Crypto Trends 2024 Report: NFT (R)evolution

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NFTs are anticipated to be a key catalyst for Web3 integration in the year 2024, with the front-running projects expected to diverge significantly from past trends.

Throughout 2023, NFTs have undergone a renaissance of interest. We’ve observed NFT brands debuting their wares in prominent physical and virtual retail environments. The emergence of major blockchain-centric gaming ventures has been noted, alongside the entry of more established enterprises into the NFT domain. Consequently, the strategic cultivation of brands through NFTs is forecasted to be a considerable impetus for Web3 assimilation in 2024.

The forthcoming generation of victorious NFT offerings is projected to depart from the prior norm. These future products are likely to be available in greater volumes — at price points that are accessible to the average consumer, aiming for widespread market penetration. They will be geared towards generating tangible value, as opposed to speculative gains. Furthermore, a substantial number of consumers will interact with these digital assets, perhaps oblivious to the fact that they operate atop cryptocurrency infrastructure.

There has been a flurry of initiatives featuring mass-market NFTs as digital keepsakes, with entities such as Nike, Reddit, Starbucks — and even figures like the ex-President of the United States, Donald Trump, entering the fray. NFT-origin brands like Pudgy Penguins, Cool Cats, and Kitaro Studios have introduced “phygital” offerings, where a tangible item is paired with a corresponding NFT, either directly connected to the merchandise or via a redemption code at purchase. Concurrently, established names such as Ticketmaster and emergent entities like tokenproof and YellowHeart have been piloting NFTs for event admissions, memberships, and varied forms of audience engagement.

These offerings present an avenue for consumers unfamiliar with NFTs to delve into the world of digital proprietorship that this innovative technology offers. These products are often tagged with prices akin to those of standard consumer goods — event passes are priced ordinarily; phygital products are typically in line with the cost of the physical item alone.

FROM MACRO TO MICRO

While initial ventures into the NFT space demanded consumers to manage complex, self-custodial wallet solutions, these newer NFTs are often embedded within a user interface that obscures the complexity of the blockchain with a partially or wholly custodial wallet mechanism. This design choice does not impede consumers from leveraging the utility of the tokens or from incorporating them into their digital personas across social media and other digital platforms. It also doesn’t restrict their potential involvement in the wider NFT market should they opt to, with many offerings allowing for the transfer of branded NFTs into personal custody.

By rendering digital assets more attainable — both in technical simplicity and affordability — the prospective audience expands substantially, laying a robust groundwork for brand development.

This denotes that the smaller, more widely available NFT products that have been emerging are not merely for trial; they represent the forthcoming standard. The thriving nature of “open edition” creator NFTs in the early part of 2023 showcased the viability of this approach for creators. As the year unfolded, it became evident that commercial entities were also mastering this approach. Hence, the expectation is set for brands to scale up with “micro” NFTs in 2024, potentially ushering a vast new consumer base into the fold.

X-404 AND XRGB PROTOCOL

The X-404 and XRGB protocol introduces an innovative fusion of NFTs with ERC-20 liquidity through a novel smart contract mechanism. Users deposit NFTs into a dedicated smart contract and receive ERC-404 tokens, blending the distinct qualities of NFTs with fungible token liquidity. This creates a versatile asset class, easily navigable across diverse blockchain environments, from Bitcoin to EVM-compatible networks. By underpinning semi-fungible token representation within this framework, X-404 offers a decentralized solution that achieves universal interoperability, breaking down barriers between blockchains and injecting newfound liquidity into the NFT market.

SEMI-FUNGIBLE TOKENS (SFT)

SFTs can reshape several areas, such as derivatives and equities. This technology is noteworthy. While a user considers them completely fungible, the industry has a way to deal with them individually. This makes it possible to track sales, measure token movement, and create a whole new industry of big data. Although it may not happen in early 2024, this is a large segment to keep an eye on in late 2024 or early 2025.

You can get full report here.