NFTs or non-fungible tokens have had a formidable influence on the approaches we follow for creating and purchasing art. Are NFTs only limited to art? No, the examples of music albums being sold as NFTs are a clear indication of the fact that they are more than digital art. If you are looking for NFT trends in 2022, you are most likely an NFT enthusiast, investor, or beginner seeking insights into the industry. Non-fungible tokens have changed the lives of many people worldwide, just like social media networks.
Many notable players are gradually turning more investments towards NFTs, favorably based on the assumption that they would be significant for the metaverse. The following discussion helps you figure out the top NFT trends for this year with a detailed overview of each trend. You can use the information to learn about the existing state of the NFT market and its potential direction in the future.
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What Is The Existing State of NFT Market?
The best NFT trends in the market right now might show you what to expect from the market. However, you need to understand how the current NFT market performs so that you have a better impression of how it will be in the future. The foremost highlight in the overview of non-fungible tokens would point at the famous multi-million dollar NFT sales. NFT artworks sold for unreal estimates at $70 million and $91.8 million, thereby reinforcing the assumptions regarding a favorable future for NFTs. However, non-fungible tokens have not been limited to the world of artworks only.
As a matter of fact, the total value of NFT transactions worldwide amounted to almost $17.6 billion in 2021. The number is definitely one of the most important pieces of NFT news, especially considering the value of the NFT market in the previous year. The value of transactions in the NFT market in 2020 amounted to almost $82.5 million, thereby verifying the 21,000% growth in 2021. As of now, some estimates have pointed out that the NFT market might reach a total value of almost $21.33 billion in 2022.
Popular NFT Trends in 2022
The outline of the promising growth in the NFT market creates curiosity regarding most popular NFT trends and their impact on the market. Many NFT users claim that 2022 will be the year of NFTs and introduce many new advancements. Here is an outline of the top trends you can expect from the NFT market in 2022.
1. Metaverse and NFTs
The metaverse has become one of the most popular subjects in the domain of technology and works as a simulated digital world involving VR technology. Metaverse may shape up into a $1 trillion market with the prospects for introducing large-scale transformation in our everyday lives. The metaverse can offer immersive virtual experiences bridged with real-life experiences such as purchasing.
Interestingly, the blend between NFTs and metaverse would emerge as one of the biggest NFT trends in 2022, especially on the grounds of introduction of brand NFTs. Non-fungible tokens offer an innovative tool for creating unique digital content such as rare items and collectibles. Experts have pointed out that NFTs would find more utility in the metaverse.
One of the biggest examples of brand NFTs in NFT news refers to Nike. The international apparel and footwear business has recently ventured into the domain of NFTs and the metaverse. Nike has acquired a digital shoemaking company, RTFKT Studio, for facilitating virtual shoes.
Interestingly, RTFKT Studio sold around 600 pairs of virtual sneakers within seven minutes, successfully raising almost 3.1 million USD. Such examples show that many other industries may seek ways to combine NFTs and metaverse for reimagining their business operations.
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2. NFT Sales on Crypto Exchanges
The arrival of NFTs created a lot of curiosity regarding the platforms where you can buy them. NFT marketplaces such as OpenSea have served as reliable platforms for purchasing and selling NFTs. If you want to know answers to “What is the most popular NFT right now?” you must visit individual marketplaces to find the best alternatives.
The predictions for the NFT market suggest that it will grow by more than $130 billion in value by 2030. Therefore, crypto exchanges are seeking the best ways to capitalize on the opportunity by integrating NFT marketplaces. As a result, they could reach out to a wider base of NFT users in the crypto landscape.
Some of the popular crypto exchanges, such as Binance, Coinbase, and FTX, have launched NFT marketplaces to expand their business. However, crypto exchanges would have to face high levels of competition from existing NFT marketplaces dedicated completely to NFTs, such as OpenSea.
3. Moving Out of Ethereum
The most important highlight in top NFT trends this year would focus on hosting NFTs outside Ethereum blockchain. As a matter of fact, the Ethereum blockchain hosts almost 95% of the NFT marketplaces available today. On the other hand, more NFT projects are gradually moving beyond the scope of Ethereum chain.
For example, the Solana network has rapidly scaled the heights of popularity as one of the most notable chains for DeFi and NFT projects. Why would NFT projects look for alternatives to the Ethereum blockchain? One of the foremost answers might refer to the various setbacks with Ethereum blockchains, such as higher gas fees and network congestion issues.
Even if ETH 2.0 presents credible solutions to these issues, the most popular NFT trends favor the introduction of Ethereum alternatives. The Solana blockchain network can resolve the issues of congestion and difficulties in computation by employing new and efficient consensus algorithms such as Tower Consensus mechanism.
Many other blockchain networks have gradually started attracting the attention of NFT developers as favorable alternatives to Ethereum blockchain for hosting NFTs. Some of the notable examples of alternatives to Ethereum include Polygon, Tezos, Cardano, Algorand, and Binance Smart Chain.
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4. Music NFTs
The answer to “What is the most popular NFT right now?” would bring many plausible entries to your mind. From the looks of it, you might assume that digital artwork NFTs or PFP collections such as Bored Ape Yacht Club or BAYC NFTs are the most popular NFTs. On the other hand, you must also consider how music NFTs have evolved as a popular choice in recent times.
