5 NFT Market Trends of 2022
2020 was the year where crypto earned national recognition. As prices skyrocketed, millions became interested in cryptocurrency for the first time.
But in 2021, the NFT world outshined cryptocurrency by far. NFTs utilize the same technology like cryptocurrency, and there is much overlap between the two industries. But the NFT market is still in a class of its own.
In 2022, we can expect to see NFTs take center stage once more, as the momentum continues and even increases. New blockchains entering the arena, countless new creators, and brand-new use cases for NFTs are on the horizon.
What trends should you be watching for this year? Here are five important trends for 2022.
1. More Celebrity Attention
So what is an NFT, and what makes an NFT valuable? There are many ways you can answer that question.
In general, NFTs are collectible works of digital art. Value is determined by the market. When a project has limited quantity and high demand, value skyrockets.
In recent months, celebrities have been buying NFTs left and right, and this is causing the price of some NFT projects to soar. Expect to see more celebrity engagement this year on up-and-coming projects.
2. PFPs are Still King of the NFT Market
By and large, the most in-demand type of NFTs is personal profile pictures (PFPs). The NFT community loves collecting these and using them as their profile picture on the internet. The trend really began in 2021 and is likely to surge this year.
3. NFT Staking
If you own a piece of fine art, the only thing you can do is hang it up or sell it. But if you own an NFT, there are other things you can do with your digital art.
Staking NFTs, helping you to earn interest in exchange for holding them over time, will become much more common. So holding an NFT without selling it could prove to be quite profitable this year.
4. More Blockchains, More Marketplaces
The NFT industry is dominated by Ethereum. And that’s not a bad thing, as the network is poised to become much more efficient in 2022 and beyond.
But other blockchains are looking to get in on the NFT action, such as Solana, Flow, and even Fantom. To buy NFTs using these other networks, you’ll need to use the appropriate cryptocurrency.
So if you’re buying Action, the Fantom-based marketplace, you’ll want to check the current Fantom price before looking at NFTs for sale.
5. Looks Rare vs OpenSea
Even with new blockchains entering the NFT space, Ethereum is still on top. Most NFT projects are built on the Ethereum network, and this trend is likely to continue for some time.
Wondering how to buy an NFT or how to sell an NFT? For the past few years, the trading platform of choice has been OpenSea, which acts like eBay, but for NFTs.
But as a centralized platform, with a few too many problems, OpenSea is losing the fight for the Ethereum throne.
Enter LooksRare. This new marketplace actually rewards users with the $LOOKS token every time they buy and sell an NFT on the platform. So while OpenSea is charging users for transactions, LooksRare is rewarding users for it.
A Brand New World
The NFT market is still so new. There’s no such thing as “normal” because every day the industry experiences something it hasn’t seen before.
This is the most exciting time to jump into NFTs. And who knows, you might buy something that shoots up in value over the next few years.
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