Did you know? Every day, over 200,000 people trade Non-Fungible Tokens (NFTs). Tokens are increasingly helping to launch new enterprises, and according to Research and Markets, the market for Bitcoin mining will expand from an estimated $20.44 billion in 2022 sales to $211.74 billion in 2030.
NFTs have become popular due to their usage beyond gaming and art, such as in user-generated content. As technology advances, more businesses are exploring opportunities to develop the NFT marketplace. Even in its early stages, NFT technology has already started to alter the way we interact with the world around us.
It is important to discuss the most promising trends in this space that can help shape the future of the NFT market. Here are five of them:
1. Hollywood and NFTs:
NFT trading across all industries reached $23 billion in 2021, demonstrating the quick embrace of technology in the entertainment and film sector. This has led to several filmmakers, streaming services, and independent movie brands seeking to utilize NFTs in innovative ways. People may soon have the opportunity to invest a portion of their money to help fund an NFT-developed movie featuring their favorite actor.
2. Fractional Art Ownership:
As significant investors and traders are buying and selling various forms of digital art on NFT markets, smaller scale investors have found it difficult to own a piece of the action. However, with fractional NFTs, multiple users can easily share ownership of any NFT painting at a lower cost. A good example of this is the "Gorilla in a Street Mask" painting by Banksy, which was fractionalized into 10,000 NFTs, with each NFT having a starting price of $750.
3. Built-In Utility:
Because NFTs are stored on the blockchain, they provide token owners with additional utility. This includes features like blockchain security, verifiable ownership, smart contracts, token transferability, and others, which raise the value of the artwork and the entire NFT ecosystem. NFTs can also be linked to physical objects, such as sculptures, events, rewards, and memberships.
4. Fashion Industry:
The hype around NFTs has encouraged the fashion industry to integrate cryptocurrencies and NFTs into their products and advertising. For instance, Gucci launched a $12 digital shoe, while Burberry and Mythical Games created an exclusive NFT line. The latter's 'Baby Birkin' NFT line was sold for a staggering $23,000 at auction.
5. Music Industry:
With the help of NFTs, Blockchain specialists predict that the music industry will undergo significant changes. Several well-known albums, album covers, lyrics, and songs are becoming NFTs, helping both well-known and lesser-known artists get paid adequately for their work. Kings of Leon was the first musical group to publish an album as an electronic collectible.
Overall, even though we still have much to learn about NFTs, these five trends can help you make better decisions if you plan to invest in digital assets. It is clear that technology may soon become an unavoidable part of society, with many governments, social media companies, and corporations beginning to adopt it.