If you ask a crypto investor about digital tokens, then the first thing they will mention is “NFTs.” NFT or Non-Fungible tokens are the fastest and most popular sector in the cryptocurrency market. But when did NFTs become so popular? And how big is the NFT market?
The popularity of the NFTs among brands and investors rose when Taco Bell sold out its trending NFT art in minutes, and that too at the highest price. As per Financial Times, the NFT market had a total worth of $40 billion in 2021. The NFT market is consistently growing.
But the question arises why? Why are brands moving towards NFTs? Why are investors choosing NFTs rather than any other cryptocurrency? What are the possible NFT trends that you can accept in 2023?
These questions may come up in your mind. So, to answer all the queries and confusion related to NFTs, we have come up with this article. You will find all the details related to NFTs and the upcoming trends of NFT in 2023 in this article.
What is NFT?
NFT or Non-Fungible tokens are the cryptographic or digital assets that follow blockchain technology. However, these tokens are non-fungible, which means each token possesses unique metadata and identification code. This helps a user to distinguish between two NFTs easily.
In other words, one NFT cannot be traded in exchange for getting another NFT of the same value. No two NFTs possess the same valuation. When you trade NFTs, you will get the NFT with a different token value.
For instance, one dollar is equivalent to another dollar. The same applies to bitcoin. One bitcoin is equal to another bitcoin’s value. While every NFT possesses different values. The unique features of NFTs are defined here:
- Each NFT has a different signature and worth.
- NFTs typically work under the Ethereum blockchain, but other blockchain networks also support it.
- NFTs are generally used for digital objects that can be both tangible and intangible.
- The digital assets that can be traded with NFTs include artwork, GIFs, music, designer sneakers, or virtual avatars.
- NFTs owners get ownership rights and can store specific information in NFT metadata.
Upcoming NFT Trends of 2023
According to CNBC reports, in 2021, the global NFT transaction market achieved the milestone of $17.6 billion. This figure is 21,000% more than that of the data for 2020. It is also believed that in 2022, this data will cross $21.33 billion. NFTs are becoming increasingly popular as more people adopt them.
In 2022, it is speculated the NFT trends will further enhance the NFT transaction market. Below is the list of some of the NFT upcoming trends in 2022 :
1. Personality NFTs
Personality NFTs are among the upcoming NFT trends in 2022 that will enable users to get an NFT similar to their personality. This will allow the users to make their identities a part of a blockchain network. This trend will play an essential role in the world of Metaverse. In 2021, many personalities performed in the Metaverse by using their personality avatars.
This development and high adoption by musical artists and content creators boosted NFT personalities. It is expected that in 2022, more and more artists and content creators will join these NFT trends and perform in Metaverse with their NFT personalities.
2. NFTs in the Fashion Industry
Fashion industry that deals with clothing, lifestyle, accessories, footwear and makeup have limitless possibilities for using NFTs. With the help of NFT 3D modeling, a fashion brand can use human avatars and 3D visualization to exhibit its products. Therefore, 2D photography will get replaced with the NFT 3D modeling model. It has been adopted by some big brands like Adidas and Nike.
During the Metaverse fashion week (MVFW), these brands provided an immersive shopping experience to the event attendees. All of this has been possible only because of the massive opportunities that NFTs provide us. It ultimately makes fashion a part of this NFT upcoming trend in the 2022 list.
3. NFTs in the Gaming Zone
Apart from the trending NFT art and fashion, the next trend in this list is the gaming zone. The gaming NFT trend is boosted with the entry of the play-to-earn model and Metaverse. Virtual gaming system is already prevailing in the market, and many companies are developing such games. NFT games and tokenization will help the users to earn better by playing.
Virtual Games like Roblox and other gaming models help the players to earn assets like NFTs and other collectibles. These in-game collectibles can be sold, borrowed, or used as collateral in the crypto market.
4. NFT Event Passes
In 2021, some NFT virtual events were carried out. One example of an NFT-virtual event is the Eventbrite event. With the successful implementation of this technology, several event organizers want to opt for NFT passes rather than traditional barcoded tickets.
Some of the virtual events that were part of these NFT trends include the exhibition event by Mayweather and Don Moore. Even Coachella recently announced that they would sell their lifetime passes in the form of NFTs. Such a rise in the adoption of NFT boosts this trend.
5. NFTs to be hosted outside Ethereum Blockchain
Most of the NFT projects are used on the Ethereum Blockchain network. Many investors use the Ethereum Blockchain naturally for the NFTs. However, in 2022, it is believed that investors may shift to other blockchain networks for NFTs. The reason for this anticipated shift is the major drawbacks of using the Ethereum blockchain.
Under the Ethereum blockchain network, investors have to face the issues of high gas fees, congestion, and computation issues. These issues can be resolved with the ETH 2.0 implementation. However, the Solana network is a rapidly growing network popular for NFT and decentralized finance projects. Therefore, in 2022, a blockchain network shift can be seen in NFTs.
6. Profile Picture NFTs
The reach of NFTs is going to cover social media as well. Social media platforms like Twitter have allowed users to interchange profile images in the form of NFTs. On Twitter, you may see some variations of animals in profile pictures. The common variations include a giraffe and a monkey. These profile pictures are nothing but NFTs.
Recently, many crypto-enthusiasts chose to keep their NFTs as their profile picture on social media platforms. This digital asset of an owner will be displayed in a unique hexagon shape that will identify the person as the owner. Such a shift in social media platforms makes it a part of NFT trends. It is expected that more and more NFT users will become part of these NFT trends in 2023.
7. NFT Music Albums
The following NFT upcoming trends in the 2022 list are the NFT music albums. In this trend, the marketing and promotion of music albums are done with the application of NFTs. It is expected that streaming networks will offer creators a way to earn money in 2022. For instance, OurSong, an application, allows creators to convert their music and artwork into NFTs. By converting the music into trending NFT art, creators can sell them at a price worth much more.
The Final Words
With the entry of the Metaverse into the digital world and Facebook holding command of the Metaverse, it wouldn’t be surprising if the NFT market grew to more than $40 billion. The NFT market has already achieved a milestone by the end of 2021, and with the upcoming NFT trends, this market will become a new investing and transacting place for brands. However, this market is still growing, and it will be early to predict its future by looking at the trends. Therefore, let’s see how the digital world will take a new shape in 2023.