As a lot of people can tell by their wallet balances, 2021 was the year of the Non-Fungible Token.
As we’ve discovered in the DappRadar and ConsenSys reports, 2021 was a fruitful year for Non-Fungible Token, or NFTs. But as eyes are on the next year, what are three NFT trends in 2022 to be aware of?
Into the Metaverse
To some, NFTs look like pictures of cartoon apes and pixelated people that some put insane values on. Others see these “pictures”, as keys to the future of the internet.
This future is the idea of the ‘Metaverse’. It is the place where we will socialize, entertain and maybe even work in the future. It combines the technology around VR and AR to allow users to feel like they are a part of this digital universe.
Where do NFTs come into this? They provide decentralized security/keys to access this world. Holding your avatars/accessories/buildings/land in your Non-custodial wallet puts ownership in your hands. You own these assets, not the game/world you’re interacting with. You can import these items into this digital world, sell them, trade them or hold them. The decision is yours, as it should be with any asset you purchase.
Announcing @Meta — the Facebook company’s new name. Meta is helping to build the metaverse, a place where we’ll play and connect in 3D. Welcome to the next chapter of social connection. pic.twitter.com/ywSJPLsCoD
— Meta (@Meta) October 28, 2021
With the popularity of this concept growing by the day, and companies like Meta (formerly Facebook) going all in, the societal shift from Web2 to Web3 seems inevitable. How should you prepare going into next year?
Buy Metaverse Land, Avatars, and Accessories, as well as invest in Metaverse-related tokens!
Play-to-Earn and GameFi
Another area that we can expect serious growth in is Play-to-Earn gaming. As NFT collections begin to provide more utility to their offerings, video games are the obvious first move.
It also naturally makes sense. Imagine Fortnite, but instead of it being a one-way street, in terms of economics, everyone has the ability to see returns for their time and actions. Currently, it is a Pay-to-Consume system. Players pay to use skins and add ons that generate the devs millions, if not billions of dollars. What do consumers get? Access to those items, only while they are playing that specific game. Essentially, players are renting these skins, for a set price, for the lifetime of the player’s account or game they exist within.
— Gulfcoins (@gulfcoins) December 30, 2021
Where Play-to-Earn, GameFi, and NFTs differ, is that players are the ones owning these items, and renting them to the in-game world. You can port these items into games that accept them. You can sell a deflationary-in-game currency on an open market, allowing for players to be rewarded for their time spent playing. Finally, players can sell their in-game assets on an open market. These markets allow players to extract some value from investments they’ve made when they decide to stop playing the game. They also allow players to be further rewarded for finding rare items and upgrading their items.
Royalties for the creator create a win-win situation for everyone. What are collections/games you should be looking at in 2022? Consider buying NFTs from these collections, or invest in the token if available:
Retail Giants and NFT Fashion
Finally, another trend to watch in 2022 is the idea of retail giants and the metaverse with NFT fashion and collectibles. We saw companies like Nike, Adidas, Pepsi, and even as recently as this week, Champion enter the space this year. Minters typically receive some digital item (whether that be wearable or collectible), and some sort of IRL add-on.
The biggest example of this is the Adidas x BAYC x PUNKSComic collab. Holders of this collection receive metaverse wearables and will be able to redeem for actual Adidas Clothing. The floor price of this collection currently sits at 0.69ETH. This converts to a nice $2584 USD. That’s one expensive tracksuit! Yesterday, the collection saw 186 sales on OpenSea. With a 10% royalty on each sale, Adidas is seeing $250 a sale on a tracksuit they haven’t even had to produce in real life yet.
In the metaverse, challenging the impossible is the reality. On Friday we landed in the world of Web3 with one of the most widely-distributed NFT drops in history.
— adidas Originals (@adidasoriginals) December 20, 2021
Do you think other companies aren’t watching and attempting to do the same? Trust me, they are.
And why can’t the opposite be an option as well? The Adidas sale sold out in minutes. What’s going to be the demand on a limited release of IRL hoodies that come with an NFT copy? I imagine those will sell out in minutes as well. That also seems more Web2 friendly, with Web3 elements. This is one of our NFT trends in 2022 that I really anticipate taking the world by storm. There’s just too much frothy opportunity for profit for these massive companies. It’s just too good to pass up.
Those are the NFT Trends in 2022 to be aware of. Let me know what I missed in the comments below!
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