By Umberto Canessa Cerchi, CEO of Kryptomon, a blockchain-based NFT Play-To-Earn game
To many, 2021 was the year that NFTs exploded. Such one-of-a-kind digital offerings have made their way into the mainstream, with celebrities and influencers alike getting involved. While opinions on NFTs range across the board, there’s no denying that the technology is here to stay.
However, while 2021 saw NFTs gaining mainstream publicity, 2022 is set to be the year NFTs are integrated in a much more solidified way. This escalation will be due mainly to a larger understanding of NFT capabilities, regulation of NFTs, and industry accessibility as a whole.
From Arts to Other Realms
NFTs are no longer just collectibles. These unique digital assets provide users with one-of-a-kind ways to represent themselves in the virtual realm. For example, Twitter has implemented native support for NFTs as profile pictures, allowing anyone to showcase their legitimate collectibles. Twitter’s support even links to the NFT’s OpenSea listing alongside the asset’s original creator.
With the rise of Metaverse projects like Decentraland and The Sandbox, players will utilize NFTs to accessorize their characters and decorate their houses. Eventually, we may see a world where non-fungible assets represent all online expression.
Regulations are Necessary
Of course, with all of this usage comes regulation. Cardano founder Charles Hoskinson predicts that 2022 will be the year that regulators step into crypto in force — especially when it comes to NFTs and decentralized finance as a whole. Hoskinson notes that the crypto space’s massive growth will come back to bite them somehow, as regulations will introduce new rules and methods of doing things.
With regulation comes a swathe of new users. Institutions and similar big investors are hesitant to enter the unregulated space. Many have said they’ll be ready when solid regulation is in place. Could 2022 be that year?
As the ICO boom of years passed, successful NFT collections are about to become less and less common. As of now, casual and enthusiast crypto users are getting used to daily NFT drops. However, many drops amount to nothing and will likely taper off in the new year as the industry focuses on viable utility projects that push adoption and advancement in the long run.
Accessibility is Key
In that same vein, accessing and investing in NFTs will become much easier as well. Groups like Mastercard and Visa are developing simplified NFT platforms for accessibility. In fact, Mastercard has partnered with the popular crypto exchange Coinbase for its upcoming NFT platform. Once integrated, users will have no problems investing in NFTs via their Mastercard.
Interestingly, we can expect standard auctions to lose ground to NFT auctions over time as well. After all, decentralized technology makes it so auctioned items are immediately sent to the winner via smart contracts. That, and the immutable nature of decentralized platforms provides security unlike anything seen in traditional security offerings.
As NFT auctions gain more ground and additional high-net-worth individuals get involved with them, it will only be a matter of time before NFT auctions supersede anything offered by in-person auctions.
These possibilities are just a few reasons why NFTs might see new growth in 2022. While accessibility, innovative ideas, and proper regulations are vital factors, who knows what will happen over the next twelve months?
Maybe a popular new project will appear out of the blue and bring in millions of mainstream users. Governments might go all-in on NFTs, digital assets in general, or Twitter or Facebook (Meta) will release a must-have use case that can convince even the most stringent NFT naysayer. It’s impossible to predict what will happen, but that’s partly what makes the future so exciting.
