Booming Trends Driving NFT Technology in 2023 and Beyond
The NFT Market will be worth $ 80 bn, and that too by 2025. (*Infostor)
The NFT market has the world captivated. From digital art to NFT fashion to Super Bowl tickets, NFT has suddenly become the talk of the town leading to many enterprises seeking the services of NFT Development Company to provide goal-specific solutions.
Once a niche interest for crypto and gaming enthusiasts, NFT Technology has experienced a significant surge in attention across various industries and segments of society. As the landscape evolves, explore the transformative potential with a leading NFT game development company.
- Did you know that the most expensive NFT was “The Merge”, a work of PAK’s NFT Artwork?
- It sold for a staggering $91.8 mn, bought by 28,983 collectors. (*infostor)
The Concept of Non-Fungible Tokens or NFTs
Currency or goods in the physical world are interchangeable and hence fungible.
For example, you can change a 100 currency note can be exchanged for two 50 currency notes. Whereas, when we term an item as Non-fungible, it implies that it is one of a kind. It has no identical equivalent that you can swap it with.
For example, let’s consider an art piece.
An original will always be worth more than a copy however perfect the copy may be. It’s the same with digital art in blockchain technology. Once work is recorded on the blockchain, it’s exclusive.
NFT Trends to Track in 2023
NFTs are turning out to be a defining pillar of the new iteration of the internet. We take a look at some of the trends that will drive the growth in the years to come.
The Metaverse
- By 2029, the value of the Metaverse market will be worth USD 1527.55 Billion (Globenews wire)
The rise of the metaverse is one of the most compelling factors driving NFT Technology. The metaverse opens digital spaces to facilitate deeply immersive interactions between people aided by technology. It will redefine how we live, travel, network, socialise, and shop.
NFT is a crucial component of the metaverse as it will allow commercial and business transactions. All trades and purchases in the metaverse will happen through NFTs. There are already big markets for digital art and fashion NFTs.
The NFT Currency for the metaverse will continue to gain momentum as the popularity and use cases of the metaverse rise.
- The Blockchain
- Organisations’ total spending on Blockchain technology will amount to almost $19 billion by 2024.
- Over 300 million people are currently using blockchain for cryptocurrency.
We can assess the Blockchain sector’s value and growth from the statistics. And as far as NFT technology is concerned, it is one of the catalysts driving its growth. With the emergence of newer blockchains, more people gravitate towards NFT investments.
Going forward, new blockchain ecosystems are likely to push the requirements for NFTs further.
The Internet of Things
- As per Mordor Intelligence, the IoT sector will see a CAGR of 10.53% between 2023-2027.
All objects and devices on an IoT network use and exchange data via embedded sensors. IoT offers a more technologically driven environment by combining software and hardware and connecting it to the internet.
Since much of the communication with the IoT ecosystem takes place between machines, NFTs have a scope to authenticate this data and make digitally connected devices more secure.
Many of these technologies will be interdependent- for example, Blockchain and NFT will find various applications within the IoT environment and more so with cybersecurity firms.
For example, WISeKey uses NFTs to certify reliable devices.
NFT Real Estate
Buying and selling virtual real estate in the metaverse has been a major trend in 2023, and the opinion is that the trend will grow.
Many virtual real estate companies like Upland, etc., facilitate property transactions. The proof of ownership is received as NFT tokens and made secure with blockchain technology.
NFT Avatars
Avatars can be easily understood as “a profile picture” that will represent a user in the virtual space. Avatars can be human, animal cartoons and even abstract. Each NFT avatar is unique and has a unique set of features and characteristics; this is at a visual and at the coding level when they are created. NFT Avatars have a wide range of uses.
Prominent examples include Bored Ape, CryptoPunks, Habbo Avatars etc. NFT avatars have many users across the art and gaming sectors, and this NFT technology is widening its base and evolving as one of the major trends in the coming years.
Mixed Reality
The last few years have seen the proliferation of Mixed Reality into many business and entertainment sectors. From training to education to healthcare to shopping, gaming and entertainment, many industries are quite besotted with technology.
AR and VR are major components of MR and are finding many real-world applications. Their popularity is rising with the growth of the metaverse as well.
We see plenty of fun being had with NFTs, and MR provides a reasonable route to creating more value in the entertainment side of NFTs. Because of all these factors, there will be enhanced linkages between NFTs and MR.
Organizations can partner with a Mixed Reality Company and an NFT Development Company to gain maximum technological support to meet their futuristic needs.
Concluding Thoughts
NFTs are an emerging force, and the rise of interdependent technologies will fuel the advancement of NFT technology. Take a look at these statistics compiled from the demand surge to give you an indication.
- There are more than 250,000 monthly trade transactions on OpenSea
- Blockchain networks see NFT trading between $10 to $20 million weekly.
- The collectibles market is growing exponentially.
NFT Technology will be a massive force, and keeping an eye out on the trends will help enterprises stay ahead in this market.
