NFTs are hugely popular, having a great impact on all spheres of life. NFTs affect how we buy and sell and create music, photographs, films, art, and branded goods. In addition, NFTs are integrated into gaming networks, decentralized finance, layer two smart contract funding, and more. Big players have invested heavily in NFTs. NFT marketplaces are now being created to facilitate intellectual property trading in the scientific and technological fields. Innovative technology will become even more relevant in the future, and the NFT sector is exceptionally promising. There are top NFT trends in 2023.
What is NFT?
Non-fungible tokens are blockchain-based digital tokens representing ownership of a digital asset – an image, text, video, music, artwork, sounds, game, etc. NFTs use advanced blockchain technology to verify ownership of assets and digital content. The buyer receives the token of the original copy and the rights to use it but cannot reproduce and copy it.
At the moment, NFTs go beyond the copyright of unique digital assets. The history of the asset and its creator is recorded as proof of ownership. Digital images are converted into tokens to prevent duplication or copying of the concept.
The hottest NFT trends
Following the rapid growth of NFTs, new use cases for this innovative technology. In 2023, NFTs will be featured in art, games, decentralized finance, smart contracts, fundraising, and more. So what will NFT space bring us in 2023?
1. Loans and NFTs
Investors use their NFTs and NFT collections as collateral to obtain loans for new potential investments and emergencies. NFT loans are a promising new option. A wide variety of DeFi platforms have been developed this year that support NFTs as collateral for loans. NFT is a marketplace where people can offer loans to other users or place NFT assets as collateral for loans.
2. NFT: Fashion Trends
In the spring of 2021, fashion attempted to enter the world of NFTs. For example, Kate Moss released a series of videos with the Moments in Time Collective. Fashion and retail businesses want to keep up with the times by exceeding customer expectations. NFT organically fits into fashion trends. For example, a partnership between Superplastic and Gucci resulted in the launch of the project SuperGucci NFT.
3. Major brands are taking advantage of NFTs
NFT is attracting interest from leading brands in many fields. NFT collectibles are produced by well-known brands such as McDonald’s, Taco Bell, Louis Vuitton, Nike NFT, Campbell’s, and Gucci. In addition, NFTs are used to raise money for charity, increase social media engagement, generate new revenue streams, and increase brand loyalty. Using NFT to create brand value has become a new approach in many brands’ marketing strategies, and this trend will become even more relevant in 2023.
4. NFT and the Real Estate Market
NFT game “play to earn” is now at the peak of popularity. The so-called crypto games allow users not only to have fun but also to earn good money. Weapons, Skins, characters, in-game currency, and even virtual lands in the Metaverse can be traded, bought, earned, or sold for profit, just like any other NFT.
The real estate market will change dramatically. We will roam the Metaverse and own territory in virtual space. An NFT is a kind of digital document that is written into a digital ledger. We will soon see technology enabling people to buy and sell real estate in the digital realms in bulk. NFTs that allow you to earn money are popular in the game The Sandbox.
5. Intellectual property and NFTs
NFT markets are being developed to facilitate trading intellectual property in technology and science. The interaction of investors with scientists, investors, and collectors hold great prospects. The platform RMDS is a pioneer in this field.
6. Centralized cryptocurrency exchanges and NFTs
There is now an explosion in demand for NFTs, which is just the beginning. Auction sites specializing in NFT sales have been the main beneficiaries of the development. But since NFTs are purchased using cryptocurrencies, most consumers need to buy tokens from a centralized exchange, which is very expensive and time-consuming. Sending Ethereum can cost $100 or more. In addition, an error in the transfer process can result in a loss of funds for the client.
So the leading company Binance became the first exchange for revealing its plans by launching an NFT affiliate. FTX and Coinbase have also announced plans to launch their own NFT exchanges.
7. NFT Personalities
There are more and more use cases for NFTs all the time. For example, personal NFTs allow e-users to mint their identity on the blockchain. For example, “Personality NFT” protocols provide an infrastructure that allows you to receive individual NFTs of your personality.
Thanks to this, content creators, music artists, and ordinary people can perform in front of an audience in the Metaverse as NFT personalities.
8. NFTs and Hollywood
NFT is a new world of opportunities for merchandising, crowdfunding, and film and television projects monetization. Industry leaders have already begun producing NFT television series, including GenZeroes, a live-action NFT TV series, and the animated web comedy Stoner Cats: Stoner Cats, which raised $8.4 million in NFT sales. In addition, NFTs are used to fund film projects and TV shows. NFT will continue its integration into the entertainment industry.
9. Social media and NFTs
Instagram is actively looking into potential use cases for NFTs. In addition, Twitter, YouTube, and TikTok are interacting with the NFT world. YouTube plans to pay special attention to the area of NFT as its main priority. In addition, Twitter supports the use of NFTs as profile pictures.
10. Venture money and NFTs
The number of venture investments and money spent on NFTs will increase. 01 Advisors and Velvet Sea Adventures announced in February 2022 that they would invest $100 million in the Pixel Vault, Inc. NFT platform. Kleiner Perkins and Andreessen Horowitz together announced they’d be making a $170M Series B investment into Tom Brady’s NFT project: Autograph. Buyers have access to closed communities, exclusive content, real-life experiences with NFT creators, and so on. Interest in this industry will continue to increase because investors see great prospects in NFTs.
11. Alternative networks and NFTs
NFT developers have started building their applications on more cheap blockchains than Ethereum (e.g., Avalanche and Solana). This area has attracted more and more NFT collectors who could not transact on the Ethereum blockchain. Now alternative chain systems handle hundreds of millions of dollars of NFT volumes. And this trend will increase.
Conclusion: NFT space
NFTs have made rapid inroads into everything from the arts to gaming to investing. Non-fungible tokens have not yet revealed their full potential. Investors are betting big on NFT, Meta, Twitter, and Reddit are working on NFT projects, and new NFT startups are popping up every day. Collectors, fans, and investors trust NFTs. Its future of it promises to be promising. Surely, it will be even more new NFT projects.
NFT technology makes people inhabitants of the Metaverse. in addition, the technology will become even more relevant and penetrate the sphere of the sphere: gaming, real estate, intellectual property, art, finance, and so on.
The non-fungible token (NFT) market is growing at a CAGR of 35.27%. The largest NFT marketplace in volume and asset selection is OpenSea, which has been operating since 2017.
Non-Faultible Tokens are among the top asset types. It is expected to register an incremental growth of USD 147.24 billion between 2021 and 2026.