NFT Development Trends 2023—In-depth Guide Upcoming NFT Change
One of the top questions right now is — Does NFT have a future?
The year 2021 made history as the golden era of crypto, NFT and blockchain development services, as their popularity tripled in popularity. In 2022m we saw the stabilization of the market and development of the technologies, while the industry went through a major change—shifting to basically the metaverse.
Our OmiSoft specialists have prepared for you a detailed analysis and forecast of the fate of NFT development.
It’s really a major change because now users can interact in virtual marketplaces. But will NFT development still stay strong in 2023?
NFT Market: Top NFT trends for 2023
With such a constantly evolving market keeping up with top NFT trends is not easy. But if you are planning to hop on main trends for NFT or you want to boost your existing blockchain projects, you need to know what is up and coming. So, let’s dive into the predictions based on leading European software companies for the next year.
Trend 1—NFT Gaming & GameFi
We are starting with 2 big trends that started in 2022 and age going to be stronger in 2023. That’s NFT gaming and GameFi
- NFT gaming. Gamers were one of the first who understood how the gaming industry can benefit from the rising trend for NFTs. The window of opportunities is almost endless, for example, gamers can use assets to create game content and sell it on OpenSea, or similar platforms. The secret to harnessing NFT tech in games is paying attention to this technology and implementing it in blockchain games.
- GameFi. As a rule, games have different tokens that provide different benefits for the player and those can be easily turned into NFTs. GameFi allows the creation of cards, clothing, or avatars (that can be sold for real money on NFT markets), and claims to reduce the cost of NFT development and increase loyalty. For example, in 2021, the most popular game that used the “play and earn” (P2E) model was Axie Infinity. It generated more than $4.5 billion in revenue. And will NFTS Continue to be profitable in 2023? Hard yes!
Trend 2—Metaverses & Augmented Reality
There are so many NFT developers discussing, but for starters, the metaverse doesn’t even exist yet. But what is it?
The metaverse is going to be the 3D experience layer of the Internet, the same as WWW, its 2D counterpart.
But the chances that we are going to see a full metaverse in 2023 are naive, as it will take at least a decade to realize that vision. But what can we expect in 2023 for the metaverse?
The economic slowdown will chill the market, but it won’t be a bad season for development. The slower season will allow vendors to build infrastructure and use cases without rushing.
Here are a few more predictions for metaverses and augmented reality:
- No metaverse’s Pokémon GO moment
- Brands will change their tactic of creating just “cool” NFTs to creating loyalty programs. (BTW Louis Vuitton and Starbucks are already doing this smart trend in 2022, as both brands use NFTs to provide exclusive perks to their clients)
- Employees will adopt NFTs for personal use, after getting used to them in a work environment (like Microsoft’s Mesh components in Teams).
Trend 3—NFT for music
The next trend that will take the world by storm will be NFT music. This sector is not too popular yet, but artists and fans can make money in this ecosystem.
- NFTs allow provoking shortage, and therefore interest
- Musical artists receive 100% ownership, so it’ll be harder to distribute without copyright
- NFT give autonomy to musicians
In the next 3 years, the industry of NFT music is expected to acquire over $80 billion.
Trend 4—NFT Real estate
- Increases the security of info
- Protects buyers and sellers
- Speeds up the transfer process
Another NFT trend that is waiting for us in 2023 is NFT real estate. The biggest issue with investing in real estate is the ownership transfer battle. And it can be solved with NFT, as it allows investors to confirm ownership in a few minutes. Therefore, using NFT in real estate is a very promising development trend in the next year. And very few companies use it yet, so it can be a chance for one of you, our OmiSoft blog readers.
Trend 5—Fundraising platforms
Last but not least, the trend is using NFT for raising funds. Smart contract technology provides more options to make NFTs that can automatically provide liquidity for transactions. It’s possible due to using funds as cryptocurrencies with minimal gas fees.
Also, since it’s built on the blockchain, it benefits from secured algorithms and a more easy-to-track and transparent database for the public.
Will NFTs continue to be profitable in 2023?
If you are wondering what profitable NFT trends are coming around the corner, let’s take a look at some of the most promising ones, prepared for you by our professionals.
NFT marketplace development on a centralized exchange
NTSs are traditionally sold on exclusive auctions. But to buy NFTs a person must have cryptocurrency that can be bought on one of the exchanges. Pro users can do it without a thought, while newbies can feel quite intimidated. What are the risks?—One mistake and funds are permanently lost. Which gives a window of opportunity for crypto exchanges to use NFT space.
Why is it a good idea?
- Better user experience
- Fewer risks
- Reduced fees
- Grow of profit margins
Some of the biggest crypto exchanges are already testing their waters and implementing NFTs. But as it’s so new, there is no data on revenue.
