The abbreviation for non-fungible token, NFT, was named the Collins Dictionary word of the year in 2021. It is safe to say, the rise of NFT’s over the past couple years has been nothing short of exponential. With 2023 just around the corner, it is the time to start thinking about what is to come from different industries in the new year. As a business owner or investor, you might be looking for various markets to start investing in. It might be the perfect time to start learning about NFT’s.
At Saw.com we do more than just help you buy a domain or sell a domain! We discuss business branding, portfolio management, business trends and so much more. So, lets discuss. Should you buy NFT’s in 2023? Are they safe to buy? Why should you invest in NFT’s?
Without further ado, here is what we are expecting from NFT’s in 2023.
What are NFT’s?
Before we dive in, let’s do a recap of NFT’s.
First, NFT’s are not to be confused with a fungible token, like Bitcoin. Bitcoin is a digital currency, without a central bank or single administrator. It can be sent from user to user through the bitcoin network without the need for an intermediary. Furthermore, there is no difference between two Bitcoins, they are like two United States one dollar bills. Interchangeable, physically identical and worth the same amount.
An NFT, or Non-Fungible Token, is a unique digital asset part of the Ethereum blockchain, an open sourced blockchain. They represent real life objects like art, music, videos and in-game objects. Some examples of NFT’s include: unique digital artwork, a video, gifs, an essay, digital collectible, a video game item, designer sneakers, an online ticket for an event and a domain name. They are bought and sold online, and many times purchased using cryptocurrency.
NFT’s in 2021
2021 was a huge year for the NFT industry. A few notable moments in the NFT world this past year:
1. The most expensive NFT to date, a digital collage by artist Mike Winkelmann, also known as Beeple, sold for $69.3 million.
2. Total sales volume hit more than $12 billion.
3. In the past week alone, sales of NFTs hit $292 million, according to data from NonFungible.com.
4. Crypto.com got the naming rights deal for The Staples Center. Located in Los Angeles, California it is home to the Lakers, Clippers, Kings and Sparks teams.
5. Also in the past week, Bored Ape became the top NFT collection with a seven day sales volume of $52.2 million and average sale of $75,000.
What Can We Expect in 2023?
NFT’s caused quite the craze in 2021 – but what can we expect from them in 2023? We know this much, NFT’s are no fad. They have been a game changer and they are not going away anytime soon.
1. More industries will join the NFT market
Many industries are beginning to enter the NFT market, including the fashion, gaming and sports industries. Last week, Deloitte predicted that sports-related NFT’s will account for more than $2 billion in NFT transactions in 2023. Additionally, Deloitte projects up to five million sports fans getting into NFT’s by the end of the year. Considering the success of NBA Top Shot this past year, this sounds promising.
“In a lot of ways, NFTs are just the beginnings of what can be done with both crypto and blockchain technologies. As organizations start to embrace those technologies, what else they do with it will be very interesting”Pete Giorgio, Deloitte U.S. sports practice leader
2. NFT’s and other crypto will more accepted
Besides the sports industry, more and more industries are getting into NFT’s and other cryptocurrencies. Therefore, we will most likely see more companies in the next year accepting crypto as a form of payment. Having the option to pay with crypto could be more of the norm.
3. Rise of NFT domains
In the next year we might also see an increase in NFT related domains. Earlier this year, the blockchain domain sale record was broken – ‘win.crypto’ selling for $100,000.
This includes “.eth” (Ethereum) domains and more. NFT domains are becoming widely popular as a way to sign into apps, transact with cryptocurrency, and access Web3. NFT domains also work with the traditional domain name system (DNS) like ‘.com’, ‘.org’, ‘.io’, etc.
Domain names are how millions of Internet users find content and businesses online. Relevant domain names related to the NFT market will no doubt see a rise in 2023.
Interested in Buying a NFT Domain?
A domain name is essentially your street address, but online. It is how new and returning customers will find you online. The easier it is to find you, the more likely customers are to return time and time again to your site.
Our team of domain brokers have years of experience in the industry. Our domain brokers are experts in domain acquisition, appraisal, branding, brand protection, portfolio management services and more. We pride ourselves in our transparency and passion to help you reach your goals. Additionally, we handle the nitty-gritty work for you.
Our mission is to help you be seen online. If you are interested in speaking with an expert from our domain brokerage service about buying a domain, please contact us for a free consultation.