The NFT Market Tripled Last Year, and It’s Gaining Even More Momentum in 2021. According to a report by NonFungible.com, the NFT market experienced significant growth in 2020, reaching over $250 million. This growth was accompanied by a nearly twofold increase in the number of active wallets. The rise of NFTs has captured the attention of investors, artists, and collectors alike, and it shows no signs of slowing down in 2021.

The NFT Market Tripled Last Year, and It’s Gaining Even More Momentum in 2021. According to a report by NonFungible.com, the NFT market experienced significant growth in 2020, reaching over $250 million. This growth was accompanied by a nearly twofold increase in the number of active wallets. The rise of NFTs has captured the attention of investors, artists, and collectors alike, and it shows no signs of slowing down in 2021.

But what exactly is driving the success of the NFT market? One concept that can shed light on this phenomenon is product zeitgeist fit (PZF). PZF refers to the ability of a product to resonate with the mood of the times and connect with users on an emotional level rather than just a functional one. When a product has PZF, it feels culturally relevant and captures the attention and support of a particular group of people. It's not about being objectively better than the competition; it's about being culturally relevant at a specific moment in time.

Many startups fail to gain traction because they lack PZF. They may have great technology or execution, but if no one cares about their product, they are doomed to fail. PZF gives startups a thousand extra chances as they work towards achieving product-market fit. In the case of the NFT market, despite its complexities and challenges, it continues to gain momentum because it holds PZF. People are drawn to it, investing in it, and building upon it, even though it may not be the easiest technology to use.

There are several tests that can help identify if a product has PZF. The "Nerd Heat" test refers to the enthusiasm and dedication of talented individuals who are working on a product, driven by their excitement and belief in its potential. The "Despite Test" examines whether people are using a product despite its flaws or imperfections, indicating an emotional connection beyond mere functionality. The "T-shirt Test" looks at whether people outside the company are proudly associating themselves with the product, indicating a movement rather than just a product. Finally, the "Eyebrow Test" assesses the initial reactions to a product, which may be controversial or misunderstood at first but hold the potential to solve important problems elegantly.

The constant evolution of the zeitgeist creates opportunities for innovators and disruptors, especially in consumer tech. To harness this opportunity, it's important to find something that resonates with a group of people at a particular moment in time. Framing the story of your company around why it matters, rather than just what it does, is crucial. Authenticity should be maintained throughout product development, and the mission should guide decision-making. Additionally, hiring individuals who are connected with these ideas and giving them a reason to cheer for the company can further enhance PZF.

If you're looking to shape the future rather than just follow it, pay attention to the things that are broken and terrible but still matter to people. Look for the raised eyebrows, the T-shirts, the nerd heat, and the continued use of a product despite its shortcomings. These indicators can help identify products with PZF that have the potential to become the next big thing.

In conclusion, the NFT market's exponential growth in 2020 and its continued momentum in 2021 can be attributed to its product zeitgeist fit. By resonating with users on an emotional level and capturing the cultural relevance of the times, NFTs have gained significant attention and support. To leverage PZF in your own endeavors, focus on finding something that matters to a group of people at a specific moment in time, frame your story around why your company matters, maintain authenticity, and hire individuals who are aligned with these ideas. With these actionable steps, you can increase your chances of success and create a product that people care about.