A Guide to NFTs and the Metaverse in 2022

At one point, NFTs and the Metaverse were two of the most famous tech empires. Both had seen massive hype just a year ago, but recorded a significant drop. So, are they still as relevant as they used to be? Let’s find out in our guide to NFTs and the Metaverse in 2022.

NFTs and the Metaverse seem to represent a certain time period in the development of technology. Also, they both seemed to benefit greatly from the right amount of publicity and media attention. Years after the hype train has subsided, there may still be value in the projects.

Was it all hype?

Non-fungible tokens were at their peak in 2020, and held great influence throughout 2021. Yet it feels like they don’t have the same prominence that once led them to trade in the price ranges that went into the millions.

Likewise, the Metaverse was a heavily hyped creation. Massive projects, like Facebook founder Mark Zuckerberg’s, pushed it into the mainstream. Once heralded as the digital platform for augmented reality, has it fallen out of favor in recent months?

In 2021, both of these entities were among the most prominent in the cryptocurrency community. There were record sales of Beeple artwork, and the release of the ever-popular Bored Apes and Azuki’s; it felt like the digital capital and NFT Metaverse spheres were interconnected.

Conversely, did 2022 prove it was all just hype? First, let’s take a closer look at each one.

NFT

Non-fungible tokens are very much a part of traditional cryptocurrencies. The digital assets are blockchain-based tokens that have their own unique qualities and functions. Still, u.today noted that many of the financial metrics surrounding NFTs have seen a 40-60% drop from 2021 levels.

NFTs differ greatly from traditional cryptocurrencies such as Bitcoin or Ethereum. They are best understood as a certificate of ownership over a specific piece of digital content. Where NFTs have always been interesting is that they boast a very unique ownership verification that is harder to tamper with; hence their value.

The hype train of NFTs is basically what drove their value. After the initial millions they sold for, they became something akin to digital lottery tickets, with investors hoping to buy the next hot series on a low to sell high.

More than just their investment opportunity, NFTs gave digital artists unprecedented freedom. Anyone can create an NFT, and anyone can buy an NFT, leading to a decentralized form of art collection that had never been created in the digital space.

NFTs are largely created using the Ethereum blockchain. These non-fungible tokens are technically ERC-721 tokens, different from ERC-20 fungible tokens. Many users are able to build new ERC-721 tokens using certain wallets, such as Metamask and OpenZepplin’s collection of ready-made contracts.

The biggest NFTs in 2022

Bored Ape Yacht Club

In 2021, some wildly popular NFTs saw thousands of percent in price per week, so where are they now? Well, one of the most popular was Bored Ape Yacht Club (BAYC), or “Bored Ape”, the most popular NFT on Ethereum.

BAYC was launched by Yuga Labs in April 2021, with early figureheads such as Greg Solano, Wylie Aronow and Nicole Muniz. The collection shows various monkeys with fancy looks and captured due to its stylized art direction. Plus, and what makes it even cooler, is that they’re all AI-generated.

These NFTs also provided the opportunity to join certain clubs and participate in various online and in-person events. Subsequently, sales of BAYC in 2022 have totaled over $1 billion. Celebrities such as Jimmy Fallon, Snoop Dogg and Madonna are owners of the collection. Subsequently, March has seen the introduction of the ApeCoin DAO, and its native token, aptly named APE.

Crypto-punks

Introduced in 2017, Crypto Punks was one of the earliest NFTs to hit the mainstream audience. Canadian software developers Matt Hall and John Watkinson of Larva Lab Studio developed the project. They were inspired by the cyberpunk aesthetic, electronic music and the London punk movement.

There are currently 10,000 cryptopunks; 6,039 men and 3,840 women. Likewise, cryptopunks are AI-generated and boast everything from zombies to aliens to various humans.

In 2022, it was announced that BAYC developers Yuga Labs had actually purchased the IP rights to Crypto Punk NFTs. Although the IP of Web3 now belongs to BAYC, the commercial rights to the actual Crypto Punks still belong to their owners.

Otherdeed for Otherside

Otherdeed for Otherside is a different type of NFT, in that it is a tokenized card used to experience the Otherside virtual world. To date, there are 100,000 items, which represent a card with a surreal image. Furthermore, several of these are available. for 1000+ Ethereum.

