NFT Development Trends for 2024

While 2022 and 2023 saw an explosion of interest and adoption in the NFT space, NFT trends in 2024 promise to create innovative solutions for the future not only of NFT, but also of other industries, such as:

• education
• real estate
• medicine and others

The current phase of the market provides tremendous potential for NFT enthusiasts around the world to develop new solutions and technologies. It is in periods of "slack" time that the best minds of today work to create a revolutionary blockchain product.

In this article you will learn about the most promising directions in the NFT sector, from games and social networks to lunchpads and meta universes.

What is NFT?

NFT is a non-interchangeable token that most often integrates with images, videos, music and other media. The key difference between NFT and other tokens is that it cannot be faked.

This allows content creators to gain advantages such as:

• Authenticity of NFT's origin
• High royalty
• Security

NFT is developed on the ERC-721 standard, whereas conventional interchangeable tokens use ERC-20. One of NFT's earliest collections was released in 2017 under the name "CryptoPunks." And the largest sale, worth $23.7 million, took place last February.

Since then, the NFT segment has changed a lot. Non-interchangeable tokens have found applications in various spheres of our life and improved their potential in blockchain. Merehead team has prepared the best trends for you in 2024 to keep you up to date with future trends and narratives.

NFT in the GameFi sector

GameFi is a segment of decentralized finance that combines elements of blockchain and NFT along with online gaming concepts. It is distinguished from the traditional gaming industry by its open economy, sovereign user ownership and emphasis on player empowerment.

The most popular applications in GameFi are:

• Axie Infinity
• The Sandbox
• Decentraland

NFT occupies a crucial role in this segment. Tokens are used as rewards, in-game items, and investments. For example, in Axie Infinity, the game's mechanics are built around raising pets, which are NFT.

Over the past year, the decentralized application market and blockchain in general has been experiencing hard times. Nevertheless, enthusiasts around the world continue to create new games, contributing to the growth of the segment's capitalization.

During this time, developers have learned key lessons, such as the importance of playability and sustainable tokenomics. These changes, as well as evolving user interest in gaming, will allow this sector to shape new trends in development in 2024.

NFT Gambling

The gambling industry is a multi-billion dollar as well as highly competitive industry. To stay ahead of the curve, casinos must find new and innovative ways to attract and retain users. That's when NFTs come into play.

The world of online gambling is evolving as fast as blockchain. The idea of creating a platform and integrating NFT into it emerged in the first years after the technology emerged.

There are several ways to use NFT in this niche, such as:

• NFT as betting on events
• Casinos, where the prize is NFT
• Specialized games

The latter are of most interest for NFT trends in 2024. One of the most popular of these games is Zed Run, where users create and improve their own NFT horses and then compete in horse races, earning rewards for winning.

It is still difficult to say which gambling applications will set a new trend in the development of NFT in 2024. Nevertheless, the fact that such applications are emerging speaks to the need of users for a more decentralized, attractive and broader space for gambling.

X-To-Earn NFT

X-To-Earn is a concept of decentralized games in which users are rewarded for some action. The most popular types of X2E games include: "play to earn" (P2E), "learn to earn" (L2E), and "move to earn" (M2E).

This approach encourages users to understand the blockchain and increases the capitalization of cryptocurrencies. NFTs act as rewards or in-game items. 

Types of X-to-Earn NFTs:

• Utilitarian NFTs. Provide in-game benefits or access to certain features.
• Resource NFTs. In-game resources such as weapons, skins, or virtual currency. 
• Control NFTs. Grant voice or control rights in a virtual world or decentralized autonomous organization (DAO).
• Stacking NFTs. Allow players to add their tokens to steaking for additional rewards.

A key aspect of the success of such applications is thoughtful tokenomics. Developers must create a balanced and fair reward system, constantly attracting new users and investors. 

The X-To-Earn concept is still at the stage of gaining popularity. Projects such as StepN or Sweatcoin failed to stay on the market, so NFT trends in 2024 are more likely to focus on creating a more sustainable and promising X-To-Earn model.

AI NFTs

AI NFTs are non-interchangeable tokens that are created using artificial intelligence. Combining these two technologies opens up broad potential for artists, music artists and content creators in the blockchain space.

In addition to creating NFTs, this niche also offers the following opportunities:

• Authentication. By analyzing the blockchain data associated with NFT, artificial intelligence algorithms can detect fraudulent tokens and prevent them from being sold.
• Prediction and analysis. AI can be used to predict the value of NFTs based on factors such as historical sales data, market direction and social media sentiment.

Like any NFT trend in 2024, the integration of artificial intelligence into blockchain helps attract new users and improves the segment's overall capabilities.

The most popular examples of AI NFTs are such collections as Lost Poets, Metascapes and Obvious. The most expensive NFT was sold 2 hours after publication for $70 million, which shows the scale of this direction.

Layer 2 NFT Solutions

In 2022, 28.9 thousand NFT collections were deployed on the Ethereum network. This blockchain has become a convenient platform for selling, exchanging, and minting ERC-721 tokens. However, the popularity of NFTs overloads the network, making transactions more expensive and time-consuming. Some companies are implementing these features into the development of dex platforms.

