What is the future of non-fungible tokens (NFT) in 2022–2023?
Digital collectibles have taken the creator economy by storm in recent times. The market capitalization of NFTs has surpassed a whopping $17.42 billion. With the hype increasing with every passing day, it is the right time to launch an NFT platform and capture this valuable opportunity.
What to expect from the future of Non-Fungible Tokens in 2022–23?
Increase in demand for NFT Domains
NFT domain names are digital assets purchased on blockchain networks. Buyers benefit from decentralization, privacy, and lack of supervision by centralized authorities. Besides that, it can be stored as an asset in a crypto wallet. There are several platforms like Ethereum Name Service and Quik for domain name trading. Further, they offer options like the creation of decentralized websites, integration with decentralized apps (DApps), support for DNS names, and minting of NFT Domains. Additionally, NFT domain names can be traded on marketplaces like OpenSea and Rarible.
The emergence of Move-to-Earn (M2E) games
The success of STEPN indicates that Move-to-Earn (M2E) is the next big thing in NFTs. The Web3 lifestyle app allows users to choose a sneaker according to their fitness level, perform physical activities outdoors, and earn rewards in Green Satoshi Tokens (GST). Moreover, users can upgrade their sneakers, boost their earnings, mint new sneakers, and swap GST for USD Coin (USDC).
Genopets is another Move-to-Earn (M2E) game that rewards users in crypto tokens based on their physical and virtual activity. Players can also buy virtual land, upgrade the Genopet NFT, play with their friends in the Battle Arena, and sell Genopets NFT in the marketplace. Further, Habitat owners receive $KI utility tokens.
Usage of NFTs as collateral for secured loans
NFTFi is a popular NFT platform for lending. Holders can list their digital collectibles as collateral and receive loan offers. Later, borrowers will receive liquidity in the form of Wrapped Ether (WETH) and Dai (DAI) in their wallets. On the other hand, the NFT is transferred to an escrow smart contract for the loan duration. Since there is no auto-liquidation, borrowers have to repay the loan to get back their NFT. NFTFi has disbursed 13,000 loans totalling $212 million to date. It also offers access to 150 NFT collections. Typically, lenders follow Loan to Own or Loan to Earn strategies.
Anyone can create Intelligent NFT Avatars (iNFTs). It involves fusing a compatible NFT with a Personality Pod NFT. For instance, Alethea AI is a decentralized protocol that creates ERC-721 NFTs representing the personality and intelligence of the iNFT developed by users. The anatomy contains 3 parts (Body — underlying NFT on-chain), (Soul — Personality Pod with different traits), and (Mind — capabilities of the iNFT).
Users get ALI credits (which can be converted to tokens). They can stake the personality pods and the amount of ALI credits locked will determine the intelligence level of the iNFT.
Images of digital characters in a “Profile Picture” format are known as NFT Avatars. Generally, algorithms will generate NFT avatars with different traits like accessories, hairstyles, and clothing. Moreover, buyers will benefit from utilities like access to a community, royalties, staking, and character upgrades.
For instance, Reddit launched an NFT avatar marketplace on the Polygon network recently. Users can buy blockchain-based profile pictures by using their debit and credit cards. All the NFT avatars are minted on-chain and can be stored in the Vault wallet. Users can earn community points and buy animated emojis and badges.
Artists also get royalties for every secondary sale of their NFTs on marketplaces like OpenSea, Rarible, and SuperRare. Further, buyers can customize their limited-edition avatars in the Avatar Builder.
Memes as NFTs
The iconic Doge meme was sold as an NFT for $4 million. Memes have always been a form of creative expression. Hence, memes have a great reach depending on their theme, location, and target audience. For example, MemeChat is an NFT platform that allows users to make memes and earn money.
It has come out with The Meme Club (TMC) for connecting meme creators directly with collectors. Additionally, members of TMC get benefits like access to NFT airdrops, community gatherings, and online events.
Memes are valued based on their originality, authenticity, and virality. Moreover, MemeChat also provides users income for their generated content. Further, it organizes competitions where creators can create memes on different topics. They will earn money and rewards from moderators.
NFT collectors have already spent more than $37 billion purchasing limited-edition collectibles in 2022. With investments pouring in and several Web3 projects on the verge of launch, it is perfect to come out with an NFT platform now and capture pole position in the market.