This year, the NFTs may show themselves like never before. Analysis and forecast for 2023

Interest in NFT this year began to grow along with the rise of the entire crypto market. NFTs are increasing interest not only in Ethereum but also in many other chains. The Ethereum blockchain has always had the largest market capitalization of NFT collections.

However, a lot can change. According to analysts’ predictions, in 2023, the old-timers may be pushed out by more interesting new projects and platforms. NFTs may prove themselves in a completely new way, ceasing to be just expensive pixel art.

NFT’s successes and failures in 2022

In 2023, NFTs had a trading volume of $870 million, of which $587 million came from collectibles, according to DappRadar’s report.

In 2022

• The market value of the 81 Ethereum-based collections* was down 59.60%, from $9.3 billion at the beginning of the year to $3.7 billion at the end. Yuga Labs has established itself as a leading player in the NFT industry. The market capitalization of the NFT Yuga Labs collections is 67% of the total market value.
• Otherdeeds (-86.15%) experienced the largest decline in market value. 

• Azuki, Pudgy Penguins, and the Degen Toonz Collection were the only NFT collections launched in 2021 or early 2022 that had significant market value rises: 113.89%, 260%, and 204%, respectively.

• The NFT collections launched after the Terra Luna collapse (last spring) that were able to increase their market capitalization are The Potatoz (134.68%), Renga (211.63%), DigiDaigaku (209.88%), and God Hates NFTees (1,653.28%).
• Among the most depreciated collections is Meebits, which had a market capitalization of $110.7 million at the end of 2022 (down 96.35% from its value at the beginning of the year). Cool Cats came in second, with a market capitalization of $35.4 million at the end of 2022 (down 92.04%). In third place is NFT Clone X-x Takashi Murakami, whose market capitalization at the end of last year was $175 million (down 89.20% from the beginning of the year).

What will happen to the NFT market in 2023?

This year, NFTs will prove themselves and their usefulness by being more than just absurd pictures for fancy money. Amid the recession, Web3 is still drawing in new people, says crypto and NFT enthusiast under the nickname Daddy.

“I believe the NFT market will always be active, regardless of the price of crypto. Yes, I’ve seen significant growth in users just in the past year. The NFT & crypto market changes daily. And the amount of users will grow, so the dynamics of what people want is different. Right now, I think the focus should be onboarding new people to Web3,” he says.

Delphi Digital’s report says the NFT market could see a lot of changes this year:

• Big tech will increasingly adopt NFTs (Meta, Instagram, Reddit, and Apple), attracting hundreds of millions of users. NFTs will also integrate more and more big brands.
• Leaders change. In January, OpenSea handled about 90% of NFT trading volume. Now the trading platform has some serious competitors: LooksRare, X2Y2, Magic Eden, and Blur. Verticalized marketplaces (e.g., art, music, fashion) provide a better user experience and unique business models. Project-owned white-label marketplaces will become more prevalent.
• New NFT automated market makers (AMMs), lending, and pricing solutions (NFT-Fi). For example, there is already a beta version of NFTPerp, which is a decentralized NFT perpetual futures exchange that covers 9 collections, including Azuki, Doodles, and Bored Ape Yacht Club. The Hook is an NFT-based options protocol that allows users to buy and sell call options on NFT collections, including Otherdeeds and CryptoPunks.
• NFTs will become new social tokens because of their popularity among celebrities and sports brands.

• NFT projects will launch interchangeable tokens (e.g., APE, a coin of one of the largest NFT ecosystems, which includes the Bored Ape Yacht Club collection) as a means of value exchange within their economies. Tokens will also allow the community to expand beyond the limited range of holders of NFTs.

• “Phygital will merge the physical and digital worlds. More and more physical products will be sold with accompanying NFTs, attracting a new generation of Web3 members. 

*The 81 Ethereum NFT collections analyzed by DappRadar’s Value Estimator:

Bored Ape Kennel Club, CryptoPunks, Mutant Ape Yacht Club, Bored Ape Yacht Club, Meebits, Otherdeed for Otherside, God Hates NFTees, KILLABEARS, RENGA by DirtyRobot, DigiDaigaku, The Potatoz, Netvrk Land, DEGEN TOONZ COLLECTION, Pudgy Penguins, mfers, rektguy, Azuki, Rare Apepes, 10KTF, CryptoDickbutts S3, goblintownNFT, Tom Sachs Rocket Factory, Autoglyphs, Fluf World, Anthony Hopkins – The Eternal, CLONE X – X TAKASHI MURAKAMI, DourDarcels, Metakrew, Doodles V4, VeeFriends, Non-Fungible Soup, World of Women, Moonbirds Oddities, Bulls On The Block, CrypToadz by GREMPLIN, 0N1 Force, Adam Bomb Squad, 10KTF Gucci Grail, Pixelmon – Generation 1, The Wicked Craniums, Avastars, ALIENFRENS V2, Forgotten Runes, Lazy Lions, Moonbirds, Kaiju Kingz, DeadFellaz, Loot (for Adventurers), Wall St Bulls, Hashmasks, VeeFriends Series 2, CyberBrokers, Gutter Cat Gang, WebbLand, MutantCats, The Alien Boy, Cyberkongz VX, Invisible Friends, Animetas, NFT Worlds V2, Akutars, PUNKS Comic Special Edition, Cool Cats, Mekaverse, Cyber Kongz, Stoner Cats, Creature World NFT, Mindblowon V2, Murakami.Flowers Official, 3Landers, Anonymice, JUNGLE FREAKS BY TROSLEY, The Doge Pound, MetaHero Universe:, Generative Identities, Sneaky Vampire Syndicate, Sup Ducks, Vox Collectibles, Antonym: GENESIS, PXN: Ghost Divison, Karafuru V2, PUNKS Comic.

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