Layer 2 solutions eliminate these problems by improving the scalability of the underlying blockchain. They are deployed on top of Layer 1 and process transactions offline. This approach provides security, decentralization, and integrity to the underlying blockchain at a lower cost of gas.

Types of Layer 2 solutions:

• Zero-disclosure rollups
• Optimistic Rollups
• Plasma
• Sidechains

Over the past 3 years, various Layer 2 solutions for NFTs have hit the market. Let's take a look at the most popular ones to determine which direction Layer 2 NFT trends will take in 2024.

Optimism. The network uses optimistic rollups to reduce transaction costs. Optimism is compatible with Ethereum and easy to deploy. NFT marketplace Quix, running on the Optimism network, has over 12k active users, an average daily volume of $3.1k, and half the cost of gas compared to OpenSea.

Arbitrum. Layer 2 solution using optimistic rollups. Arbitrum supports smart contracts and provides Ethereum security at a lower transaction cost. The most popular projects in the Arbitrum network are the NFT marketplace Stratos, the adventure game Arcane, and the NFT Random Walk NFT creation platform.

Immutable X. The most popular Layer 2 solution for NFT is based on zero-disclosure rollups. Immutable X network processes 9 thousand transactions per second and supports the creation, trading, and exchange of ERC-20 and ERC-721 tokens.

The trend of Tier 2 solutions has already started. According to Dune, 23 billion gas was spent in July 2023, which is a record at the time of writing. This indicates the popularity of L2 solutions and their development next year.

Fractional NFTs

Fractional NFTs are non-interchangeable tokens that have been divided into a certain number of smaller pieces. The reason for developing this approach is to increase the number of users involved and provide the ability to redistribute funds across multiple assets.

To understand why this technology will set a new trend for NFT development in 2024, we should look for similar examples of shared ownership in the real world, namely:

• Real Estate
• Family subscriptions in online services
• Company stock

The most famous case of an NFT split was the story of the Doge meme, which was sold for $4 million in June 2021. After that, PleasrDAO split it into 17 billion pieces and, in true Dogecoin spirit, allowed anyone to own a piece of the original NFT.

Soulbound tokens

Soulbound tokens, or SBTs, are publicly verifiable and non-transferable NFTs that represent the credentials, affiliations and liabilities of an individual or organization. Built on blockchain technology, they take NFT trends in 2024 to the next level.

Soulbound tokens were conceived by Ethereum founder Vitalik Buterin and aim to improve user interaction in the Web3 space.

SBT has several uses, such as:

• NFT art. With SBT, it will be possible to prove the origin of an NFT by linking it to the owner's unique wallet.
• DAO. With Soulbound, DAOs will be able to distinguish real users from fake ones, avoiding sybil and spam attacks during votes and activities.
• Certifications and documentation. Currently, anyone can fake, for example, a high school diploma and pretend to be a specialist. With SBTs, an employer will be able to verify that an NFT certificate belongs to a university or other institution.

SBTs still do not exist on a large scale. However, conceptually, they are tied to a single cryptocurrency wallet and are not transferable. They are essentially NFTs, but without the ability to transfer or sell.

PFP NFTs

PFP NFTs are a special type of non-transferable tokens that are associated with a person's online profile image or avatar. Such NFTs are commonly used on social networking platforms and virtual communities to express uniqueness.

The difference between PFP NFTs is that they focus on personal branding and self-expression in the digital space.

Owning these tokens allows people to take a variety of actions, such as:

• Show their support for a particular artist or project
• Express their individuality
• Participate in exclusive events related to the project

PFP NFTs have yet to fully integrate into our lives. However, Twitter Plus users already have the ability to use this technology to update their profile avatar.

Profile image tokens are definitely worth your attention. Along with Soulbound, NFT's PFP is the next trend in NFT's development in 2024, contributing to the idea of a digital identity.

NFT Membership Tickets

NFT membership tickets operate similarly to Web2-based event or brand memberships, but have additional benefits for organizers and fans alike.

There are several reasons why the use of NFT memberships has great popularity among projects, namely:

• Impossibility of counterfeiting. Traditional membership cards can easily be copied or stolen, allowing people who shouldn't have privileges to use them. In blockchain, this is impossible.
• New user experience. NFT-based memberships allow brands to provide many online and offline services, such as access to exclusive events, behind-the-scenes content, limited release of physical goods and even voting rights.

Like traditional affiliate programs, NFT memberships can take many forms. That's one reason why this niche is the future trend of NFT development in 2024.

For example, owning an NFT could open up access to an exclusive online community such as the Bored Ape Yacht Club or give users a voice in a DAO such as LinksDAO.

NFT Rentals

Leasing an NFT is made possible through the use of a smart contract, which acts like an escrow and usually requires a certain deposit. At the end of the lease term, the NFT must be returned to the original owner.

Leasing is a popular trend in NFT development in 2024 because it allows investors to receive the benefits of tokens without actually buying them.

Beyond that, there are several other reasons why renting NFT makes sense, such as:

• The high cost of NFTs. Many people can't afford to own NFTs. Leasing allows them to enjoy the privilege of owning an asset without a large investment.
• Need for flexibility. Someone only needs an NFT for a short period of time, and leasing allows that to happen.

