The new year is speculated to come with a major transition for the NFT industry, shifting from hype to utility.

LAGOS (CoinChapter.com) — In 2021, non-fungible tokens (NFTs) were introduced to the decentralized finance (DeFi) industry, and it grew rapidly as multinational corporations, global conglomerates, and prominent individuals/celebrities joined the community.

However, the buildup dropped significantly this year due to the downtrend recorded across the cryptocurrency sector. In fact, after experiencing a massive upswing in 2021 with around 1.5 million in NFT art sales, Q3 and Q4 of 2022 saw the NFT market plummets to a new low.

Despite the challenges, NFTs are still a viable asset, particularly in collectibles, which comprise 60% of the market share and the digital art space. In addition, Google search trends indicated that people were more interested in NFT than Bitcoin and Ethereum.

Additionally, recent adoption from prominent individuals, including former US President Donald Trump, shows that NFT projects aren’t going anywhere.

Furthermore, the new year will come with a major transition for the industry, shifting from hype to utility.

Notably, this will enable investors and collectors to view NFTs as a tool to build a more transparent, equitable Web3 space. Consequently, for investors hoping to incorporate NFTs as part of their portfolio in the new year, these are several NFT trends to be aware of as we move into 2023.

1. Taking Loans With NFTs

Taking loans with NFTs is a new crediting method where investors leave their NFTs as collateral to receive funds. In 2022, numerous DeFi platforms started supporting the usage of NFTs as loan collateral was established.

Multiple platforms carry out this feature and are poised to increase next year. Additionally, the loan is given in ETH if there is any ERC-721 network token against collateral. When the loan is paid, the NFT is returned.

2. NFT In Gaming

The GameFi industry and NFTs will play a major role in 2023 as they have become inseparable due to their symbiotic advantages. Moreover, blockchain gaming is the future, and NFTs are vital for blockchain games.

Notably, mainstream gaming companies are already adopting blockchain and NFTs into their projects. As a result, you can expect gamers to become more familiar with the concepts of NFTs when they finally launch.

3. Artificial Intelligence

NFT can be created with artificial intelligence, but in 2022 a new, which will continue in 2023, the trend began to emerge. Integrating AI into NFT could provide a wholly unique and dynamic experience, with no way to replicate it with other technologies.

Alethea AI is the first decentralized protocol to create intelligent avatars that apply artificial intelligence to interact with society. A good example is iNFT “Alice,” with extensive self-learning capabilities.

A new flow of knowledge constantly comes when there is contact with people. The developer company has already received more than $16 million for scalability and is striving to make a metaverse where artificial intelligence will learn from each other.

4. More Big Brands Coming To NFTs

Many businesses across all industries are vying for a piece of the NFT action through the development of inventive tactics. Food brands (McDonald, Starbucks), Luxury labels (Louis Vuitton, Nike, Gucci), and others have released NFT collectibles.

These multinational organizations utilize NFTs to raise money, establish new revenue streams, increase social media engagement, and strengthen brand loyalty. Notably, using NFTs to develop brand value is a tactic of many brands that will continue into 2023.

5. Social Media Joining NFT

Since the rapid development of Meta in 2022, the number of social networks quickly grows. There are many rumors in the blockchain space about the likelihood of Twitter, YouTube, and TikTok integrating with the NFT world.

Twitter has started to support the use of NFTs as profile images. After establishing a temporary connection to your cryptocurrency wallet, an NFT can be set as your profile image. Your digital asset is configured to appear hexagonal, identifying you as the NFT’s owner.

6. NFT In Real Estate

The biggest problem with long-term investments in real estate is ownership rights and the issue of transferring them. NFTs solve such a problem, which helps investors confirm ownership of a particular property in minutes. Therefore, using tokens in real estate is a good trend for development in 2023.

Blockchain technology, paired with tokenization, increases the security and safety of information. In addition, it can protect buyers and sellers, significantly speeding up and simplifying the transfer of such assets. Very few companies use NFT in real estate yet, but it is a new trend that will soon enter the masses due to its flexibility and several other advantages.

7. NFTs In Healthcare

The COVID-19 pandemic caused the acceleration of the development of digital solutions, so blockchain and NFT have found their place even in the medical sector.

A blockchain-based medical services marketplace has been developed, allowing information about patients to improve the quality of services. There could be a similar thing with NFTs, thanks to which monetization of information through tokenization will begin.

Additionally, utilizing NFTs to help support the population’s well-being will be a very common phenomenon in the future. Health Hero, a meta-world character, is an excellent example of an active link between medicine and tokens.

8. NFTs For Music

The subsequent developing trend is NFT music. The sector is not too popular, yet musicians and fans can earn money in this ecosystem. Moreover, NFTs allow for preventing shortages, and musicians receive 100% ownership and control over their pieces.

Notably, As a result, their content will not be that easy to distribute without copyright. However, in addition to the ownership rights, authenticity is established, and a new community is formed around NFT and music, providing musicians with autonomy.

9. NFTs For Sports

The sporting industry is one of the main sectors to have adopted and benefitted the most from NFTs. Collectibles have garnered much attention in the sports industry in recent years. A Deloitte report predicted that sports NFTs generated more than $2 billion in transactions in 2022.

In 2023 the growth and revenue generated from NFTs in the sporting sector are poised to double. Sports NFTs offer new ways for enthusiastic fans to support and interact with their favorite teams.

Notably, as NFTs mature, there are more practical applications for sports NFTs, all set to transform the industry in exciting ways. For example, loyal fans can demonstrate their passion by holding sports NFTs, while sports clubs and their athletes can offer fans long-term value through NFT’s growing utilities.

10. Neighborhood Watch For NFT Community

At the beginning of 2022, OpenSea hackers stole $1.7 million worth of NFTs, leading more Web3 platforms to reimagine their security features. While it is still possible to report bad actors in the NFT space on Twitter or Opensea, these platforms are still vulnerable to phishing attempts and malicious bots.

Crowdsourced reporting will be a significant way NFT investors can remain vigilant. Living databases and tools that can report an account and make it publicly available will be essential to protecting digital assets and identities in Web3.

Although the NFT space is going through a significant period that has scared some people off, many individuals, from digital artists to major brands, still leverage NFT’s inherent transparency and accessibility.

As a result, in 2023, many people will see NFTs as a building block to create a stronger foundation for Web3 to grow.

The post Top 10 NFT Trends to Watch Out For in 2023 appeared first on CoinChapter.

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Filed under: Bitcoin - @ December 26, 2022 9:52 pm