Non-fungible tokens can play a crucial role in determining the value and marketability of the work of artists. NFTs offered the freedom to creative content creators and artists from chronic issues in the music industry. The assurance of secure digital ownership with NFTs helps music artists in dealing with critical issues such as unfair remunerations. However, music NFTs have changed the scenario by considerable margins alongside introducing the flexibility for controlling the royalty payments.
The examples of best NFT trends showcasing the dominance of music NFTs would introduce radical transformation in the relationship between music artists and their fans. For example, Jacques Greene auctioned the broadcast rights for his single “Promise” in the form of an NFT. Digital music artist Grimes also sold images and short videos of her music for almost $6 million.
5. Play-to-Earn Gaming NFTs
The discussion on NFT trends in 2022 would also focus on how non-fungible tokens are all set to revive the gaming industry. Play-to-earn games completely revolutionized the perception of NFTs as they facilitated creation of NFTs through games. Play-to-earn or P2E games offer NFT assets as rewards to players for their participation in different tasks of the game. The most popular example of a play-to-earn game is Axie Infinity, where people have successfully created NFTs and traded them for real money.
If Axie Infinity was the beginning, the latest NFT news draws attention toward new emerging projects in this domain. You must have heard of Decentraland and the Sandbox in many discussions around the metaverse and how they revolutionize the use of NFTs. Players can buy or rent virtual parcels of land available as NFTs on these platforms for creating virtual experiences or assets. Subsequently, players can trade the experiences or assets for real money. However, you can also expect other games to make a formidable impact on uses of NFTs in P2E gaming, such as Silks, Gods Unchained and Chosen Ones.
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6. Fractional NFTs
The sole objective of an NFT focuses on ensuring that the user has complete ownership of the concerned digital asset. However, the element of single ownership can make NFT assets difficult to purchase within available resources. The concept of fractionalized NFTs would gain momentum in the top NFT trends for the upcoming year.
One of the best examples of fractional NFTs in 2022 would point at the Gorilla in a Pink Mask mural by renowned artist Banksy. A company named Exposed Wall removed the artwork from its original position on the wall in Bristol in 2020 and now plans to auction it off as fractional NFTs. The company plans on auctioning off the graffiti wall as a collection of 10,000 fractional NFTs.
The objective behind fractional NFTs focuses profoundly on enabling affordability of NFTs. Investors could purchase fractional NFTs as smaller shares in multi-million dollar artworks. The popularity of fractionalized assets could serve vital improvements in the adoption of NFTs and growth in popularity of NFT artworks.
7. NFT Dominance on Social Media
Another notable trend pertaining to NFTs draws attention to “What is the most popular NFT right now?” once again. NFTs have become a mainstream element in social media networks, especially on Twitter. You must have noticed the quirky variations of apes or giraffes on the profile pictures of Twitter and Instagram users.
What makes them unique? The Profile Picture NFTs are a revolutionary intervention in social groups, which can enable you to show your commitment to NFTs. Twitter introduced the facility for using NFTs as profile pictures in January 2022 with a comprehensive verification method.
Many crypto enthusiasts and veterans have used their NFTs as their profile pictures. As of the time of writing this article, Twitter allowed only iOS users with Twitter Blue subscriptions to use NFTs as their profile image. On the other hand, Twitter has also stated that it would also introduce similar support for Android and web users in the future.
If you have been keeping up with latest NFT trends, then you must have come across NFT news of celebrities adding NFTs to their profile picture. Many celebrities such as Neymar, Paris Hilton, Gwyneth Paltrow, and others have purchased Bored Ape Yacht Club or BAYC NFTs and display them as profile pictures on Twitter. The use of NFTs in the social space will grow further in 2022, thereby resulting in better opportunities for showcasing your affiliation to the NFT space.
8. NFT Collateralization
The next entry among the expected NFT trends in 2022 would refer to the rise in NFT collateralization. NFTs are also crypto assets and can find applications as collateral on various DeFi lending protocols. As a result, NFT owners can use their valuable assets as collateral for taking loans on specific crypto exchanges and marketplaces. Some of the notable examples of platforms accepting NFTs as collateral include OpenSea, ETNA, Arcade, Nexo, Drops, and many others.
Generally, DeFi lending protocols demand that users must stake their crypto assets in a safe liquidity pool that is equal to or more than the amount borrowed. The staked assets serve as collateral for repaying the loans. However, the criticism for such approaches to collateralization of DeFi loans, such as concerns of over-collateralization, has opened up the doors for NFT collateralization.
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Bottom Line
The functionalities of NFTs, alongside their unique traits, have brought a new perspective on using digital assets and blockchain technology. As of now, the future for NFTs seems bright with the opportunities for increased adoption and mainstream use. NFTs will come closer to the general public in the form of music NFTs and play-to-earn games.
In addition, the most popular NFT trends also reflect technological advancements, such as introduction of fractional NFTs. Experts have also pointed to the possibilities for expanding use cases of NFTs across different domains, especially in metaverse and DeFi. Learn more about the applications and the potential of NFTs for the future now.
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