The Predictions and Trends for NFT Marketplaces in 2023
Are you looking to do the NFT Marketplace Trends 2023?
Merehead is a leading software development company. Talk to our experts to get a turn-key solution!
Write to an Expert
2021 was the best year for cryptocurrency since the coins showed active growth and numerous projects developed during that year. The cryptocurrency's popularity increased, there are new projects on the market daily, and the NFT is a vivid example of a trend.
NFT industry evolution and digital assets features
Let’s explain what the NFT industry is. Today, people don't have ownership rights if they create content on YouTube, social networks, or other applications. The corporations and platform owners state in the user agreement that the users can employ their resources temporarily and post content. In fact, the original author doesn’t own the content. This is the prime issue since the platform founders use the content for commercial purposes and can block a creator if they violate the platform regulations. NFT is a solution since non-fungible tokens allow gaining ownership rights over content.
The NFT sector started in 2017, yet its interest was minimal. Currently, the metaverse advances increase the engagement in NFTs. Investors and typical users consider the technology a platform for selling images for thousands and millions of dollars. NFT is not about pictures; in late 2021, developers started to employ it as a technology. From 2022-2023, many advances are expected since GameFi and metaverses use NFT as a fundamental technology.
It is a perfect time for long-term investment in crypto, namely, metaverses, GameFi, and NFTs. These will be trends in 2023 and mainstream technologies up until 2026-2030.
Recently, Facebook presented its new concept aimed at creating a metaverse. After the rebranding, the corporation attracted the crypto community and other major companies like Epic Games. The NFT sector will be at the center of attention, and it is essential to figure out the prime trends of the market.
Are you wondering why NFT images and other products are so expensive? NFT is a key to Internet evolution that allows creating and, what is more essential, owning content. Modern people are used to the difficulty of differentiating a copy and an original. Yet, the NFT changes the approach by proving the original through verification.
An NFT is not a picture but a decentralized certificate linking the digital object and blockchain address.
According to Jefferies international investment bank, by 2025, the NFT market will reach 80 billion dollars of capitalization. Furthermore, the growth trend will continue. Despite severe price corrections in the cryptocurrency market, the NFT tokens continue developing.
Top NFT trends for 2023
Each one has their opinion on NFTs. Some people consider it a typical theme that will shortly disappear; others believe it is a significant element of the cryptocurrency world. Only one thing is sure, digital assets and items influence the financial market, economy, etc.
In 2021 achieved global popularity since the Beeple artist sold the token ‘’Everydays: The First 5000 Days.’’ Here things like crypto art, NFT avatars, and digital land started.
NFTs provided opportunities for the new world and blockchain through recent advances in smart contracts, Ethereum, and others. The trend continues in 2022 and remains on the TOP. Everyone can observe new applications developed with this technology. However, hyper-popular trends in NFT are definitely worth your attention in 2023.
Fractional NFTs and art value
Beeple is not the only significant art trader in the NFT industry. For instance, Nyan Cat animated picture was sold for 300 ETH in 2021. In the American dollar equivalent, it was 590 thousand dollars. A digital map was bought for 205 ETH in a month, equaling 320 thousand dollars.
The trend continues in 2022, and we expect it in 2023 too. There will be new NFT trades and new offers and pieces from artists.
Fractional NFTs allow the creation of new investment opportunities by purchasing valuable assets with lesser investment. For instance, Exposed Walls company intends to sell the Gorilla in a Pink Mask mural as a collection of 10 thousand fractional NFTs for $750 a piece.
Particle company employs the same method and plans to launch a collection with the world’s best masterpieces. Each piece will be split into 10 thousand NFT parts. Fractionating assets may seem weird, yet the idea develops and grows. Masterworks platform allows buying and selling the NFTs of various artists.
Although the trend has disadvantages, the investors study the method since it’s working for earning funds. Tokens are an evolution in the world of collecting paintings and other art.
The art benefits from this model since the artist finds it easier to monetize their work, and more people can invest in it. The painters can also receive rewards for secondary sales.
Improving video games with NFTs
According to the scale and development, the video game industry is rated the 2nd. GameFi sector can combine finance and games. The term for it is NFT gaming. The idea is that the gamers during entertainment receive NFT assets as game rewards. This idea helped the blockchain games develop.
The audience is genuinely interested in the play-to-earn model. It allows them to play and earn tokens to exchange for real money.
Here are some games that employ this method:
Axie Infinity (AXS)
My Neighbor Alice (ALICE)
Gamers can collect, exchange, and sell tokens since they own the assets. They can also use cryptocurrency markets to convert NFTs into other investments and sell them.
Axie Infinity is one of the most popular games; its native token is AXS. At its peak, the assets' volume was 1 billion dollars. The idea is to create and collect pets that have their features. AXS and SLP tokens are the game’s currencies.
GameFi industry has other projects, but for play2earn. Namely, text games that employ NFTs, like Loot. Play-to-move is the most recent developing trend, and StepN is one of the most successful projects. The developers have a lot of blockchain projects for games worth paying attention to in 2022-2023.
