If you are an NFT enthusiast and discouraged to see the drop in NFT sales due to the winter market in 2022, let us tell you what you wanted to hear! NFTs are going nowhere. They are here to stay and find more unique applications in various industries this year.
Non-fungible tokens have come a long way since they first emerged and have witnessed humongous growth in 2021. Considering their unique nature and innovative applications in numerous industries, it’s natural to be curious about their potential.
After experiencing the effects of the harsh crypto winter in 2022, the industry is now expected to bring many new trends and developments in 2023. In this article, we’ll look at the various trends likely to shape the industry in 2023. So if you want to stay ahead of the curve, read on!
The Backstory of NFTs
2021 was a remarkable year for non-fungible tokens. Perhaps the most talked-about sale of 2021 was the $69 million sale of “Everydays: The First 5000 Days” created by the digital artist Beeple, aka Mike Winkleman. This high-profile NFT sale demonstrated how valuable digital collectibles can truly be and caused many people to start paying closer attention to this burgeoning market.
The rise of platforms like Ethereum has also made it easier than ever before for creators to monetize their work by selling digital artworks. Many popular artists such as Grimes and Snoop Dogg have begun selling their own artwork as digital collectibles, further increasing public interest in digital art collecting. Considering the huge surge in interest throughout the year, NFT was named the word of the year by the Collins dictionary in 2021.
As non-fungible tokens have been a hot topic in the crypto world since 2021, many industry experts started predicting their success or failure. However, digital collectible trades didn’t go as expected due to crypto market volatility and other external factors. Despite these challenges though, various applications have been explored for various use cases such as loyalty programs, ticketing, incentive-based gaming, and metaverse applications – showing that non-fungible tokens are here to stay.
The new year has already started with a rise in NFT sales by 26% in the first week of 2023 compared to the last week of 2022. Some of the top trends of 2022 like ticketing, PFPs, and gaming will continue to be relevant this year as well along with other applications.
Top NFT Trends to look out for in 2023
Decentralized Finance: Non-fungible tokens will be used as collateral for crypto loans and secure lending platforms, allowing users to leverage their digital collectible holdings without going through a third-party intermediary. Furthermore, DeFi marketplaces with rewarding mechanisms based on staking non-fungible tokens will start becoming popular.
Gaming: NFT gaming will reach new heights in 2023 with more Play-to-Earn and Move-to-Earn mechanics being implemented within the blockchain gaming ecosystem. Players can earn rewards for taking part in various gaming activities and making progress within games. The rewards can be exchanged for real money or other digital assets depending on the platform.
Virtual Events: Virtual events such as concerts or conferences held on metaverse platforms like Decentraland or Cryptovoxels will see widespread usage of digital collectibles. All this is due to their ability to provide digital avatars, tickets, assets, and memorabilia required by users attending those events. This could potentially revolutionize how we experience events in the virtual world.
Ticketing: NFT ticketing services will be heavily adopted by both virtual event organizers as well as physical event venues. With ticketing services, it’ll be easier for organizers to manage ticket sales and help prevent scalping among other things.
Profile Picture (PFP): PFP communities powered by non-fungible tokens could also rise in prominence over 2023. Several businesses from virtual communities are building their services using NFTs instead of JPEG images alone. Moreover, these communities could also offer loyalty memberships attached to exclusive collections from different brands.
Music NFTs: Music non-fungible tokens are poised to enter mainstream adoption this year. Famous music producers started offering partial ownership of music tokens via certain marketplaces already – this spells great news for musicians and their fans alike!
Apart from these trends, let us also discuss several novel use cases for NFTs this year.
Unique Applications of NFTs in 2023
Artificial Intelligence: AI-enabled non-fungible tokens bring a new level of uniqueness by allowing them to generate dynamic visuals based on algorithms. This could revolutionize the market as never-before-seen pieces of art can be created through AI tools. Algorithm-based generative digital collectibles also make it possible to update the tokens according to data changes or occurrences in the future.
Digital Twin: These tokens can have a great impact on businesses that rely on manufacturing products. They allow businesses to test their products extensively through virtual realms while having a secure record of their work stored on the blockchain. Digital Twins also reach far beyond just product testing. They could be used for designing buildings or even entire cities before construction begins.
Metaverse Art Galleries: These are expected to take the world of digital art by storm in 2023 with their interactive and immersive experiences. Famous auction houses have already begun creating exclusive spaces for these galleries, giving users the chance to view artwork from all over the world in one place.
Healthcare: Digital collectibles can be used for securely storing patient records, incentivizing patients for research data collection, and providing easy access for professionals who need access to medical information quickly and accurately without any potential tampering issues that may arise with traditional paper documents.
Real Estate: Non-fungible tokens have been increasingly adopted in the real estate space as well since they allow both buyers and sellers to have secure transactions without any possible tampering issues associated with physical paperwork. Digital records will reduce paperwork significantly while still ensuring absolute accuracy when legal documents need to be exchanged between parties.
Virtual Waiting Rooms: These are another unique application for non-fungible tokens in 2023 as user influx continues to increase across various platforms due to metaverse and Web3 technologies. Ventures can use these waiting rooms as an effective method for managing traffic volume within their platform while ensuring each user is granted access securely.
The Future of NFTs
It’s no secret that non-fungible tokens have been around for some time now, but 2023 is when their full potential will truly be realized. With their unique features, NFTs can help owners become part of exclusive clubs or gain access to rare digital assets. The possibilities are limitless if you allow yourself to be creative and explore the world of digital collectibles!
NFTically is a full-stack NFT marketplace metaverse that helps you launch your own collections without any technical knowledge. Non-fungible tokens can open doors that you never even knew existed – so launch your own collection in 2023 and make the most of this rising industry.