April 14, 2022
NFT Development Trends in 2022: The Future of NFTs: More Than a Digital Collectible
Table of content
- NFT Development Trends in 2022: The Future of NFTs: More Than a Digital Collectible
- NFT Gaming
- NFT Tickets
- Avatars and PFP NFT
- Digital Twin NFTs
- Artificial Intelligence (AI) NFTs
- NFT Music
- NFT Art (Metaverse Galleries & Auctions)
- NFT in Healthcare Space
- NFT in FinTech Space
- NFT in Real Estate Space
- NFT as Brand Identity
- NFT and Social Media
- NFT in Charity
- NFT as an Alternative Subscription
- Moving Away From Ethereum
- The Boom of Web 3.0
- How Can Interexy Help?
- Final Thoughts
You have probably heard of NFTs a lot – a buzzword in the digital space today. However, the immense popularity they gained only in recent months with the support of large enterprises and the availability they offer. NFT stands for a non-fungible token that can represent anything from digital art to the first tweet. These assets even overcome cryptocurrency and show no signs of slowing down.
Since we now know what NFT means, let’s see the why’s and how’s through numbers. According to Yahoo, the global NFT market is suggested to grow from $14.02 billion in 2021 to $21.33 billion in 2022, with a compound annual growth rate (CAGR) of 52.1%. In addition, the market is expected to reach $82.43 billion by the end of 2026 at a CAGR of 40.2%. So the facts are valuable to consider entering this sphere, right?
However, most people still believe that these tokens are another popular trend. In reality, the same happened with cryptocurrency, and now they are used for most payments, like salary in the IT ecosystem and digital money for buying property. Even though the future of NFT is still unknown, experts believe they will soon become a happy medium for most companies to perform while also allowing a wide group of people (artists, musicians, gamers, etc.) to gain revenue in the online format. Learn more about how to drop the NFT collection here.
Since the industry is growing every hour and more competitors are trying to reach new heights, it is vital to stay updated and informed regarding the newest market advantages and trends popular among users. We carefully curated this guide to show you NFTs that are going to blow up in the upcoming months. Do not waste time on searching – keep reading and overcome the competitive industry. Let’s get started!
With the rise of NFT popularity, gamers have started to notice that these tokens are now adapted into their favorite games. NFT-based gaming projects allow players to use NFTs to provide new avenues for gaming experiences that have already been crafted, including blockchain-based player-vs.-player battles and NFT-storefronts that provide NFT purchases from other gamers. You won’t be surprised to hear that the future of blockchain gaming is full of NFTs. Although it wasn’t the first industry where non-fungible tokens appeared, NFT gaming is now one of the most popular domains.
These tokens allow players to create their own gaming content and sell it on NFT marketplaces by encoding NFT-specific rules into the real asset (instead of relying on rules provided by a centralized gaming application). NFTs are now a key driver of blockchain gaming, becoming an industry standard in the upcoming future.
NFTs can now be used to represent tokens in games themselves. They turn unique NFT into a rare item that will either support gamers or create a specific challenge in the game. Experts suggest that this could potentially reduce development costs while also boosting loyalty within the game community who own the same NFT. In addition, NFTs will also be implemented onto physical gaming accessories (like cards) and later be transferred into the digital asset through integration with NFT blockchain protocols.
Today most NFT games work under the play-to-earn (P2E) style model. It is more commonly known as GameFi, which has gained popularity through the success of blockchain-based games like Axie Infinity. For example, gaming-related NFTs gained $4.8 billion of revenue last year. What is more, only in January 2022 alone, blockchain games, as well as their infrastructure, gained an additional $1 billion, adding to the $4 billion revenue in 2021, as DappRadar found out.
GameFi provides various In-game items that could fall under the umbrella of virtual avatars, video game skins, cards, weapons, clothes, and even armor. Since gamers are now allowed to earn tokens while playing and then sell these rare NFTs on any chosen marketplace, NFT is expected to change the whole gaming industry and affect the impact of games overall.
NFTs refer to unique digital tokens placed on the blockchain. Once they are made on the blockchain, they are sold to customers digitally. Therefore, customers can then store their assets in a specialized digital wallet that can be used from any device. When it comes to the ticketing system, event holders can mint the needed number of NFT tickets to their liking on a blockchain platform. They can even code the NFTs to provide a sale price or run the sale like an auction where people can suggest their price for tickets. Like with any other industry, customers will store these NFT tickets in their wallets and produce them when visiting the event. Since the NFT impact tends to grow in upcoming years, experts believe that NFT ticketing is the next domain you may consider. Many large companies have already launched their own NFT tickets to try the trend in reality.
Avatars and PFP NFT
PFP NFTs appeared almost at the same time as NFTs themselves. Launched in 2017, Larva Labs’ CryptoPunks is still one of the most successful projects in this niche. The idea of PFP NFTs relates to a status symbol is the community that is booming around such projects. One of the main features of PFP NFTs is their bearing artwork. The basic model used in CryptoPunks and other famous projects used by other projects is to create approximately 10,000 characters created following a simple template. Each avatar has 10 traits like cloth items, hairstyle, and accessories, and each trait has 10 variables. This not only creates a scarcity within the collection, making some avatars more popular, but also gives a set a unified feel.
