The evolution of NFTs and other Web3 predictions for 2023
We came, we saw, and we (barely) conquered 2022. The world witnessed many innovations emerging from the Web3 space, such as fractional NFTs to purchase luxury goods and real estate, fashion shows and shopping in the metaverse, and the intersection of music and technology through NFTs. But last year wasn’t all peaches and cream. There were some low points for Web3 too, like NFT projects with a ponzi scheme, a racist AI rapper, and the downfall of FTX. But with great technology comes great innovation, which leads me to the question: What’s next for Web3?
I asked Web3 thought leaders and creatives what their predictions were for the space in 2023, and this is what they had to say.
Community leader of RTFKT Cas thinks we will leave a few things in 2022 – for example the term “NFT”. He predicted: “The stigma around NFTs doesn’t match what’s actually happening in the space. In the years ahead, I think many projects will focus more on the benefits than the technology.” Especially for this year, Cas believes that the “latest trends will be focused around the ecosystems that have built in Web3, such as DAOs, digital collectibles [and] social rewards. Many teams have spent a year or more working together with their contributors or collectors, and we’ve seen how powerful social customization has worked recently. I’m also excited to see more entrepreneurs thrive or find niches in the space. I think most people would agree that a good artist or developer can find opportunities in Web3.”
Web3 artist and Bad Grrls Creative Club founder Toni Thai took a different approach, saying it’s hard to make predictions because “the space is moving so fast. Plus, with the economy where it is, all industries will be affected. However i think one trend that has emerged with no sign of slowing down is DeFi (decentralized finance).For anyone who doesn’t know much about the space, DeFi refers to financial apps built on or around blockchain technology that operate in a decentralized manner, so there are no intermediaries or intermediaries.” She also stated that she believes NFTs are not going anywhere, and that they will be “used much more in ways outside of art.” “I think the strongest use case is ticket sales, so scalpers need to quickly find another side hustle,” Thai noted.
It seems that people are still quite hopeful about the development of Web3. Music artist Black Dave insisted: “Despite the conditions of the crypto market, Web3 and NFT will continue to flourish, as the people who built during the first year of the bear market will probably start to launch the ideas that they generated. I think in 2023 we will not just see mainstream artists enter the NFT landscape but we will see an artist native to Web3 have their first breakout moment I think the first breakout success from Web3 will be a rap or rap-adjacent artist but the time will show.”
Director of Partnerships at Dapper Labs and NBA Top Shot Nate Hemmingway had similar thoughts regarding NFTs and the future forecast for Web3. He mentioned, “A lot of these cash-strapped, frivolous, non-real projects will fizzle out and kind of become obsolete. Similar to the dot-com bubble when these companies went bust. The ones that have succeeded built real communities and have real utility . [They’ll] still feeling some downward pains, but will double down on what has made them successful so far and continue to build their community.” Hemmingway is another thought leader who believes NFTs won’t go anywhere. He added, “Many Fortune 500 companies will continue to use NFTs as smart ways to use Web3 like rewards programs like Starbucks.” He also said he hopes “the first sports team or venue figures out how to use Web3 and the blockchain as their own internal ticketing system because there is a huge resale market that these entities are missing out on by outsourcing to Ticketmaster, SeatGeek, StubHub” etc. .
Web3 educator and Tech Run’s DAO community builder Ashley Caine had this to say regarding predictions for the coming months: “2023 is the year of the DAO. Decentralized autonomous organizations are easily understood as IRL and online communities with voting systems and a shared bank account. With the industry currently in a bear market, organizations with strong communities emerging regardless of the economic situation of the market will thrive this year. Not only will many, many new DAOs be created, but established DAO brands will transcend industry notoriety to become famous name this year as PFP brands like Bored Ape Yacht Club did during the last bull market.”
What are my Web3 predictions for 2023? Well, 2022 ended with celebrities like Tom Brady, Steph Curry and more under fire for promoting FTX, as there is a class action lawsuit filed by investors who said the company was a ponzi scheme. Not to mention Chee… I mean, Donald Trump… is being investigated after selling off his NFT project and making $4.5 million for minting some of his own collectibles. This wave flowed into 2023 with Logan Paul on the outing with his team, who helped him drop his NFT project. Based on these events, one of my first predictions is that there will be an increase in regulations regarding who can drop NFT projects and how, plus more regulations for influencers promoting them and/or cryptocurrencies.
I also predict increased use of AI technology. Currently, artists and many others are looking to platforms like ChatGPT to take the “creative” aspect out of creating. But I believe that artists will begin to embrace this technology and use it to take their art to new heights.
In the end, I think Web3 companies and projects in general will have to go outside their normal group of hype/FOMO participants and will be forced to educate people on board. In the past, companies got away with hype as a marketing strategy to get people interested in their projects, but with today’s market situation, people are more skeptical than ever when it comes to Web3. This will force owners to actually educate individuals about the basics of the space and dispel any myths or fears they may have. This will result in innovations and more people on board.
The beauty of Web3 is that it is so new that we cannot even fully understand how the technology will be used in the future. Every day someone figures out a creative way to use blockchain technology, so I’m excited to see what’s next.
