Trends and problems that will come next year
In the year As 2023 closes the curtains, non-fungible tokens (NFTs) will continue to be a big part of the Web3 space. Community members are looking ahead to 2024 with bullish eyes, believing that the future holds a lot for the property class.
From the NFT game to continued regulatory uncertainty, Cointelegraph spoke with a variety of Web3 experts to share their views and predictions on which trends will continue into 2024, as well as what challenges NFTs may face next year.
NFT predictions for 2024
The relationship between the digital and the physical
Experts working in Web3 predict further growth in the relationship between digital and physical assets by 2024. The NFT space is set to play a part in this intersection, says John Crane, founder and CEO of SuperRare Labs – the entity behind the NFT marketplace SuperRare.
Crane believes there will be a “significant increase” in the relationship between the two worlds, and NFTs will play the role of “digital twins and certificates of authenticity.” Additionally, Crain told Cointelegraph that collectors love physical editions of NFT art, which could be another growth driver next year.
In the year In 2023, tokenization of real-world assets (RWAs) was a big discussion in various parts of the crypto space. This trend will continue in 2024, O Tongsrinon, chief marketing officer of Altava Group, which connects luxury fashion brands to Web3, told Cointelegraph.
2/ Prediction 2: RWA Tokenization Real World Asset (RWA) tokenization will power the blockchain economy driven by real estate and commodities. Tokenized RWAs leverage XRP Ledger-backed loans, improve functionality, and attract institutional adoption, aligning…
— Ripple (@Ripple) December 20, 2023
Tongsrinon explained that NFTs are more than profile pictures (PFPs): “We've always been a big believer that NFTs have more utility and value than PFPs. Additionally, the executive shared that Altava has implemented RWA tokenization for its clients in areas such as branded goods, intellectual property ownership and management, exclusive access and product consulting for NFT collections.
The executive added that RWA tokenization will allow NFTs to “pass the guesswork” and have real-world value on the assets. Tongsrinon in 2010. He stated that by 2024, he could see NFTs penetrating industries such as precious metals and real estate.
Vineet Budkim, CEO of Web3 venture firm Cypher Capital, also made similar predictions. “Beyond the initial hype, 2024 will see NFTs evolve into useful tools with real-world applications. Expect fractional ownership of assets, dynamic digital experiences and hybrid physical-digital hybrids,” Budki told The Telegraph.
NFT game will start in 2024
Another area where NFTs are expected to play a role in 2024 is gaming. Jason Lau, chief innovation officer at crypto exchange OKX, told Cointelegraph that despite some players' concerns about Web3 games and NFTs, video game companies are diving into the space. The executive mentioned Square Enix's game Symbiosis and Mythical Games' NFL Rivals, both of which use NFTs. Lau explained:
By 2024, I expect a new wave of Web3-enabled games to expose NFTs and new avenues to a diverse set of players as users' ownership of digital in-game objects, characters, and assets drives greater engagement and opens up new business. Models and gameplay.
Crane echoed Laun's sentiments. According to the executive, the first iteration of NFT games relied on symbols that were part of the games' novel rather than building fun games for players. Crain's expects 2024 to be different, as some games are starting to go in a different direction: “We're finally seeing Web3 game studios build great games that use NFTs and Tokens.”
Henry Chang, CEO of a South Korean game development company, predicted an increase in blockchain-based games in 2024: Chang explained that as developers gain more experience and confidence in implementing Web3 elements in games, the gaming community can expect more sophisticated blockchain in-game mechanics and gameplay usage.
Bitcoin NFTs are entering the mainstream even more.
With Bitcoin-based NFTs taking the space by storm in 2023, Web3 experts expect it to grow even more next year. Lau believes that the trend of placing NFTs on the Bitcoin network will continue in 2024 as educators become more “educated and savvy.” The executive said many are tired of NFT projects that are nothing more than “quick cash grabs”.
In the year The Growth of Standard Markets in 2023!
Trading volumes for #Bitcoin Ordinals have surged, indicating buoyant market activity.
With a staggering total volume of over $1.2B and over 1.4 million transactions, the demand for unique digital assets on Bitcoin is undeniable. pic.twitter.com/Yrad9ukmVo
— Thesis* (@thesis_co) December 26, 2023
Lau also said Bitcoin Ordinals have shown “amazing staying power”. According to the executive, one of the appeals of Ordinals is that the wisdom and data of NFTs are placed directly on-chain. Lau added that this allows participants to benefit from the scarcity, security and flexibility in the Bitcoin blockchain.
Thingsrinoon is also confident that Bitcoin NFTs will become more prosperous in 2024. Although the executive NFTs will take a beating in 2023, Bitcoin-based NFTs have gathered momentum. He believes that this is very good for crypto and can contribute to rekindling the interest in Metavas.
Challenges for NFTs in 2024
Overcoming isolation and fatigue
One of the biggest challenges the space will face in 2024 is the change of public narrative to NFTs, according to Cointelegraph experts. Crane said NFT projects must work hard to change the public perception that the technology is only used for fraud. “There's a lot of work to be done, but by building engaging products and providing real value, we're seeing people's attitudes start to change,” Crane said.
Meanwhile, Lau shared that the cyclical nature of crypto also applies to NFTs. The executive believes that many who were educated and hooked on NFTs in the last cycle are still “very skeptical” that NFTs have moved beyond the false hopes of the past. However, Lau believes there are signs of recovery towards the end of 2023.
Tongsrinon believes that projects that survive the crypto winter must be innovative. The executive highlighted that the emergence of Bitcoin NFTs will help facilitate and fast-track the NFT space by creating healthy competition and reviving interest in the NFT space in general.
Regulatory issues surrounding NFTs continue.
In the year By 2023, the United States Securities and Exchange Commission, the nation's securities regulator, has targeted the NFT space. He filed the first unregistered securities claim against NFT stock sold by entertainment company Impact Theory. Many disagreed with the SEC's approach, with some commenting that the regulator has a problem with the fact that all NFTs are securities.
The impact theory of the SEC's prosecution of selling NFT securities is a huge issue.
Because if you look closely at the list, the statement refers to quite a few NFT projects – perhaps even the ones you already own. pic.twitter.com/75kY0QQIDG
— wale.moca (@waleswoosh) August 28, 2023
According to Lau, NFTs remain a “grey area” even as rulings begin to create clarity around crypto assets. The executive pointed to the markets in the Regulation of Crypto-Assets (MiCA), highlighting that the EU will leave the general law on crypto, NFTs and special assets outside its scope.
Budki echoed the same sentiment, saying the situation creates uncertainty for businesses and investors. As the executive NFT continues to grow in 2024, the space needs a clear legal landscape.
The future of NFT
When asked about their thoughts on the future of NFT, the executives expressed a harsh opinion on the technology. Crane believes NFTs will become the standard infrastructure for the Internet. The executive highlighted that NFTs provide a simple and effective “method of authentication” of digital content. He explained.
“This will have profound implications, especially in a world where AI capabilities are rapidly increasing. Being able to distinguish between what is real and what is not will be an extremely important feature in the next phase of the Internet.
Meanwhile, Lau doubled down on the role of RWA tokenization and NFTs as representing what humanity finds useful in the digital and physical space. Additionally, the executive described NFTs as a blank canvas that can morph and adapt to capture an “endless range of possibilities.”
