Last year, Clubhouse rooms were booming, artists were learning about NFTs, and nobody knew what would happen next.
The space has grown exponentially in the last year, much above anyone’s expectations. For example, from 1/1 auctions on Foundation to the PFP collecting frenzy to more sophisticated NFTs that benefit collectors, NFTs have evolved tremendously.
NFTs and the IT industry
NFTs have taken over the IT industry, so much so that The Collins Dictionary named it the term of the year. The stigma and distrust of many have attracted mainstream brands and corporations, who are investing in learning more about how the space operates and how they may participate.
Corporate experimentation has progressively grown to conviction, proving that NFTs are not merely a bubble. Celebrities including Jimmy Fallon, DJ Khaled, Steph Curry, Post Malone, and Paris Hilton to name a few, have invested in NFT initiatives.
Some controversy, drama, and fear-mongering still exist, but significant indicators of possibility, optimism, work to build the space every day. But what about next year — What’s in the cards for digital investing?
Utilities of NFTs
NFT collections sold out in the last year merely because they had 10,000 profile pictures. But as the months passed and we learned more, many found burrowing into every collection endeavor untenable. Hype can only take a collection so far, and right now, it’s useful. For a project to last, it has to be defined, distinctive, and value the collector beyond the art or name.
More brands will enter NFT.
With revenues hitting $9 billion in 2021, the possibilities are unlimited. Nike purchased trailblazers RTFKT studios, while Adidas teamed with NFT startups, including, Punks comic, BAYC, and Coinbase. Brands will continue to grow their presence in the NFT space and metaverse as 2022 progresses, and we may anticipate more eyes on the scene.
DAOs will increase.
DAOs are public, transparent, and decentralized, and instead of stock, they use tokens. They are more reliable and allow for real-time wealth distribution. A DAO allows collectors to actively participate in the project’s direction.
DAOs will continue to flourish in 2022, from votes to money and community expansion. Wyoming has identified promise despite regulatory and legal ambiguity by enacting a bill officially recognizing DAOs. Their decentralized nature is gaining traction, and we may expect additional changes next year.
The ENS domain airdrop and the more recent $SOS token airdrop rewarded early users and supporters with tokens. Similarly, the BAYC plans to release a token that rewards holders, while gm intends to release a $gm token, which rewards Twitter engagement with the gm culture. These tokens stress the need to interact in the area. More token airdrops are expected in 2022, and from what we’ve seen, you should participate in any manner feasible.
Blockchain technology has enabled new ways for players to get rewarded for their time. With Crypto Kitties laying the groundwork in 2017, several NFT projects have included play-to-earn games to their roadmaps in late 2021.
The BAYC, which has partnered with Animoca Brands and will premiere in 2022. Also, The Forgotten Rune Wizards revealed intentions for a play-to-earn game, and their floor price more than quadrupled in less than 24 hours.
Known NFT figure
Loopify’s own NFT game, Treeverse, exemplifies the promise of blockchain gaming. NFT projects will continue to seek gamification in 2022. We’ll see.
The most significant event was a week-long NYC takeover that coincided with 2021 Ape Fest in the BAYC. Thousands of NFT fans descended on the city to give a face to their online character, something many had not done since joining the space.
It was an opportunity to merge digital and reality, and it was trendy. The BAYC also sponsored a warehouse party with The Strokes, Lil Baby, Beck, Chris Rock, Aziz Ansari, and Questlove. On top of that, they invited apes to a real-life boat party with live music and dancing.
Following the events’ popularity, other NFT collections have started integrating IRL events into their roadmaps, so anticipate more in 2022.
NFTs will innovate
Since the start of the year, billions have entered the NFT space. Intriguingly, PFPs, 1/1s, and generative art all led the way in 2021. Due to the sheer number of similarities in the market, more original art and concepts are necessary.
Recently, a collection called JPGpeople was introduced, allowing collectors to contribute to the creation of art by putting in a word. It encouraged thinking, creativity, and most importantly, it was novel. In 2022, expect to see more innovative NFTs that don’t only demand you to click mint.
Things will change.
It’s apparent, but it’s also hidden. A lot has happened in the last year, from trends in the NFT marketplace to the price of Ethereum — to the entrance of businesses into NFTs. No one could have foreseen where NFTs would be last year and doubtful we can see the depth of them in the next year.
Given what has happened and what is predicted in the future, we can confidently state that NFTs will have an interesting year in 2022. And the boom and bust gold rush fever will make some investors wealthy.
Of course — others will lose their shirts. So don’t count your Banksies before they hatch.
Image Credit: Cottonbro; Pexels; Thank you!