Top NFT trends in 2022
One of the defining technological developments of the past decade has been blockchain technology. The internet and the digital age we live in is evolving rapidly, with Non-fungible tokens (NFTs) exploding onto the scene in the past few years.
For those still a little uncertain about what an NFT is, how it works and the types of assets that can become an NFT we have created the perfect guide for you here.
A quick definition…
An NFT is a token on the blockchain that records the digital ownership of a specific asset. This token is unique and cannot be traded for a like-for-like asset. NFTs can cover anything from digital art to music, games, and real estate.
If you’re wondering why NFTs hold such a significant place in our consciousness right now? Put simply, in 2021 people spent approx $40 billion on NFT marketplaces and 2022 is on track to easily surpass this total!
NFT means utility in terms of establishibng your online ID – whether it’s about using your crypto wallet or creating your WEB3 website, NFT grants your authenticity.
What has happened to the NFT market in 2021?
Interestingly, NFTs have been around for much longer than people expect, with one of the first making an appearance in 2014. However, the NFT market truly made its breakthrough in 2021.
With the popularity of the digital artist known as Beeple, sports organisations like the NBA launching NFT marketplaces and groups like the Bored Ape Yacht Club, the market grew exponentially in 2021.
Towards the end of 2021 and moving into 2022, more and more brands are venturing into the world of virtual reality and NFTs. As the different branches of blockchain technology and Web3.0 started to connect, expectations are that the NFT market will continue to grow.
However, with challenges faced in the world, this growth may not be as straightforward as previously thought. To give yourself the best chance to make a successful investment in NFTs in 2022, we’ve highlighted the top NFT trends that you should be aware of.
What are the top NFT trends in 2022?
So let’s get down to business and explore the top NFT trends that are driving the growth of the market in 2022.
Nothing in life is guaranteed and certainly, investors have faced challenges when it comes to crypto and NFT in the first half of 2022 but this hasn’t stopped big brands, well-known artists and the general public get excited about the possibilities of NFTs.
Big brands are getting involved
One way to legitimise emerging markets and new technologies is to get established big brands to show an interest. It is common for early adopters to prove the concept works and eventually the big players will take the leap and this is what has happened with NFTs.
We’ve already talked about the NBA launching their own NFT marketplace but the likes of Gucci and Mcdonald’s are now active. Certainly, the fashion and food industries are leading the way, releasing limited collections of NFTs and this is helping not only connect their brand with a new audience but ensure consistency across different platforms.
Just like when Nike launches a limited edition pair of trainers in their physical stores, brands that launch a limited NFT collection have seen the value of those NFTs go from their original price to a much higher level on secondary NFT marketplaces.
Music and NFTs continue to collide
Mirroring the actions of big brands and sports stars, artists and organisations within the music industry have started to show an interest in NFT.
There are two key reasons for musicians and industry leaders to get involved with NFTs: income and engagement.
NFTs allow the musician to build specific terms and rules into the smart contracts they are based on. This means it could include access to particular events, music launches and more. This not only builds that connection with fans but also helps control how income is generated.
Moving through 2022 and beyond, the concept of NFTs will remain popular with musicians given the ability to retain ownership of the rights to their music. This means being able to potentially earn more royalties thanks to not having to pay middlemen.
NFT and gaming
The relationship between gaming and NFT can be a complex one to understand, even for those who would traditionally call themselves gamers.
In the past, games followed a traditional pattern where you purchased the game, played it and the assets owned in-game would have no real-world value. Subsequently, play-to-earn games and in-game purchases were developed and this changed everything.
People could purchase assets like skins for characters, weapons or special players using real-world money. Still, they could only be used in-game but thanks to the blockchain this has gone one step further.
This is where the idea of GameFi comes in, the concept of blockchain games that enable people who play them to earn financial incentives like NFTs. Gaming is one of the largest markets in the world and continues to develop, making it an NFT trend to explore in 2022.
NFT Art – Fractionalization
The most famous examples of NFTs that have bridged the gap between the blockchain world and mainstream media have been digital artwork. Leading the way are artists like Pak and Beeple, with collections selling for tens of millions.
One of the most publicised NFT art sales was Beeples Everydays: The First 5000 Days which sold for $69.3 million in early 2021.
In 2022, we’re seeing art continue to dominate but with a particular focus on the idea of fractionalization. This involves taking a particular asset such as a piece of art and turning it into a collection of fractionalized NFTs.
So why is this trend going to prove popular? Put simply, it opens up the market to an entirely new audience. Not many people around the world will be willing or able to spend millions on a piece of digital art, but many will be interested in paying $1000 for a fractionalized NFT of the artwork.
The well-known artist Banksy has seen some of his artwork acquired by companies who plan to sell collections of NFTs in exactly this way. Expect to see more artists explore this option as a way to sell their art and engage with audiences, as well as organisations aiming to make a profit.
NFTs and the Metaverse
When it comes to trends in 2022, you’re going to struggle to match the growing interest in the idea of the Metaverse. A digital world that utilises virtual reality, it has become the focus for some of the largest tech companies including Meta and Google.
Given the potential that the Metaverse offers and the growing interest, it makes sense that NFTs are going to play a huge role in the Metaverse.
A digital world opens up more options and greater utility for NFTs and as a result, brands from all industries are already looking to build a presence in both sectors. A perfect example is Nike, which has purchased a company that makes virtual shoes. Expect to see countless other companies not only venture into the Metaverse but maximise revenue through embedding NFTs in their offering to customers.
The rise of the Solana network
For a long time now, the Ethereum blockchain has hosted the vast majority of projects that focus on NFTs. This is because it is an established, influential and widely accepted platform. Recent reports have suggested that 95% of NFT marketplaces have chosen to operate on the Ethereum blockchain.
However, recently we have seen a rise in NFT projects choosing to be hosted on a different network. One of the leading networks to take advantage of this is the Solana network. They are particularly popular for NFT and DeFi projects.
It is expected that this trend will continue into 2022 and beyond as more projects see the success of the early disrupters. The Ethereum network has some well-known downsides including high gas fees and whilst these may well get resolved soon it does present opportunities for other networks.
Whilst we have summarised some of the top trends of 2022, more and more trends are developing as we move through the year. This is because the digital world and physical world continue to collide in a range of exciting and potentially lucrative ways.
We will regularly update our blog with articles on everything from domain trading news to crypto updates and Metaverse development. Make sure to check out our platform, social channels and Discord to be part of the conversation and take advantage of the trends as they start to develop.
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