Othersides were launched in April 2022, as representations of a country in the game. Also, it’s a side project of Yuga Labs – the same platform that created Bored Apes, and owns the IP of Crypto Punks.

NFT Marketplaces

There are still some viable NFT marketplaces in 2022, with OpenSea being one of the longest-lived. Launched by Devin Finzer and Alex Atallah, it was one of Web3’s mainstream NFT marketplaces. To date, OpenSea remains the most important NFT marketplace in the ecosystem.

OpenSea is still very popular due to its simple interface and design. Moreover, it supports a multitude of blockchains, such as Ethereum, Polygon and Solana. Creators still flock to OpenSea for its 2.5% merchant fees. The only criticism is that it now does not accept fiat-based payments.

Another popular marketplace in 2022 is Magic Eden. Significant because it is built on the Solana Blockchain, the platform raised over $150 million in two rounds of fundraising. Moreover, it had a value of 1.6 billion dollars and is one of the newer marketplaces.

A recent alternative to OpenSea has been X2Y2, which launched in early 2022. The main calling card of X2Y2 is the reduction in transaction fees and expenses. Additionally, it allows those buying or selling NFTs to do so in one large transaction, as opposed to several.

Metaverse

Metaverse is a virtual reality platform that gained a lot of attention in 2021. What made Metaverse so different from traditional online 3D experiences is the emulation of real-world structures and elements. There is shopping, schools, buildings and other activities.

The term was coined by Neal Stephenson in the 1992 novel Snow Crash. Also, 2021 and 2022 saw various media using the Metaverse as a term for a wide range of social interaction platforms in the Web3.

Metaverse became increasingly popular for a number of factors. Most prominent is the natural hype that comes from a development like this. Concepts like DeFi, NFTs and Metaverse are deeply interconnected and the community embraced them all with enthusiasm.

More than just the hype, Metaverse provided enormous profitability potential. Things like Axie Infinity’s AXS and Decentraland’s MANA and Metaverse Tokens will gain more traction every week. It was a platform that was adopted by different brands, which only increased its scope and reach.

Metaverse projects in 2022

Decentralized country

Activated in February 2022, Denetraland was the first mainstream Metaverse project. Launched on the Ethereum Mainnet, it was created by the Decentraland Foundation nonprofit.

Decentraland is a virtual world where anyone can buy a parcel of land, organize events and interact with other users. In 2022, Sotheby’s held the first virtual auction, followed in March this year by the first Metaverse Fashion Week. Brands such as Dolce & Gabbana, Tommy Hilfiger and Estee Lauder participated.

Axie Infinity

Where Decentraland is more of a virtual world, the average person will view Axie Infinity more as a virtual game. It was developed by Vietnamese Studios Sky Mavis in 2018 and has several NFT integrated features.

In Axie Infinity, players can purchase fictional Axolotls, called axies, to use in battle against each other. Each trade that occurs in the game is charged a commission of 4.25%, with two tokens available; AXS and SLP. Although adopted, the game primarily has players from the Philippines.

The sandbox

Originating from a 2021 mobile game, developer Pixowl was acquired by Animoca Brands in 2018. It then raised $4.5 million in 2020 in two rounds of funding; so that it can develop a 3D blockchain-based ecosystem.

The beta version of the game was unveiled in April 2021, and the Alpha was released in November of the same year. It was known for its selection of celebrity endorsements, such as Snoop Dogg, and released its third season of Alpha in August 2022.

Biggest Metaverse Brands in 2022

In 2020, a number of brands and industries attempted to jump on the metaverse bandwagon, and some are still standing today. Most notable is Mark Zuckerberg’s passion project, Meta. The project is one of the most overhyped of the Metaverse, and has failed to live up to the expectations that the mainstream media set for it.

Gucci is another brand that joined the craze in 2022. With a long-term partnership with Roblox, Gucci Town was introduced to the game this year. Gucci also has a concept store in The Sandbox.

Finally, Xiaomi is a brand that is still present in the metaverse in 2022. The brand announced an interaction with Te Sandbox and Decentraland, with the Xiaomi Redmi Note 11 smartphone released with the possibilities of the 3D experience.

Verdict

Although both NFTs and the Metaverse projects in 2022 have not had the same hype as 2021, there is no doubt that they still have a place in technology. Overall, the world of digital assets has taken a downturn in 2022, but the next bullish run could see them return to an infamous spot.