world Non-Fungible Tokens (NFT) Things change quickly. As technology and creativity combine, new NFT trends are emerging. These trends will shape the future of digital art in 2024 and 2025.
focus:
- according to Crypto Grand SlamCurrently, total NFT sales exceed $65 billion, with Ethereum, Solana, and Bitcoin being the top blockchains for NFT traders.
- The most noteworthy NFT trends include the rise of utility NFTs, tokenization of real-world assets, NFTs in the music industry, hybrid NFTs, Bitcoin NFTs, and the gaming expansion of digital collectibles.
- The global non-fungible token (NFT) market is expected to reach US$152.54 billion by 2030, with a compound annual growth rate of 34.2% from 2024 to 2030 (source: VMR report).
Hot NFT trends in 2024
1. Practical NFT
In the early days, NFTs were mainly used for digital art and collectibles. However, this trend is shifting to other emerging NFT areas, such as utility NFTs. These tokens are more than just owning digital assets; they provide additional functionality and benefits. For example, utility NFTs can provide access to exclusive content, events, or communities. They can also represent ownership of real-world assets, such as real estate or vehicles.
Demand for utility NFTs continues to grow as they provide more value to holders. In 2024 and 2025, we expect to see more projects integrating practical functionality into their NFTs. This trend may appeal to a wider audience, including those interested in practical applications of NFTs beyond art and collectibles.
For example, Bored Ape Yacht Club ($BAYC) Bringing tangible benefits through their NFTs. For example, they organize Ape Day, an annual event exclusive to NFT holders. Attendees can gather to display their collections and enjoy activities such as live music, auctions and games. This adds additional value to owning a $BAYC NFT, making it more than just a digital asset.
Activities of BAYC/MAYC holders. Source: Ape Day
2. Real World Asset (RWA) NFT
Tokenization of real-world assets is an increasingly popular trend. NFTs can represent ownership of physical items such as real estate, art, and even luxury goods. This tokenization provides a way to divide ownership, making it easier for people to invest in high-value assets. You can also call it a fractional NFT.
For example, an NFT could represent a share of a piece of real estate, allowing multiple investors to own a portion of the property. This approach makes investing that was previously out of reach for many people much more accessible. In 2024 and 2025, we expect to see more real-world assets being tokenized, opening up new investment opportunities.
according to a ReportBy 2030, the tokenization of real-world assets or the tokenization of global illiquid assets will be a $16T business opportunity.
3. Mixed NFT
Hybrid NFTs blend digital assets with real-world items. For example, owning a digital artwork NFT may also provide you with a physical print. This combination makes NFTs more attractive and valuable. It bridges the gap between the digital and physical worlds.
A famous example is Nike’s Cryptokicks. These are digital shoes that come with the physical shoes. Cryptokicks generated over $10 million in sales in its first month. This shows strong demand for hybrid NFTs.
RTFKT x Nike Dunk Genesis CRYPTOKICKS: Source: OpenSea
The hybrid NFT trend is likely to grow in the coming years. As more brands and creators explore this trend, we can expect more innovative products. Hybrid NFTs could become a standard in industries ranging from fashion to entertainment.
4. NFT in the music industry
The music industry is another area where NFTs are having a major impact. Artists can tokenize their music, offering exclusive tracks, albums or concert tickets in the form of NFTs. This approach provides artists with a new revenue stream and gives fans a unique way to support their favorite musicians.
NFTs in the music industry can also include royalties. For example, NFTs can be programmed to give a percentage of future sales back to the original artist, thus ensuring ongoing revenue. This trend will continue to grow as more musicians and record labels explore the potential of NFTs, changing the way music is distributed and monetized.
according to some estimates, artists only get about 4 cents for each song played on Spotify. This means that in order for an artist to earn $4,000, he would need up to 1 million live streams. so, Music NFT Might be a more profitable alternative.
Types of music NFTs. Source: Chainlink
5. Game NFT expansion
The gaming industry has always been a place of innovation, and NFTs are no exception. NFT games are expected to explode in 2024 and 2025, becoming a mature phenomenon.
Here’s why: NFT-based games allow players to actually own in-game items, such as weapons, skins, or virtual land. This ownership opens the door to a whole new level of engagement – players can trade, sell and even rent their in-game assets, creating a thriving digital economy within the game itself.
As more game developers adopt this model, we expect NFT-based games to increase significantly and the market for in-game NFTs to continue to grow. For example, sales of Axie Infinity have exceeded $4 billion, showing the potential of NFTs in the gaming field.
Axie Infinity Game Market and NFT: Source: Axie Infinity
6. Bitcoin NFT
Mining NFTs on Bitcoin has always been more difficult compared to blockchains like Ethereum. The reason for this difficulty is that Bitcoin’s smart contract functionality is limited and it lacks a standard token format for NFTs, such as Ethereum’s ERC-721.
Recently, Bitcoin NFTs have received a lot of attention. Interest and popularity grew with the January 2023 launch of the Ordinals protocol, which allows NFTs to be minted directly on the Bitcoin blockchain.
according to Crypto Grand SlamCurrently, the Bitcoin blockchain ranks second only to Ethereum in NFT transaction volume and sales. This trend is expanding the NFT market beyond Ethereum, giving creators and collectors more options.
Bitcoin NFT example. Source: rarepepes.com
final thoughts
The future of NFTs is bright, and many NFT trends will shape the landscape of 2024 and 2025. By understanding these top NFT trends, you can better understand the potential of digital art and how they are impacting various industries.
Whether you’re an artist, a gamer, a music lover, or an investor, the world of NFTs has something to offer everyone. Looking to the future, it is clear that NFTs will play an important role in the digital economy, bringing new investment opportunities and changing the way we create, interact and transact in the digital world.