NFT in the film and TV industry
During Covid-19, the film industry transformed. After the pandemic, the monetization and release of movies started employing new methods; the studios now release the film on streaming platforms and cinema simultaneously. TV shows also experienced change since they adjusted to a non-linear model that entirely changed the content demonstration.
Some cryptocurrency experts claim that NFT is the new epoch in development that will transform the content industry.
NFT provide a new monetization and promotion method for services and products in the TV and film industries.
Numerous major organizations actively release NFT shows on TV, including:
GenZeroes — a game NFT series by House of Kibaa. The viewers must buy NFT tokens to get access to the episodes. According to the purchased NFT level, different elements become available: comics, collectibles, and a share in the show.
Stoner Cats — a series for adults about cats. The project raised 8.4 million dollars by selling tokens that gave access to the show. NFT was a lifelong ticket for the show. According to the creators, the users bought the tokens within 30 minutes. Mila Kunis was the show producer; many Hollywood actors starred in the series, and even Vitalik Buterin, Ethereum founder, participated.
Dominion X — a doll animation show by Steve Aoki. Project’s NFTs are episode fragments instead of tickets. Distributors like Netflix or Fox can buy the right to show Dominion X, yet there are no details on the pilot project.
The examples above are just a minor part of all projects currently developing. There are shows based on NFT characters. Also, some projects use NFT as an additional funding method.
The music industry is the next trend in NFT. Making quality music is not enough for earning money, yet the crypto sector allows changing the financial model by giving a limitless field for art. Since 2022 the volume of singles and NFT albums has kept increasing.
For example, Daniel Allan sold NFT copies of his NFTs and made a few thousand from each. Daniel makes electro-pop and uses Glass streaming to demonstrate his creation. All videos on the platform are NFTs; therefore, the creators own them and monetize them if necessary without third parties.
Band Royalty NFT is another platform for music creators worth keeping an eye on in 2023. With its help, the authors receive a part of their income each time their song is played in a playlist. The platform has about 3000 NFTs and plans to upload 4-5 times more tokens within 2022-2023.
DJ 3LAU is another musician who sells NFTs. He earned 11.6 million dollars in 24 hours with one of his albums. Meek Mill is also famous in this industry. In 2021 he announced an NFT mixtape.
There were three token options:
The album cover.
Additional benefits for platform participants, for instance, lifelong tickets in the first row at concerts.
Audiovisual compositions — exclusive material.
It can truly become a music industry trend in 2023. Moreover, NFTs proved their quality and efficiency. In a few years, numerous famous artists will release NFT albums, especially if recording companies join the development.
Lending utilizing NFT
NFTs can be applied not only in digital art or games; it is a unique technology and development that has found application even in finance. Tokens have already gone far beyond play-to-earn or conventional images. According to many experts, the new product round, the technology's good direction logo is NFT-credit.
With the help of their NFT, collections become collateral, through which people receive credit in case of force majeure or new potential investment opportunities.
Since 2021, various DeFi sector platforms have been launched that facilitate lending through NFT. A popular service in this environment is Arcade. The borrower and the lender agree on terms before locking the collection. Collateral is provided through a target account using smart contracts from the platform. The NFTs themselves are closed until the loan obligations are fully repaid, or default occurs.
At the beginning of 2022, Arcade worked with over 50 NFT collections, including avatars from CryptoPunks and other collections. Additionally, $15 million in funding was secured from prominent funds and investors in the cryptocurrency industry. Among them are Pantera Capital and Franklin Templeton.
NFT-Fi is another service that provides loans with collateral in NFT. The platform allows you to place assets to secure loans, and investors can also become lenders by offering funds to others. Loans are issued in ETH, and any ERC-721 token serves as collateral. After repaying the debt, the collateral assets are returned to the borrower; otherwise, they go into full possession of the lender.
Product promotion with NFTs
Global brands are trying to keep up with trends and enter the NFT sector.
These are the leaders in the release of collectibles to increase demand for their services and products, and loyalty among users:
With the help of NFT, they not only increase the demand for their goods but also obtain new sources of income and raise funds for charity.
The well-known chips manufacturer Pringles created the digital collection CryptoCrisp, a feature of which is a "virtual flavor." The digital assets include only 50 tokens; the NFT is an MP4 file with an animated gold can. The initial value was about $2, or 0.0013 ETH. For this money, at the time of the auction, you could buy an ordinary can of chips. After a while, the price on OpenSea was 4ETH.
NFTs help create value for any brand, which has become a new marketing move for large companies. This trend continues and can be used in 2023, helping improve the visibility of a particular product or service. In the future, global brands and smaller companies will start releasing more and more NFTs, and the challenge for marketers will be to do creative branding within the metaverse.
Digital assets already abound, including digital clothes, lands, and various stories that can only be realized through meta-villages, creating your avatar. NFT can become a subject of verification of people's attributes on platforms, showing the actual owners of this or that item in the virtual world.
Digital fashion and meta-villages are trends that are very popular abroad than in the CIS countries.
The central perspective is the new Web 3.0 market, where we are all already participating. In other words, new leaders, contemporary society, relationships, and consumer models are now being formed. Resource allocation and the formation of a new consumer model have been created thanks to NFT.