The 2021 bullishness in the crypto market is largely remembered by the tremendous growth of the decentralized financial ecosystem (DeFi) and the simultaneous non-fungible token (NFT) boom. NFTs have skyrocketed in popularity to unprecedented levels. Mainstream investors flocked to get the next rare NFT avatars and digital artwork.
That said, we are left with fiery questions – how will NFTs work in the coming years? Should we expect this exponential growth to continue, or will interest in NFTs diminish? In this article, I’ll give you some examples of bullish perspectives and the strengths that NFTs can leverage.
It also provides an honest forecast for the 2022 NFT. This should give you a good idea of the future outlook for this niche.
Illustration of NFT boom: what it looks like
NFTs have come a long way, and there is no doubt about it. What started as a simple fad for digital collections quickly grew into a global phenomenon. And the rising prices of NFT artworks have certainly contributed to the popularity of this area. Last year, the entire community was created around NFTs. Projects such as the Bored Ape Yacht Club (BAYC) have attracted celebrities and influential people and have shown that NFTs can be a monopoly.
This topic of NFT was immediately reflected in the real world through events and auctions. Let’s take a look at some of the most notable ones in 2021.
NFT.NYC is considered the “Super Bowl” of the actual NFT event. The community event was held annually in New York and was the third in 2021. In particular, the 2021 event was attended by more speakers than the 2019 event. This incredible expansion has greatly expanded our reach to mainstream media.
In November 2021, NFT.NYC took over the stairs of the iconic Times Square, with more than 5,000 people attending the event. Hundreds of brands exist, demonstrating growing interest in NFTs for mainstream consumers. Celebrities such as film director Quentin Tarantino and rapper Busta Rhymes have also expressed their support and belief in the future of NFTs.
The event was completely successful, but the organizers believe that NFT.NYC will surpass the 2021 achievements in 2022. With hundreds of exclusive VIPs and open events, the NFT community will meet again in June this year with several prominent speakers.
Auction of popular artists and projects in NFT space
Last year, the news was filled with incredible NFT auction headlines, and the lots of the auctions were repeatedly one with each other. Billions of dollars have been spent on NFT art, avatars and various other use cases. Some of the most notable ones are:
- Beeple’s “Everydays” collection sold for a record 38,525 ETH. That’s $ 69,346,250. Christie’s showed the world that NFTs aren’t just a niche concern, and the auction has clearly pushed NFTs into the mainstream.
- Various CryptoPunks were sold for millions of dollars. CryptoPunk # 5822 and CryptoPunk # 7523 have reached prices of 8,000 ETH and 4,300 ETH, respectively, and have been established as part of the most coveted digital assets on the planet. This has led individuals interested in such assets to invest significantly in Ethereum.
- The boring Ape Yacht Club NFT sells for a floor price of 100 ETH, with celebrities such as Jimmy Fallon, Post Malone, and Justin Bieber jumping into hype.
As you can see, there seems to be no limit to the interest in digital art NFTs, and investors are exchanging billions of dollars for these collections.
Fidenza Art Blocks and Blockchain Artistic Usage
Tyler Hobbs writes the code and creates the NFT art. The digital artwork for his Fidenza series is generated by algorithms on the blockchain. In 2021 he released 999 sold out in just a few minutes.
But just two months later, his # 313 work was auctioned at OpenSea for 1,000 ETH, instantly pushing the artist to the forefront of the NFT landscape.
Benefits of NFT
NFTs have begun to empower individuals through the benefits of decentralization. They allowed artists to reach more people without the barriers of office work and the additional cost of intermediaries such as art galleries and curators.
At the same time, they provided collectors with easily transferable digital assets, which allowed them to save value and make incredible profits in a short amount of time. However, NFTs have the following additional benefits:
- Traceability and Certificate of Origin – Each NFT is unique and easy to verify on the blockchain.
- Ease of Transfer – Due to its digital nature, NFTs can seamlessly transfer from one user to another at minimal cost.
- Utilities – In addition to collectibles, NFTs can provide exclusive access to blockchain features, VIP clubs and more.
In summary, these benefits have been discovered by mainstream investors, so NFTs should only grow in popularity in the future.
Forecast: 2022 NFT development
More than 90% of the NFT market is in Ethereum. This means that future upgrades to the Proof of Stake blockchain should have a positive impact on transaction speed and cost. In addition, eco-friendly blockchains with smart contract features such as Solana, Tezos and BinanceSmartChain are attracting attention. We believe that this will allow this niche to grow only in the future and provide investors with an overall improved experience.
In 2021, NFTs brought crypto assets to the mainstream. It used to be a niche asset, but today most people have heard of NFTs. Inevitably included in the upcoming Metaverse is expected to gain even more momentum in the coming years.