NFT rental is implemented without and with the deposit. In the first case, the renter receives a wrapped NFT that fully matches and performs the same functions as the original asset.

The principle works differently depending on the escrow. For example, the IQ Protocol NFT rental pad calls the borrower IQVerse and the contract of ownership calls the Warper.

In the second case, the tenant pledges another NFT equivalent to the one he is renting. In this case, the smart contract acts as an intermediary, providing security for both parties.

NFT loans

Gone are the days when NFTs were only used as profile images, today - this technology opens up more opportunities for business scalability. The next trend for NFT in 2024 is lending.

NFT lending is possible through specialized platforms and smart contracts. The borrower provides NFT as collateral in order to get a cryptocurrency loan.

This approach has several advantages, namely:

• Obtaining liquidity. NFTs are a single asset that can either be sold or bought in full. By using NFT lending, investors have the opportunity to obtain funds in cryptocurrency and allocate it to different niches, such as trading, staking or pharming.
• Retention of ownership. Unlike the sale of NFT, in which ownership passes forever, once the loan is repaid, the collateral in the form of NFT is returned to the borrower.
• Participation in the NFT ecosystem. Borrowers can remain active participants in the NFT ecosystem and potentially benefit from any future appreciation in the value of their tokens.

The NFT loan market is still in its infancy, but there are already several DeFi platforms offering such opportunities, such as NFTfi, Arcade, Drops and Nexo.

The average lending rate on such platforms is 20%, so you can borrow an amount not exceeding 80% of the value of your NFT. Such an approach opens up new horizons and trends of NFT development in 2024 both for investors and such platforms.

NFT Launchpad

NFT Launchpad is a platform that allows you to create and launch new NFT projects. It is similar to an initial coin offering, but instead of selling tokens, such NFT Launchpads offer the opportunity to buy NFT.

Launchpads are beneficial to both investors and project founders. The former have the opportunity to make a profit from the sale of NFT in the future, and the founders gain the means to develop the company.

Some of the key features an NFT lunchpad should have include:

• Smart contract development
• Marketing and community management
• Investor management
• Creating and selling NFTs

Fundraising platforms are the new trend of NFT development in 2024, as they accelerate the growth of any project several times over. Learn how to develop NFT with our guide to build a solid foundation for developing your own NFT project.

NFT in Education

NFTs are mostly associated with art, collectibles, and games. However, their educational potential is becoming more and more apparent every year. It is likely that the trend of NFT development in 2024 will start with this sector.

NFTs can affect the field of education in several ways, such as:

• Verification of educational documents. NFTs can be used to securely and accurately display education documents, such as course certificates or diplomas.
• Learning Incentives. Educational institutions can use NFTs to indicate the achievement status of a course or skill.
• Creating new markets for educational content. Educational institutions can use NFTs as a pass or key to exclusive educational content.

The Massachusetts Institute of Technology was one of the first institutions of higher education to issue virtual degrees using NFT. In addition, Duke University has also been issuing master of science certificates in financial technology.

NFT on social media

NFTs are starting to appear on social media platforms, where they are being introduced in a variety of ways to create new monetization principles and improve the user experience.

NFT has been known to play a role in social media platforms such as Twitter, Instagram and Facebook. For example, former Twitter CEO Jack Dorsey sold  his first tweet as NFT in March 2021 for $2.9 million.

First of all, NFTs are relevant for web3 social networks such as Mirror, Mastodon or Braintrust. They can be used as a digital identifier, profile avatar, rewards, etc.

Social networking is a niche that will launch a new trend of NFT development in 2024. Users are tired of constant blocking, selling their own data and perpetual advertising. The development of web3 networks, and with them NFT, is only a matter of time.

NFT real estate

NFTs act as a token that confirms ownership of part or all of an asset. They can be used for both traditional and digital real estate.

There are two types of tokenization:

• Full ownership. NFT is in the form of a certificate that you are the sole owner of the property.
• Shared ownership. The entire asset is broken down into many parts, where the purchase of an NFT makes you the owner of a specific share of the property.

NFT interactions with the real estate sector are still not fully developed. Today, it's hard to find a company that can sell NFT as proof of ownership interest. However, NFT is unleashing its full potential in the meta-village.

Buying NFTs in metavillages allows you to own land, buildings and other properties. The most popular NFT real estate projects are Decentraland, Sandbox, and Horizon. Decentraland sold 116 parcels of land in 2021 for a record €2.49 million in cryptocurrency.

The NFT development trend in 2024 will be aimed at improving meta-villages. Users will have the opportunity to create entire cities and communications in a fully decentralized online space.

Conclusion

The next year holds tremendous potential for further growth and evolution of NFT. As the market matures and evolves, enthusiasts can expect several key industry-defining trends to emerge.

Stay tuned for changes coming next year. Subscribe to our blog, become part of the crypto community and attend lectures and seminars to keep up with the latest trends.

Especially for you, we have prepared a list of the best crypto events in 2024, among which you will definitely find a suitable NFT event. Check it out now and start planning your best year in crypto!