form partnerships with other NFT marketplaces and collaborating with several artists. They have also acquired multiple high-profile artworks which helped them to stay as a big influence in the market.
Upcoming challenges and future plans
The final part in figuring out if APENFT will be a solid investment for the third quarter of 2024 will be to analyse the upcoming challenges and to take a look at the plans for the future. Following this we can more accurately give advice.
Market saturation and volatility
With the total number of NFT’s that are on offer rising and the total number of NFT’s being sold decreasing we can predict a saturation on the market. There will be a lot of supply and only a limited demand which can lead to prices of individual art pieces going down. This will also make it harder for a project to stand out because there is so much competition.
The volatility of the crypto market can also massively impact APENFT. When cryptocurrencies like Ethereum fluctuate in price, project like APENFT that are tied to these currencies experience price swings. This can decrease investor confidence and make it harder to keep current clients.
Expanding partnerships
To counter these challenges the project plans to keep expanding their partnerships with other NFT marketplaces and artists. The project continues to invest in high-profile art pieces which then will be digitalized and offered as an NFT. With millennials being more attracted to physical art than ever before the demand for art pieces can continue to rise.
Technological advancements
With the millennials being more attracted to art than ever before, demand for physical art keeps rising. If this demand can be converted to demand for digital art there will be huge growth potential.
Conclusion
In the end APENFT presents a mixed picture as an investment opportunity in the third quarter of 2024. On one hand the project has established itself as a key player in the NFT market and digital art space, showing its constant ability to overcome challenges. They are able to do this thanks to their excellent partnerships, as well as investing in high-profile art pieces. Looking at this the potential for future growth remains clear as APENFT continues to invest in new technology. The increasing interest in art, especially for millennials can drive the demand for digital art up in the long term.
On the other hand however there are quite a few challenges. The market saturation, the decreasing demand for NFT’s and the volatility of the crypto market bring risks with them for short term investing. The pros and cons of this project should be considered carefully for potential investors.
In summary, for believers in NFT’s and digital art, the APENFT project can hold promise as a long term investment. But in the short term the challenges and volatility should be handled carefully. Diversification of the portfolio and understanding of the market are hereby essential when making a decision.
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