There have been seismic disruptions in the global arena two months into 2022. Hopefully, peace will come soon, but one thing is certain: the complete shift to digital is coming to fruition in a big way with digital marketplaces and virtual real estate, also known as the metaverse. Along with the increasing popularity of cryptocurrency and the rise of NFTs (Non-Fungible Tokes), the landscape of virtual markets, digital assets, and how we interact with others in 2022 will be vastly different from that of today.
NFTs are quickly becoming the most visible forerunners of this shift. While the global NFT market saw over $23 billion in trading volume in 2021, the figure was only $250 million in 2020. The expansion has been enormous. Even before WazirX’s NFT marketplace launched, 15,000 artists and creators applied to join the platform. Also, do checkout nft marketing in Malaysia here.
- State of the Art
- The meteoric rise of NFTs in the art world has inevitably sparked discussion about what makes art valuable, the nature of ownership, and, perhaps most importantly, what to expect in 2022 and beyond.
- When digital artist Beeple’s Everydays: The First 5000 Days was sold as an NFT for a record-breaking US$69 million, the appeal of digital art resurfaced. This is because, for the first time in history, NFTs allow the origin and ownership of digital data to be verified and tracked using blockchain technology.
- Purchasing and selling fractionalized NFTs of real-world artwork by well-known painters appears to be the trend for 2022, with fractionalized NFTs allowing investors to invest in high-value crypto assets at a fraction of the cost.
- Diving into the metaverse
- Gaming was the second most important area of development for NFTs in 2021. NFTs have ushered in a new era in gaming with blockchain-based play-to-earn games that reward players with in-game assets, as they represent the first time that gamers are actually the owners of their assets, which they can sell on NFT marketplaces for a profit.
- One of the most popular games in 2021 was Axie Infinity, which used both NFTs and cryptocurrencies. The trading volume on Axie’s NFT market surpassed $1 billion, and the daily active player count surpassed 1 million. Axie tokenized its characters as well, requiring players to buy at least three Axie NFTs before they can begin playing.
- Raising the fundraising bar
- There is always some room for charity wherever there are huge sums of money, big investors, and prized items up for grabs. As the world comes to terms with the benefits of tokenization, fundraising has emerged as an unavoidable byproduct of NFTs.
- Using smart contracts to design NFTs that automatically donate money to a good cause with each transaction expands charitable opportunities even further. Blockchain technology protects NFTs and smart contract algorithms by providing a transparent, publicly traceable database that ensures funds are delivered to designated charitable organisations. Furthermore, cryptocurrency-based charitable payments have lower transaction fees.
- Social communities
- Twitter announced in January 2022 that users could now swap their profile pictures as NFTs, and Meta jumped on board almost immediately. To address the issue of ‘right click and save,’ social media companies are developing a badge that distinguishes between uploaded pictures and NFTs verified inside the user’s cryptocurrency wallet.