NFTs have evolved from being mere pictures built on the blockchain to in-game utilities and assets through which owners can earn. In 2022, the total sales of NFTs were recorded at $55.5B higher than $20.2B in 2021. One of the key factors for this jump was the massive creation of games that used NFTs in 2022.
Come 2023, the narrative will change. According to a CMC report, AI-based utility products in the form of games will come to the limelight in 2023 which will have the integration of NFTs in them. There will be more advanced games released in 2023 to “unlock and enhance” the IP application of NFTs.
Furthermore, CMC explained that more Web2 firms and intellectual property are coming into Web3 using NFTs as an entry point. It will bring about more attention on the development of Web3 native IPs integrated with NFTs.
“The intersection of NFT and AI, such as art and gaming asset creation, gameplay design, using AI-based NPCs and the overall creation of transmedia content, remains another fascinating focal point,” CMC said.
Rush and crash of games and the metaverse in 2022
According to CMC, in 2022, NFTs were utilized more in Web3 gaming and related consumer services like loyalty and ticketing, metaverse experiences, and social applications (such as social media platforms). Yet, as the crypto market went down, NFTs also suffered especially those tied to play to earn games.
Some of the factors outlined in the report for this crash included poor tokenomics and inefficient gaming experience for gamers. Thus, “it’s clear that the industry is beginning to understand that Web3 gaming and metaverses will take time to go mainstream”.
With this in mind, a redirection towards developing proper gaming infrastructure, efficient wallets, marketplaces, and NFTs becomes important to bring better services into the “more complex incoming metaverses as well as Web3 social applications and products” that will be seen from 2023.
NFT lending is a process where holders of certain NFTs use their collectibles as collateral to get loans which they are required to pay back before gaining access to their NFTs.
CMC revealed that NFT lending will improve over time as more users are interested in it as well as an increase in sources of liquidity.