Since most PFP NFT projects feature just half of the avatar – head, and shoulders, they tend to perfectly fit the two-dimensional online social interactions we all know today. This is why the BAYC, CryptoPunk, or Pudgy Penguin NFT can work as a unique profile picture or pseudonymous identifier on various platforms we all use to communicate on the internet.
Digital Twin NFTs
Today almost any object like products or services can be duplicated by a digital twin. For this purpose, companies use virtual reality or 3D graphic modeling technology. This helps to create or copy authentic tangible and intangible physical things into a digital version.
Data is exchanged between the replica and the real object, where the replica will be updated through the actual system’s sensors, which allows real-time monitoring of the system’s status. Many market giants have started making their mark on the digital realm by using the digital NFT twin. A great real-life case is Adidas which has teamed up with fashionista Karlie Kloss to provide digital Adidas sneakers to users on the blockchain.
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Artificial Intelligence (AI) NFTs
Even though NFTs can be generated using AI, in 2022, a new booming trend appeared – the integration of Artificial Intelligence within NFTs. This can provide completely new, dynamic, and intelligent experiences that are impossible with other technologies.
AI-generated NFTs are now widely used to offer unique and highly personalized experiences for token holders. Alethea AI was the pioneer in driving an intelligent NFT called “Alice.” Since this NFT is powered by potent self-learning abilities, it gains new knowledge every time it interacts with people.
To be more specific, the company has gained $16 million that they used to provide a scalable infrastructure for AI-based NFTs. They also strive to create an NFT metaverse where assets can interact and learn from each other.
NFT music is a less popular industry but still can be a great way for both musicians and fans to grow the ecosystem. NFTs create scarcity in the music space while also giving musicians full control over the subsequent ways in which their songs are distributed, as well as their rights associated. This is why NFTs open up a wide range of opportunities for musicians to enter the digital space and interact with their audience on a more efficient level.
This also provides authenticity and creates engaging communities around them while offering complete autonomy over their work. However, it is worth noting that artists still keep all rights to their music. According to recent reviews, with a transaction volume of merely USD $40.69 million in 2018, NFT music trading volume gained over $44.2 billion in 2021 and is still working its way up with an immense speed. The Music NFT segment is believed to reach a market cap of $80 billion by the end of 2025.
NFT Art (Metaverse Galleries & Auctions)
Needless to say that art is one of the domain NFT sectors today. This is because digital art usually faces threats, so NFT can indisputably authenticate the original digital art. The market is flourishing now and provides new opportunities for artists. For instanceNFT, art funds that turn physical arts into digital art trends and attract more attention to this space.
In addition, there are two new trends, known as Metaverse Galleries and Auction Houses, that allow artists to place their works in the digital gallery in the metaverse space like any other physical one. But to visit the metaverse gallery, users will need VR glasses in most cases. There is also a great boom in auction houses, where people provide their price for unique digital tokens to become single holders. Experts also believe that in upcoming years artists will destroy physical works when they have ones in NFT, which will only boost the demand for the digital art sector.
NFT in Healthcare Space
Since COVID-19 boosted the growth of digital solutions in the healthcare industry, you won’t be surprised that blockchain and NFT also take their place in medicine. For instance, we developed a healthcare marketplace based on blockchain, which allows healthcare organizations to get access to a vast range of patients’ data (from their willing) to improve their services. The same may happen with NFT, where people can monetize such data by turning it into NFT.
In addition, the NFT can become a great way to support wellbeing. A great example is Health Hero, which provides a unique character in the metaverse. When the token owner leads a healthy, active lifestyle, he can grow its character and then sell within the metaverse. Since NFT and blockchain ledger provides higher security and data protection, both may solve a common problem in healthcare, like stolen data or threats. Learn more about NFT marketplace app development.
NFT in FinTech Space
One of the most valuable opportunities of NFT for the FinTech industry is using these tokens as collateral to earn interest or get loans. Therefore, now anyone has a chance to supply an NFT representing a piece of art, digital land, game item, or even tokenized real estate as collateral and borrow money through it. These are now trending NFTs that will soon gain more popularity.
Another exciting aspect regarding the adoption of the NFT in Defi and its collaboration is the concept of fractional ownership. Therefore, NFTs add another layer of flexibility in the creation of shares of the NFT. This means investors can easily get only a piece of NFT without purchasing the whole unit. The newest for NFT-Defi collaboration is to participate in sales or launch a sweepstake competition where new users can win an NFT. Besides this, these tokens are also now used to generate liquidity. This is why many financial startups launch their own projects where they provide brand-new services based on NFT trading.
NFT in Real Estate Space
Since one of the biggest issues of investing in real estate is the complexity of transferring property ownership, an NFT’s transaction process is hassle-free. It allows a buyer to verify ownership of a piece of real estate within minutes. This is why tokens are now used in the real estate space.
