Tech News: Don’t Miss These NFT Trends as We Enter 2022
Everybody has an opinion about NFTs (non-fungible tokens). For some, they are merely a passing trend. Others regard them as the cryptoverse’s next big thing. Whatever your position on the subject, there is no doubt that digital collectibles such as these will continue to impact the cryptocurrency market in 2022.
Apart from their impact on the general public, NFTs have ushered in a new era of blockchain technology, with advancements in smart contracts, the Ethereum blockchain, and a slew of others.
Here are NFT trends you don’t want to miss in 2022:
1. Charities Utilizing NFTS to Raise Funds
The impact of the non-fungible token is already being experienced in the charity sector. In the year to come, the wave of charitable fundraising will gather momentum, with digital collectibles helping to catalyze the trend.
Non-fungible tokens come with intrinsic value. As such, when someone donates a rare crypto collectible, they are also donating the value of its inherent traits. For example, if someone donates a rare token, it comes with intrinsic value attributed to the owner. This is why popular personalities and celebrities’ NFTs have high investment value.
The NFT industry is relatively new, with less than three years in the market. However, the industry’s potential has already drawn the attention of notable institutions. The first charitable trust to accept NFT donations is the ERC-721 Foundation, a non-profit organization founded in 2018.
2. NFTs as a Means of Exchanging Goods and Services
Let’s say you want to buy a certain item. With existing NFT platforms, you can identify the NFT and its condition. Within the next few years, this process will likely be streamlined to use NFT markets to provide consumers with a product or service in exchange.
Introducing this form of ‘NFT exchange’ will usher in a new way of transacting goods and services. This won’t be limited to just physical products. For example, it can provide a service to someone in the form of a virtual or physical asset.
3. NFTs as Financial Assets
Though some NFTs require gameplay to add value to their owners, many are pre-determined. For example, a digital collectible colored blue will never become green. The same logic applies to limited edition NFTs, which have a pre-determined value.
As such, NFTs also can be used as financial assets. Some financial institutions are already considering integrating NFTs as a means of creating a new asset class. As such, NFTs are likely to become a mainstream asset in the next few years.
4. The First NFT Stock Market
Non-fungible tokens that represent stocks can be valuable. For example, someone who owns a supply of a major corporation has a financial asset that can be exchanged for stocks of equal potential value. A market is likely to be created where these stocks can be traded.
The value of a stock depends on some factors. It will become essential to determine methods of valuing NFT stocks to ensure that the market becomes an established one.
Conclusion
We have seen today how NFTS revolutionized how assets are traded. The same pattern may repeat with collectibles and other assets. It’s also possible that other industries will adopt the same technologies to improve their standards.
The future is non-fungible, so expect to see more innovation in the market.
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