- Demand boom from 2021 is likely to continue in 2022
- Metaverse will play a big role in increasing NFT utility
- Application in the mainstream may unlock new opportunities
Demand for NFTs or non-fungible tokens grew exponentially in 2021, and the trend is likely to continue this year too. Therefore, it is essential to analyze the best NFT trends for 2022 to capitalize on upcoming opportunities. Broadly speaking, NFT trends can be divided into two categories. First, the new avenues that the industry shall explore. Second, the existing trends are likely to continue.
The New Avenues
NFTs are expected to become more utility-oriented as the industry matures. Bitcoin turned out to be a sensation, but many other successful crypto projects like Ripple, Solana, and Cardano were not. They were more utility-oriented, and it helped expand the crypto space. Likewise, the growth of NFTs is likely to depend on the growth of digital ecosystems and utilities.
Celebrity adoption of NFT across the globe has already propelled the popularity quotient of NFTs. It now needs a sustainable growth model, where digital platforms create practical applications of non-fungible tokens. In short, NFTs need to move from sensational to necessity – a transition akin to conventional cryptocurrencies.
One of the best NFT trends in 2022 could be IPR or intellectual property rights. Combined with blockchain technology, NFTs provide content creators with better control over their artworks. IPR ensures that artists are paid every time their works are traded or used, eliminating infringement almost entirely. Likewise, mainstream commercial art forms can be tokenized to protect copyrights and patents.
Similarly, NFTs are expected to open new earning avenues in the Metaverse through options like virtual land ownership. NFTs will also be used to make virtual investments, organize virtual public and private events, and create digital avatars. The rise of the Metaverse is already creating immense marketing potential for brands. Therefore, NFTs are expected to have a tremendous demand for kinds of art on the Metaverse – music, dance, paintings, etc.
However, the mainstream application of NFTs in the tokenization of exclusive data can become the biggest game-changer. Documents like medical history, DNA reports, property documents, business deeds, etc., can all be tokenized in the form of NFTs. Tokenized documents will help maintain the authenticity and records of critical information. But more than anything else, it can unlock huge opportunities for mainstream NFT adoption, pushing new boundaries and venues.
The Existing Avenues
One of the key things to remember is that NFT demand is almost uniform globally, right from the US to India and elsewhere. For instance, pop star Justin Bieber bought the Bored Ape NFT for a whopping $1.3m in January 2022. On the other hand, Bollywood superstar Amitabh Bachchan auctioned a collection of exclusive NFTs for $756,000 in November last year.
Famous athletes from major sports – Football, Basketball, Boxing, MMA, et al. – have also adopted NFTs wholeheartedly. WBC Heavyweight Champion Tyson Fury, one of the leading personalities on the list, has partnered with Binance to launch NFTs. This list also includes other ultra-popular athletes like Cristiano Ronaldo, Michael Jordan, Khabib Nurmagomedov, and Usain Bolt. The trend is also moving in Cricket, with Rohit Sharma, AB de Villiers, and Sir Viv Richards joining the trend.
Likewise, digital artists have reportedly been able to monetize their artworks much better through NFTs. In March 2021, digital artist Mike Winkelmann sold an NFT called ‘Everydays: The First 5000 Days’ for a mind-boggling $69m. Similarly, NFTs were a big attraction in online gaming, with many digital artworks selling upwards of a million dollars. We now have secondary markets emerging, facilitating the trade of in-game digital assets in the form of NFTs.
All of these avenues will continue to be among the best NFT trends in 2022. Each of them continues to grow in terms of the buyers as well as prominent brands joining the NFT space. Moreover, the trends from mature markets like North America and Europe are expectedly moving towards emerging markets like Asia. Resultingly, artists, athletes, online gamers, and influencers from these regions can now explore the NFT potential and further fuel growth.