Using blockchain and NFT technology ensures higher levels of security and data integrity. Therefore, it may protect buyers and sellers alike and make it much quicker and easier to transfer assets without any problems. Even though only a few retail companies transform their properties into an NFT to sell, this is an upcoming trend that will soon become a happy medium for most due to flexibility and security.
Virtual Waiting Rooms
The main issue of NFT demand is that blockchain, websites, and services can’t expand indefinitely. When talking about highly popular and rare tokens sold in auctions or in marketplaces, the platform may be damaged by the number of users. This is why the new NFT trend 2022 – virtual waiting rooms appeared.
They represent a space where users can wait for NFT drops. When you have multiple drops, you can also create several waiting rooms to handle all transactions happening with no issues. There are many ideas coming soon with this trend, but it is an absolute decision to make sure the drop will be done efficiently for both you and buyers. Learn more on how to drop NFT.
NFT as Brand Identity
Due to a high competition rate in almost all spheres today, large enterprises started adopting NFTs as a critical point in their marketing strategies. Understanding more about your target audience through their interactions with blockchain and NFTs will ultimately lead to higher loyalty and engagement. Once your clients actually enter or join your local NFT community ecosystem, like those made by Mint, you will have higher chances to leverage a person’s loyalty and bring clients a unique approach and interactions with the brand. This is why large companies are now using NFTs to get their customers into a deeper world to learn about their essential habits and can get more outreach and engagement.
NFT and Social Media
Even though the social media platforms are still far away from the complete adoption of NFTs, there is some progress in this field. For example, Twitter has accepted NFT as a profile picture. Instagram has also admitted that they are moving selfies to a new level and is now actively working to bring tokens into their platform. Finally, a well-known YouTube also will take a look at NFT adoption and its impact in 2022. So it seems that this would also become a new trend in social media.
NFT in Charity
While people are becoming more loyal to other people’s problems, NFTs can become a new way to donate money to charities. Although there are only a few if no one real-life examples, these tokens can make it easier for everyone to donate money worldwide for various needs.
NFT as an Alternative Subscription
Since a person can’t have complete control over a subscription and also pays fees for third-party services, NFTs can become an excellent alternative to subscribing. Netflix even admitted that it might use tokens to allow people to subscribe in the future. This will reduce costs for subscribers and improve the whole working process.
Moving Away From Ethereum
Costs related to NFT’s selling and purchasing lead developers to the Ethereum blockchain. This was a gold standard for most NFT projects when they were first launched in 2017. However, the demand for these tokens in 2021 also increased the fees on this blockchain. This forced NFT developers to choose more affordable blockchains when launching their projects.
Since one transaction happening on the Ethereum blockchain uses as much energy as regular household chores for half a day, the company mentioned that they are going to solve these issues. This will reduce costs spent on selling and purchasing NFT on this blockchain.
The Boom of Web 3.0
The industry of Web3 digital products is rocketed, leaving people difficult to resist. As a result, a large number of digital creators, like social media influencers, have already experimented with Web 3.0 digital products. It also presents an excellent opportunity for businesses to integrate NFTs into their influencer marketing campaigns.
The influencer marketing strategy has traditionally compensated a creator in advance for their collaboration. However, when the brand continues to use such content in the future, the creator will not be compensated. This is where NFT comes into the picture. This also seems to reduce business upfront investment because the new compensation method will be based on NFT profits. Tokens can also eradicate the problem with traceability since companies will have an opportunity to accurately track the impact of the NFT in their marketing strategy.
How Can Interexy Help?
We always stay at the forefront of any new tech attachments, therefore providing unique solutions for any business needs. Whether you have just heard about NFT and want to enter the space, or you have already come up with an idea – we can cover all the rest!
Our team is made up of only high-skilled top-notch developers that have already worked with NFTs and blockchain. Since we always strive to provide custom solutions, we make sure your project will be done by an experienced team to cater to all essential requirements.
Our NFT development services are vast and include the development of an NFT marketplace, NFT tokens, NFT healthcare solutions, NFT marketing, NFT drops, and more. We also ensure transparency at each step of the process and no hidden fees, allowing you to stay informed regarding each and every moment for peace of mind. Let’s have a free consultation to learn more about your idea!
NFT is a trend today. However, the market is snowballing, and it is vital to stay updated about the newest ways you can benefit from entering this space. While some next NFTs to blow up require time, others have already established their impact on this ecosystem. Our guide is going to help you learn what you can expect in 2022 and discover the best approach for your unique business needs. And if you want to reduce stress and time needed on everything else – we can cover you!
What is an NFT?
NFT is a short name for non-fungible tokens. NFTs are usually built using the same kind of programming as cryptocurrencies, such as Bitcoin or Ethereum.
How big is the NFT market?
According to Thursday’s NonFungible.com report, the total value of all NFT transactions worldwide reached more than $17 billion in 2021, compared to $82.5 million in 2020.
What is the NFT Trend?
The NFT trend represents something that will boom in this space in the coming months or years. So knowing NFT trends will give you an advantage in this competitive market.