As far as 2022 is concerned for the crypto world, a sudden crash owing to some reasons followed by a slight growth could shape the basis for the next boom phase. The market of non-fungible tokens (NFTs), on the other hand, has not suffered much, despite low trading volumes which resulted from the crypto bearish sentiments. As we tread into the last part of 2022 with a blockbuster holiday season, there are some trends observed across the NFT world that might tune their market for the next year.
Lets have a look at popular NFT marketplace trends
- NFT Games
- NFT Ticketing
- Avatar and Profile Picture (PFP) NFTs
- Fractionalized NFTs
- NFT Twins
- Artificial Intelligence NFTs
- Entertainment NFTs
- NFT Finance
NFT gaming is not new, as CryptoKitties showed the domain’s potential in 2017. Today, the domain is home to a sizable portion of the Web3 community. With mechanisms such as play-to-earn (P2E), move-to-earn (M2E), and rentals, NFT gaming is revolutionizing how the general public perceives video games outside the Web3 movement. It picked pace during the global pandemic when games such as Axie Infinity provided opportunities for its players to earn money to lead their lives amidst prolonged lockdowns. The game marketplace model can benefit from metaverses, virtual worlds that provide immersive user experiences.
Ticketing has been an industry where counterfeiting has costed fans and organizers fortunes. With NFT marketplaces, digital tickets can now be sold easily, and fans can have enhanced experiences before, during, and after the events. For organizers, royalties on ticketing NFTs can yield profits when they are secondarily sold, and attendee information can be known priorly to eliminate security concerns. Performing bands such as King of Leon have utilized NFT ticketing marketplaces to sell concert tickets that give exclusive perks to buyers. These tickets can also act as collectibles post the events through the use of the semi-fungibility function.
Avatar and Profile Picture (PFP) NFTs
The profile picture NFT market has been a significant one next to the art NFT market, which can be seen by statistics collected over the NFT boom. Do you know that CryptoPunks, the popular pixelated NFT collection, was given out for free when it was released in 2017? Half a decade later, the minimum price for NFTs from the collection stands at more than $400,000. Such avatar/PFP NFTs give a sense of digital identities and community belonging through exclusive parties to holders, which have made firms beyond collections such as the Bored Ape Yacht Club (BAYC) to explore new possibilities such as metaverses and games.
While most NFTs focus on art, their prices are cited to be too high for general investors to partake in the Web3 movement. Fractionalization has come to the rescue by enabling NFT items with huge demand to be registered as fungible crypto tokens. These tokens can then be sold to people at low costs, reducing the entry barriers to the Web3 world. Token holders will be consulted through referendums for future moves with the total NFT item. These tokens can even be the pathway to creating communities united by fractional ownership of the same NFT asset, which can be seen in the case of fractionalization of the popular Doge meme.
Even though the topic might sound weird in plain sight, NFT twins focus on creating NFTs for physical products. These are also called phygital NFTs in recent times. These NFTs can be useful for real-world brands that strive to reign in the modern world where counterfeit products are nearing original quality. Apart from serving as authentication factors, NFT digital twins can be helpful in giving exclusive access to the brand’s loyal community perks. Multiple brands across apparel, alcoholic beverages, and antique collectible industries have looked upon NFTs as the solution to thrive in the future.
Artificial Intelligence NFTs
With the phenomenal rise of NFTs within a few years, another element of Web3 – artificial intelligence (AI) has entered the tokenized world too. In recent times, generative artworks and digital assistants have taken the form of NFTs. Generative art NFTs are based on artists feeding algorithms with color and design combinations that will create NFTs once buyers purchase them. NFT digital assistants, better known as iNFTs, can be called the Web3 versions of Alexa or Siri. These can be useful in metaverses, as you can interact with them as if they were part of the user community and leave them to monitor your metaverse room when you go offline.
The entertainment industry has been one of the heavily-criticized domains for its ultra-centralization of monetary benefits to streaming service providers that leave only a little for creators who worked hard. With NFTs, the sector is up for another change, as creators and fans can get closer through NFT marketplaces. Music albums, video clips, and even movies (real-world and animated) can be sold as NFTs (fractionalized/non-fractionalized). Popular examples include recent works from DJ 3LAU, the animated series Stoner Cats, and collectible NFTs based on the movie “Dune.” The niche is expected to go big in the next decade as new musicians explore the boundless possibilities that Web3 has to offer.
During the NFT boom in 2023 , the financial arm of Web3, better known as decentralized finance (DeFi), saw massive growth. Their nature of enabling true peer-to-peer transactions powered by smart contracts and in-platform communities run by decentralized autonomous organization (DAO) protocols attracted the attention of many crypto enthusiasts. With NFTs acquiring recognition, multiple DeFi platforms have started accepting these assets as collateral for borrowing. One can even stake their NFTs on liquidity pools to earn passive rewards without losing the NFTs, in case they do not use them often.
Shedding Some Final Thoughts
Non-fungible tokens have recently become a revolutionary innovation, as they provide the world with endless applications to make human lives easier. Although naysayers might say that blockchains consume a lot of energy and over-decentralization might affect livelihoods, alternative solutions have been proposed in both cases and implemented in the former case. Networks such as Solana and Avalanche run on energy-efficient mechanisms, which have been steadily gathering their adopter base. As far as this blog is concerned, NFT marketplaces are a great business option for startups, creators, and brands alike, as building these platforms can be easy if one can afford sufficient help. There are some NFT marketplace development firms that assist people in realizing their NFT venture ideas quickly at affordable prices.
Text to add at the bottom of your article: Check out this article for further reading on an introduction to NFTs for designers.