1. Non-fungible tokens or NFTs are most likely to pick up pace in the market value this year
2. Blue-chip NFT collections gear up for new projects in 2023
3. Music and Fashion industry are going to massively adopt the technology this year
The NFT market has been a rollercoaster ride in 2022 ending in a bear market yet the creators and artists are actively adopting this technology. According to the DappRadar report, a total of 101 million NFTs were traded in 2022 with most in Q1. Even though this is a huge amount of collectibles, they were sold at low USD prices.
With the beginning of the new year, there are many upcoming projects and surprise drops to anticipate. This article is an NFT future market analysis in 2023 based on current trends.
Before we dive into future predictions, you should know the overview of NFTs in the previous year.
- In January 2022, we saw a massive surge in collectible buying among celebrities. Justin Bieber bought Bored Ape for around 1M dollar, which is now worth less than $100,000.
- The Ukraine-Russian war brought together the community to help the country defend itself by donating valuable NFTs.
- The first quarter showed great response from the collectors but then, Tera/LUNA/UST collapsed.
- In May, the Moonbirds collection by Kevin Rose debuted for the first time accumulating $1M in sales within a week.
- Otherdeed ranked highest, recording the highest sale of the year with Ethereum clogging due to massive demand.
- In the second quarter, 13 NFT Discord communities got hacked including Yuga Labs’ and Zeneca became the victim.
- Polygon announced partnerships with Disney, Reddit, and many other projects, making it the highest-ranking blockchain in the NFT market.
- Nike became the top-selling fashion brand in the NFT sector with billion-dollar sales generated revenue; others following the trend include Adidas, Gucci, Dolce & Gabbana, and many more.
- However, with the FTX collapse, the NFTs once again dropped in value and sales also decreased to half. Eventually, the year ended in a bear market.
What to anticipate: NFT Market in 2023
2023 has in store many new projects for NFT enthusiasts.
OpenSea is most likely to remain the largest marketplace on the Ethereum blockchain. According to Dune Analytics, the platform generated the highest trading volume in ETH among others.
CryptoPunks remain the top-selling collection followed by Bored Ape Yacht Club, Mutant Ape Yacht Club, Art Blocks Curated, and Otherdeed.
In 2022, Moonbirds was added to the list of best-selling projects. In 2023, there will definitely emerge a new collection to take over the marketplaces, until then people will keep investing money in Bored Apes and CryptoPunks. In fact, BAYC has announced the mint for “Trial of Jimmy” in March 2023.
When it comes to top blockchains, Polygon leads the sector. Offering cheaper transactions, scalability, and being a good alternative to ETH, this blockchain will most likely dominate NFTs. DeGods have already announced y00ts will shift to Polygon from Solana.
2023 will be a year of anticipating new developments in Metaverse. In the past year, virtual world items gained more attention than PFP avatars due to their utility for players. The best digital platforms in 2023 are The Sandbox, Decentraland, Axie Infinity, and Otherside.
Fashion and Music is the new trend of 2023
Based on last year’s trends, the fashion and music industries are most likely to emerge as powerful adopters of this technology.
Brands and label companies have been reaching out to different Web3 platforms. Most of them are looking to adopt phygital NFTs with their products meaning the blend of physical and digital to achieve mass adoption. Prada, Nike, D&B, etc have already begun working on it.
In terms of music, at first, musicians were releasing artworks or their creative works as NFTs. In 2023, the music NFTs and platforms will become popularized because of the ownership feature. Singers will get a chance to directly profit from streaming and buying without any intermediaries while fans might also get some part of their earnings as well.
Absolute Reports data indicates the Music NFTs market is most likely to generate $6002.0 million by 2027. This is higher than the previously anticipated sales volume in 2021.
Furthermore, virtual concerts will be held more. The pandemic caused many singers and bands to shift their performances from physical stadiums to virtual platforms. The companies realized that it was easier and more convenient for fans to enjoy music in a virtual space. In this aspect, metaverses will gain much more popularity and increase in users.
Whether the crypto market picks up a bull run or not, the non-fungible tokens will actively be adopted in various forms in 2023. There’s a high possibility that NFTs will unlock new utilities and not necessarily stand out but will integrate with existing technology.
Overall, 2023 is going to be a new year of developments and discoveries as the community anticipates upcoming projects in the blockchain sector.