NFTs in 2023: Fall or Rise?
Within the last few years, NFTs have been everywhere: from fashion, art, and gaming, to real estate and entertainment. Many businesses took advantage of the NFT to stay on top of trends, engage with customers, and beat their competitors. Nevertheless, OpenSea, one of the largest NFT marketplaces, has seen its trading volume fall by more than 90% since January, 2023.
Despite recent unfavourable NFT purchase patterns, many companies have a positive outlook for the coming year. According to the company’s 2023 report, brands will use NFTs to create charitable products or initiatives. So what does this mean? Does this mean that we will see an increase in NFT charity purchases? Or is it going to decline in the year 2023? But first, let us clear the definition and use of NFT!
What are NFTs?
Non-Fungible Tokens (NFTs) are digital investments that exist on a blockchain like Ethereum. These are unique, which means that each token is unique and can’t be imitated, and they have a set of features that can be followed on the blockchain. NFTs have become well-known in the blockchain world and have been used for a combination of applications, such as gaming, digital art, and even real estate. They are a powerful way to tokenize digital assets, allowing people to sell and buy them without any central authority. NFTs are revolutionising the way digital assets are owned and traded, and their potential is only beginning to be explored. But as discussed previously, we have encountered some downfalls in the NFTs, so let us look at some of the reasons behind that!
So based on this NFTs solve a very significant problem for artists, but outside of this space, outside of someone who is creating something unique and may want to secure it. What problem do NFTs really solve? Can something that has one specific purpose cement itself as a day-to-day thing in our lives?
Reasons for the NFT Market Crash
Many issues have led such digital assets to fall. Here are a few of the most usual issues related to the NFT market crash:
- The FTX Bankruptcy
- NFT Scams
- Indecisiveness Regarding Use Cases
- CryptoCurrencies: Price Fall
Topmost NFT Trends in 2023 to be Documented
In the year 2023, we can encounter various NFT trends. Let us have a look at those!
- Decentralised Finance (Defi)- Decentralised finance (DeFi) is an evolving financial technology based on distributed ledgers identical to those utilised by cryptocurrencies. Marketplaces with rewarding tools based on NFTs will grow in stature as people discover the fact that having NFTs for the sake of flaunting does no good.
- Gaming NFTs- These will elevate to new levels as Play-to-Earn, and Move-to-Earn tools will be adopted by the gaming community after having a precise vision of how sustainable blockchains have become a reality.
- Virtual Events- Virtual events on metaverses will see the overall usage of NFTs, as people will need digital avatars, tickets, assets, and memorabilia to access and encounter them. Concerts, parties, conferences, and other gatherings will be powered by non-fungible tokens on reality-based platforms.
- Ticketing- Ticketing for virtual and physical occurrences will see tremendous adoption as the world returns to pre-pandemic standards. While NFTs dictate declining physical constraints, some points indeed require liveliness to be caught on a full scale, and NFTs could support them.
- PFP NFTs- PFP is a type of NFT that has risen in popularity. These will take a new lease of life, as forming virtual communities with benefits precedes the trend of owning “flaunting and lucrative” images among such businesses. New collections in partnership with many real-world businesses could see loyalty memberships partnered with vibrant JPEG images.
- Music NFTs- Music NFTs could go big in 2023 as more musicians embrace them to get along with their fanatics. A few marketplaces have already begun trading partial ownership of music NFTs in collaboration with well-known music producers.
The prospect of NFTs has no boundaries, while modern security protocols concern new sectors demanding data protection. In 2023, one can consider multiple options for employment for NFT, blockchain, and smart arrangements. What is your take on such investment?