The future of NFT: 3 predictions

By Valentina Zakirova

Currently, the NFT market is one of the hottest, most talked about topics around the world. NFTs, or non-fungible tokens, have garnered huge amounts of interest from creators, investors, and curious onlookers alike.

One of the main criticisms of NFT art is an “unreasonably high cost”. However, it’s important to remember our economics lessons here: nobody would buy them if this were true.

Despite talk of NFTs being “useless” and overpriced, the technology has found its way into several business niches, especially the creator’s economy. The market as a whole is expected to see a CAGR of more than 35 percent through 2026, growing by just over $147 billion.

As an investor, I have supported the leader of the creative economy – Patreon. The company is a platform that connects creators with fans and allows fans to provide financial support in exchange for content and exclusive rewards. Right now, Patreon is worth more than $4 billion.

The NFT market can perform a similar function, but on a larger, more decentralized scale. In 2022, there will be a major revolution in the creative industry, thanks to NFT technology. The rules of creating have changed, and this new era allows creators to own their content and communities. It also gives them more power over their assets, which means even greater independence.

So how will this change the market? Here are my predictions.

1. Creators want more freedom.

One of the main points of interest for NFTs and cryptocurrencies is the idea of ​​decentralized ownership. In the NFT area, this specifically means that there is no central controlling body or censorship. Without a single entity to moderate the content, the metaverse can provide a free space for self-expression without restrictions.

It also means that creators will be able to build a community based solely on their values ​​rather than conforming to the values ​​of a brand, country or platform. The decentralized nature of the technology means that NFTs will lead the charge toward a “final frontier” for actual free speech.

Finally, the fact that creators can earn money based on each NFT transaction means they will be completely independent, rather than relying on third parties taking a cut of the revenue.

2. NFTs will drive a diverse metaverse that will reach into the real world.

The metaverse is still in its infancy, relatively speaking. However, I think we will see a significant increase in the number of metaverses appearing in the near future. I also expect these metaverses to be filled with NFT items and have their own unique economic systems.

Gartner predicts that 25 percent of people will spend at least an hour per day inside the metaverse, and they believe that a combination of crypto and NFTs will be the driving force of the virtual economy.

There will almost certainly be some overlap between the real world and the metaverse. Cross-world synergies, collaborative artwork, and crossovers will blend the two realities into something more meaningful and exciting than we’ve ever seen.

An important thing to understand is that the metaverse is far from reaching its final form. The future that experts predict is for a metaverse that has yet to fully take shape. Because we can expect such tremendous growth and maturity in the concept over the next few years, the potential for NFTs is enormous.

3. The NFT industry will see a significant influx of private investors and creators.

When investors and creators really start to understand all the potential benefits of NFTs, there will be an explosion of interest in the industry in general. We are only in the starting phase now, which means that there are only a relatively small number of early adopters on the playing field.

The figures show that there are currently only around 360,000 NFT owners around the world. However, NFT sales grew by 131 times between 2020 and 2021, and the NFT market is currently valued at $40 billion and rising.

As the industry continues to build interest and gain momentum, all of these new players will be able to go through the adjustment period to learn how to navigate the new technology. Investors will learn the intricacies of smart metaverse investing, and creators will learn how to make the most of their newly expanded creative abilities.

NFTs are the future of the virtual economy

Because NFTs and the metaverse are still in their early stages, there is a healthy amount of skepticism from the public about whether they are viable in the long term. I am convinced that NFTs will only grow in popularity with time. As the metaverse takes shape and becomes more widespread, NFTs will have the power to completely revolutionize how we buy, sell and create, both online and in the real world.