As the curtains close on 2023, nonfungible tokens (NFTs) continue to play a significant role in the Web3 space. Members of the community are eagerly looking ahead to 2024, believing that there is a lot in store for this asset class.
To gain insights into the future of NFTs, Cointelegraph spoke with various professionals in the Web3 industry. They shared their perspectives and predictions on the trends that may continue into 2024, as well as the challenges that NFTs may face in the coming year.
Predictions for NFTs in 2024
1. Connections between digital and physical: Web3 professionals anticipate further development in the connection between digital and physical assets in 2024. John Crain, the co-founder and CEO of SuperRare Labs, believes that NFTs will serve as “digital twins and certificates of authenticity,” playing a significant role in this intersection. Crain also predicts that physical editions of NFT art will be a growth driver in the next year.
2. Tokenization of real-world assets (RWAs): The tokenization of real-world assets has been a major topic of discussion in the crypto space throughout 2023. Oh Thongsrinoon, the chief marketing officer of Altava Group, expects this trend to continue in 2024. Thongsrinoon emphasizes that NFTs have utilities beyond just being profile pictures (PFPs). Altava has already applied RWA tokenization to NFT collections for its clients, offering branded merchandise, intellectual property ownership and management, exclusive access, and product consultations. Thongsrinoon believes that NFTs will transcend speculation and gain real-world value in industries like precious metals and real estate.
3. NFT gaming taking off: NFTs are expected to play a significant role in the gaming industry in 2024. Jason Lau, the chief innovation officer at OKX, acknowledges that some gamers are hesitant about Web3 games and NFTs. However, Lau points out that video game companies like Square Enix and Mythical Games have already incorporated NFTs into their games. Lau expects 2024 to be different, with Web3 game studios building exciting games that leverage NFTs and tokens.
4. Bitcoin NFTs entering the mainstream: The trend of placing NFTs on the Bitcoin network is expected to continue in 2024. Educators and participants are becoming more knowledgeable about Bitcoin-based NFTs, leading to their increased adoption. The art and data stored directly on-chain make Bitcoin NFTs appealing due to their scarcity, security, and immutability.
Challenges for NFTs in 2024
1. Overcoming stigma and exhaustion: Changing the public perception of NFTs is one of the biggest challenges in 2024. NFT projects need to work hard to prove that they go beyond scams and provide real value. By building engaging products and creating real value, the public perception of NFTs can gradually shift.
2. Regulatory issues: Regulatory concerns surrounding NFTs will continue in 2024. The SEC’s actions against an NFT collection sold by Impact Theory raised questions about the classification of NFTs as securities. Jurisdictions are beginning to create clarity around crypto assets, but NFTs remain a “gray area.” The space requires a clear legal landscape to provide certainty for businesses and investors.
The Future of NFTs
The executives expressed bullish opinions on the future of NFTs. Crain believes that NFTs will become standard infrastructure for the internet, providing a mechanism for provenance of digital content. Lau sees RWA tokenization and NFTs as representations of what humans find valuable in both the digital and physical space. He describes NFTs as a blank canvas that can adapt and capture an endless range of possibilities.
In conclusion, NFTs are expected to continue their growth and development in 2024, with increased connections between digital and physical assets, advancements in NFT gaming, and the mainstream adoption of Bitcoin-based NFTs. However, challenges remain, including overcoming public stigma and regulatory uncertainties. Despite these challenges, the professionals remain bullish on the future of NFTs, envisioning them as a transformative technology with vast potential.