The popularity of the non-fungible token (NFT), is growing year after year. Representing unique intangible items (images, memes, GIFs, 3D models, songs, videos, etc. NFTs offer digital content creators excellent opportunities to make money while protecting intellectual property. The number of NFT creators is growing rapidly, as are their customers.
Numerous world-famous brands have begun to design their own NFTs to gain an edge. Adidas, for example, introduced a range of 30,000 NFTs in December 2022. Nike, Ubisoft, and Axie Infinity are all well-known companies.
NFTs are becoming more popular, which means that there is more investment in startups and initiatives. We received many requests from Arateg last year to build NFT marketplaces and continue to receive them. Our software experts have identified the top NFT trends to help you generate revenue from non-fungible token platforms.
The recent NFT market statistics
Chainalysis, a blockchain data firm, has released the latest statistics on the NFT market. The NFT token market was valued at $41 billion as of the end of 2021. Statista reports that NFT transaction market capitalization has almost doubled between 2018 and 2020. It grew from $40.96m to just over $338m during this period. The market capitalization was $141.56 million in 2019.
According to Yahoo Finance, December 2021 saw a rise in non-fungible token sales exceeding $4 billion. The number of daily NFT transactions is now 28,421.
Noting that there were only 100 weekly sales before the second half of 2017, it is important to note that this was before the boom. In addition, there were more than 1.976 million active electronic wallets that NFTs purchased or sold last year.
Top NFT trends for 2022
Tokenization in gaming
1. Tokenization in gaming is one of the top NFT market trends for 2022. With the blockchain-powered digital environment, gamers will be able to purchase assets such as characters, virtual land, rare communities, clothing, weapons, and avatars using NFTs. We expect to see more gaming projects this year that use NFTs to market their services, attract users, and increase user engagement.
Let’s take a look at Axie Infinity by Sky Mavis, an online game that is metaverse-style. It’s a real-life story. Axie Infinity allows players to train, raise, combat, and collect digital Axis. These NFTs are stored on the Ethereum Blockchain.
Axie Infinity lets NFT owners earn in-game currency, which they can turn into real money by selling Axis or winning battles. Axie Infinity’s popularity grew significantly during the COVID-19 economic crisis.
CNBC reports that the game was the main source of revenue for some Filipinos during the coronavirus lockdowns of June 2021. Axie Infinity boasts 2.8 million players as of February 2022. The in-house NFT market generated $3.6 billion. Axie Infinity raised $9 million in 4 rounds.
2. Music Evolution
The evolution of music is one of NFT’s top trends in the coming years. Music NFTs can deliver transformative experiences and are expected to see a boom in 2022. It is now possible to create NFTs from songs, soundbites, and lyrics using the new technology. NFT creators can combine digital art with music in many formats (GIF/PDF, JPG, etc.). You can create unique artworks with music embedded.
NFT marketplaces deal with intellectual property issues. Content creators often need to waive rights to audio streaming platforms or companies. It is also difficult to track artwork distribution in sequence.
NFTs can be used to protect musicians’ intellectual property rights by storing a record of ownership in the metadata. If a customer purchases an NFT and then decides that they want to resell it later, the original creator may receive royalties for secondary and subsequent purchases. Artists may receive fair compensation through NFTs.
Celebrities are likely to follow the trend and use NFT music platforms that are based on blockchain to gain a competitive edge. Kings of Leon, for instance, was the first to release an album using a non-fungible token in 2021.
A few notable projects have been published and received recognition. Audius, decentralized music streaming and sharing service that includes social media features, was established in 2018. Audius is a cryptocurrency token called AUDIO that represents an analog to Spotify and SoundCloud.
The community of fans, artists, and software engineers runs the system. Audius now has 6 million monthly active users. This is an increase of 2.9 million users who were registered in January 2021. Audius has now attracted $13.6 million in 3 rounds.
3. Web 3.0 will gain momentum
Web 3.0, the next phase of the World Wide Web, is based upon blockchain technology. Web 3.0 is a term used by enthusiasts to refer to the third and improved version of the Internet. It includes concepts such as tokenized economics, decentralization, and decentralization.
Web 3.0 includes various components, including NFTs and cryptocurrencies, decentralized autonomous organizations (DAOs), virtual and augmented realities, and NFTs. People will be able to have greater control over their data as well as intellectual property, with all Internet content stored on the blockchain distributed ledger.
Web 2.0 is all about content reading and viewing. Web 3.0 involves asset ownership, monetizing assets, and receiving rewards. Blockchain is a platform that allows non-fungible tokens to be used in the new decentralized future.
4. Metaverse
It uses non-fungible tokens to its core. Blockchain, cryptocurrencies, and NFTs are expected to make it easier for people to enter the metaverse, a network of interconnected virtual worlds.
The NFTs allows people to create or buy persistent items (characters and weapons, clothing, etc.). You can use them in multiple worlds. A player can use an avatar that looks like an NFT in various games.
5. Personality NFTs
People became more involved with the option to live their lives online, despite the isolation and pandemic lockdowns. Celebrities, as well as other people, can create their own avatars in the metaverse.
NFTs offer musicians and artists new ways to reach their audience, gain popularity, and deliver game-changing user experiences. Teflon Sega is a musician who exists only in the virtual world as a digital persona. We expect to see celebrities and others creating their own NFT personalities in 2022 to perform anonymously in the virtual world.6 The rise of decentralized autonomous organizations supported by digital content creators and enthusiasts, non-fungible tokens have high investment potential. This year, investment DAOs (decentralized autonomous organizations) will be more popular as NFT assets and startups attract large capital. A DAO is a group that invests in the same entity. This allows DAOs to invest and accommodate more resources than individual investors and other firms.
DAOs also allow people with limited funds to invest in NFTs of high-end quality, allowing them to access exclusive artworks. DAOs can promote democratization and draw more attention to non-fungible tokens by encouraging democratization. This is why the rise of autonomous decentralized organizations will be one of the most important NFT trends in 2022.
Last words on NFT trends
NFTs, a new type of digital entertainment and art, are experiencing rapid growth. They have sales of billions of dollars. The popularity of non-fungible tokens is expected to continue growing in 2022 and beyond.
This year, we will see an explosion of NFT marketplaces that allow artists and enthusiasts to trade tokens and enjoy a transformative user experience. They also generate profit. New brands and content creators will join this trend as the NFT network matures and digital content becomes more valuable.
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