Problems plaguing the NFT market
1. Insufficient liquidity
The excessive segregation of the various NFT markets makes it difficult for users to exchange liquidity and retrieve information. This is the main cause of the overall low liquidity of NFTs. Apart from this, the high threshold at which users can access NFT assets and the lack of incentives to trade are also major obstacles.
2. Defective pricing schemes
Unclear pricing makes it difficult for both buyers and sellers to reach consensus, which affects liquidity and capital utilization. At the same time, the NFT market's two pricing mechanisms (external feed and integrated oracles) lack timeliness, accuracy, and versatility, making it challenging to find a price reference. Most platforms experience short-term pricing failures due to illiquidity or manipulation by Big Whales. This in turn affects the use of NFT derivatives.
3. Absent NFT trading platform mechanisms
Failure to optimize the contract will result in high potential GAS fees for transactions. In addition, NFT platforms only have a single function. For example, they do not assist users in conducting pre-purchase analysis of NFTs, exposing the NFT market to rampant fraud.
4. Banal NFT project
NFT assets are still dominated by PFPs, artworks and collectibles. The overall sector is yet to witness creative and compound products.