Many companies are exploring their way to jump on the NFT bandwagon. They are trying to use NFTs to support both content creators and their audiences. What can NFT give to the music industry?
- No falsification and duplication
- NFT creates a permanent chain of custody that can’t be altered
Up until lately, the only way to verify the authenticity of collectibles was to use the services of a professional. It takes long, has a possibility of errors, and is not 100% secure due to human factors. NFTs, however, fix these problems. That’s why many consider NFTs to be perfect for authenticity verification.
Venture Capital Into NFTs
- Some VC capitalists see NFTs as crypto revival
- Global NFT sales in September 2022 totaled $634 million
It’s no surprise that venture capitalists want to use the NFT craze to their advantage. The trend for turning VC capital into NFTs started small, but after making over $23 million from the first case, the popularity ballooned in both frequency and amounts of investments.
Launches of Alternative Chains
With the first gen of projects made on Ethereum in 2017, people were able to buy and sell NFTs, and transaction fees on the blockchain were minimal. But after the boom of NFT mania in 2021, the fees skyrocketed and reached hundreds and sometimes thousands of dollars.
While it was just an inconvenience for crypto millionaires or pro flippers, high fees created an entry barrier for regular investors. That’s pushed creators to launch on blockchains that have lower fees, like Solana or Avalanche. That’s why the chance of new alternative blockchain launches is pretty high.
Increase of Government Regulations
When crypto investors have dealt with regulation threats for years, regulating NFTs is a relatively new phenomenon that governments are very interested in. But because NFTs are bought and sold with crypto, and using cryptocurrency wallets is in most cases anonymous, regulators become even more interested in controlling the $20 billion+ NFT market.
Social Media NFTs
The popularity of using NFTs as profile pictures is a clear sign that the NFT is becoming mainstream. This trend appeared only in Jan 2022 when Twitter allowed users to swap their profile photo to an NFT, and shortly Facebook followed.
The interesting thing is how NFT companies verify the ownership of the NFT. As you know anyone can download a profile pic of any user, which creates a problem of ownership. To deal with the problem companies use some sort of profile outline or badges verified inside the user’s crypto wallet.
Domain Names on Blockchain
And last, slightly less exciting, but the way more practical application of NFT tech—blockchain domains. But why do NFTs become so trendy for Blockchain Domain Names?
- Wallet’s “address” is a random mix of 30+ letters and numbers, which is nearly impossible to memorize
- Creates major inconvenience for users
The solution to this problem lies in NFTs for Blockchain Domain Names. It’s different from regular .com domain names, as they are not used to host the website, but act like a shortener of the name due to the ERC-721 tokens (the tech behind NFTs). Boost inconvenience resulted in an increasing number of crypto users who want to have their domains.
These are 7 macro-trends that we expect to continue to be profitable in 2023 and beyond.
During the gold rush, sell shovels = do your projects
Timing is everything when it comes to developing an NFT marketplace or launching NFT collections. But success is something that can’t be guaranteed, but there are steps you can take to improve your chances of it.
- Consider the principles (Proof of work, delegated proof of stake, proof of history, proof of space-time, proof of authority)
- Pick an NFT Ecosystem (Ethereum, Polygon, Solana, Flow, WAX, Tezos)
- Hire a pro NFT development team. You’ll need an artist, a software engineer, maybe two, a Discord moderator, and a social media manager
Read a fuller guide on creating Solana NFTs read this article, to develop an NFT minting site read this. And if you are interested in NFT marketplace development this article might be interesting to you.
How much will it cost to create an NFT project?
Budget can be a real deal-breaker for many people looking to launch an NFT collection. To know how much you need, you should what exactly your projects require. For example to create NFT minting website you need to know:
- What features it needs to have
- Complexity of Smart Contract and site in general
- Development team rate and their location
On average simple Smart Contract development can range from $5K+ (Eastern Europe) and from $10K+ in the USA and Europe. The more customization you need the higher the sum. Want to learn more about the cost of launching NFT collections? check out our in-depth guide on that here.
If you decide to develop an NFT marketplace the cost can increase up to $20K – $30K. If you want to reduce expenses for your NFT project, book a free consultation with a niche OmiSoft expert. We can offer standard website development for around $3K.
Want to develop your own NFT marketplace? Read more about it in our article.
As you can see NFT development trends are going strong for 2023. There is no sign of going down anywhere soon. We hope that our predictions satisfy your curiosity and inspire new blockchain projects. If you have a creative NFT idea and want to incorporate new and upcoming trends, our NFT and blockchain development company OmiSoft is ready to help.
Drop us a line and book a free consultation with an NFT specialist.Contact Us!
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