The first NFTs surfaced in 2014 and have seen steady growth till 2020, but in 2021, there was a massive surge in NFT tokens with approximately 1.5 million NFT tokens up for grabs. However, in 2022 this all changed as the crypto market plummeted and NFT witnessed significant declines in volume when compared to previous years.
But with digital assets again gaining momentum in the first quarter of 2023, analysts like J.P. Gownder (VP, Principal Analyst) predict that NFT prices will continue to rise steadily as more and more companies make their translation towards the metaverse.
With that in mind, we compiled a list of trends we expect from NFTs in 2023. But do note that this is in no way a definitive list, instead our prediction, and should not be used as an investment guide.
TIP: Read also our review of PelXP.com NFT project.
Overview of the 3 NFT trends in 2023
The merge of AI and NFTs
Both AI and NFTs are two separate branches of technology that have taken over the world by storm and their intersection is an exciting area to watch out for in 2023. AI can be used to quickly create unique digital assets, which can then be minted as collectible NFTs. The use of AI can significantly increase the speed at which we can produce unique digital assets and can even be used to create immersive experiences backed by the blockchain’s security and immutability.
However, there is a fine line on how AI can be integrated with NFTs as using AI can also diminish the creative and unique aspect of a token and thus decrease the overall price. It will therefore be interesting to see how the use of AI impacts the world of NFT but we have high expectations from this one. You can learn more about the impact of AI in NFTs by clicking here.
Fractional NFTs (F-NFT)
As the prices of NFTs continue to go up, the barrier of owning a token is becoming increasingly difficult. Many successful NFT tokens are priced upwards of a few thousand dollars which may not be ideal for new investors. That is where the concept of fractional NFTs (F-NFT) comes into play. Fractional NFTs essentially let you own a fraction of an NFT so that multiple people can share the ownership as well as the benefits, and costs associated with the ownership.
We expect fractional NFTs to flourish in 2023 as investing in real estate, art, or other high-value assets becomes the norm. It will be interesting to see how the technology continues to evolve but F-NFT will surely enable many first-time buyers to invest in NFTs for a relatively cheaper price.
The gaming industry has quadrupled in the last few years as new revenue streams like play-to-earn (P2E) models were introduced. It is therefore expected that more NFTs will be used as in-game assets and depending on the popularity of the game the unique, scarce assets will continue to go up in price. We also anticipate seeing a new secondary market to be introduced where traders from around the world can exchange their gaming NFTs for real-life cash.
This list is just our own opinion and the reality may be very different from what we anticipate. There may be other aspects like NFT ticketing or NFT music that take the limelight. But one thing that we may all agree on, innovative technology like NFTs is here to stay and it is not slowing down anytime soon, so it can be a great year to start investing in this wonderful world of digital assets. Learn more on how to get started by clicking here.