Non-fungible tokens were a huge hit when they appeared. The idea that each NFT is unique and presents a blockchain record of authenticity and ownership of something digital (or even physical) was appealing to the public.
The frenzy was so huge that The Merge NFT reached a selling price of $92 million, making it the most expensive non-fungible token in history. Everydays: The First 5000 Days followed with $69 million, while somebody bought the Clock NFT for $52 million.
Today, people prefer to buy crypto with credit card options and invest in conventional coins. But can NFTs make a big comeback in 2024? Some factors point out that could happen, and you can find an in-depth analysis below!
What Propelled the NFT Boom
Before discussing the future, let’s consider the past of NFTs. What were the factors behind the NFT’s boom? The actual idea was interesting – you can prove authenticity and ownership of a video, photo, or any other asset.
Non-fungible tokens started on the Ethereum network since their use required smart contracts. However, adopting the Ordinals protocol to the BTC blockchain also brought Bitcoin NFTs, whose use cases are still a bit limited compared to their smart contract alternatives.
But these are the factors that influenced the fast development and popularity of NFT tokens:
- Intense media coverage. Bitcoin’s popularity was a huge surprise for the general public. Since then, the media worldwide has paid close attention to the crypto market. Once NFTs appeared, you could find reports regarding these tokens all over the news. Major media outlets regularly published stories about record-breaking sales and new digital millionaires. Many articles regarding how NFT technology works also appeared, which is how these tokens generated huge attention on a global level.
- Celebrity NFTs. Influencers and famous persons jumped on board to use the NFT potential to their advantage. Many celebrities launched their own digital collections, including Snoop Dogg, Elon Musk, and Lindsay Lohan. Paris Hilton and Tony Hawk also had some of the most successful NFTs. Celebrity tokens attracted fans because they were another opportunity to boost the bond between famous persons and those who adore them.
- NBA Top Shot. The National Basketball Association launched an entire platform for NFTs. It uses blockchain technology as a base, and you can trade, sell, or purchase video highlights officially licensed from the NBA. Although collectibles were initially popular, the platform hasn’t had much success lately.
Key Trends Shaping the Future of NFT Growth
AT first glance, it might seem the NFT market is going through a rough patch. But if you check expert reports, you’ll find encouraging data. The market is now worth $2,378 million, and the industry is likely to reach $3,369 million by 2028. In other words, the expected CAGR (annual growth rate) is over 9%. The reports also indicate that NFTs will attract up to 16.35 million users in four years.
Here are the trends that could shape the future of NFT growth:
- Polkadot’s commitment to interoperability. Interoperability can be crucial to the long-term success of non-fungible tokens. If you can create NFTs on one blockchain and then transfer them to another, that could increase their reach and value. That means those active on other blockchains could also acquire coins, making them more valuable. Polkadot is committed to interoperability and compatibility with other blockchains. Many layer-2 solutions built on the same layer-1 chain are also compatible, so they are another tempting option for creating NFTs.
- Matera’s protocol approach to verification and authentication. Metaverse has never been closer, and many developers focus on making toolkits that could improve users’ virtual experiences. Landvault is working on Matera, which is a suite of tools that delivers a layer-2 infrastructure with great scalability. That should help creators bring the desired world to users easily. Some features include SDK and asset IP verification and tokenization. That means you could connect the IP rights of a physical asset to a digital asset and confirm authenticity and ownership. Tokenization, wallet, and payment systems indicate that this is also an economical solution. Developers can create new economies and enable payments while receiving detailed analytics to measure their project performance.
- AI-powered NFT Art. Artificial Intelligence has made significant progress over the last few years. Today, you can create incredible NFTs generated with the help of AI. Bicasso is an innovative tool that helps achieve this goal. It’s user-friendly software that generates customized images. You set the parameters and reference images, and Bicasso does the rest of the job.
Predictions for 2024 and Beyond
As a part of the crypto market, non-fungible tokens are also subject to high volatility levels. After a few turbulent years, the digital asset industry seems to be entering a new blooming phase. The recent news of Bitcoin breaking the $70,000 milestone proves that to be the truth. This information indicates the NFT future could be promising, too.
Some new options could propel the new NFT token boom. Overall, blockchain technology will continue to progress and boost interoperability. That increases NFT’s versatility, which subsequently improves user interest and value.
Leveraging the power of artificial intelligence could also be of importance to the NFT market. Bicasso is only the beginning; using AI to generate unique photos, videos, audio, and other digital assets could lead to the creation of some fantastic NFTs.
Conclusion
The overall impression is that non-fungible tokens have an exciting future, and they’ll follow as long as the crypto industry keeps going forward. Along with the tech advancements, it will be necessary for NFTs to attract the attention of creators and investors.
Creators are primarily artists who can create unique and top-quality tokens but also owners of potentially rare and valuable assets interested in confirming their authenticity and ownership with an NFT. Investors could be celebrities and companies launching their collections, as well as traders looking to profit from investing in coins with huge potential. The ultimate conclusion is that NFTs have great potential and plenty of room for future growth. That’s why jumping on board and considering investing in these tokens could be a wise move.
