Brief NFT Industry Outlook of 2022 by DCTDAO
NFT is not a new technology in the blockchain industry, in fact DCore blockchain, DECENT’s proprietary blockchain technology has been capable of NFT functionalities for the past 3 years. But NFTs have seen a meteoric rise in 2021, with projects like CryptoPunk by Larvalabs, Bored Ape Yacht Club and many others captivating the attention of the public and the media with celebrity endorsements, ecosystem utilities, verifiable rarity and many other unique offerings that hasn’t been seen before.
But what will happen in 2022? Will the ecosystem continue to grow, stay stagnant or decline?
We can’t predict the future but let’s take a look at figures that may give us clues on what to expect this year.
NFT for Retails
Google Trend Analysis
Keyword : NFT
It appears that google search for keyword NFT have peaked in January 2022 and interest declined over february as the general market experienced various pullbacks from negative events such as Opensea hack and unstable geopolitical issues that spooked not only cryptocurrency markets but also NFTs and nearly all markets.
Similar sentiments also can be seen on keywords such as How to Buy NFT and Buy NFT
This doesn’t necessarily proof that the market has topped, but it does show dwindling interest from the public which are categorized as ‘retail’ and retail is only a quarter of market’s participants.
The remaining participants who are also observed, based on Google search, come from wealthier countries like Singapore, etc which tend to have more purchasing power as seen below :
Therefore, although pullback of interest can be observed from the general retail investors, those who remain come from countries that have strong purchasing power.
NFT for Institution
The opposite sentiment can be seen from Institutional investors and brands. More brands are joining the NFT trends over the past few months then in 2020 and there seems to be continued interest on this going forward 2022, because brands are gaining new ways to advertise, monetize and engage in completely new ways to younger and tech savvy consumers.
This is not only exclusive to tech oriented companies, but also to brands like Mcdonald, Adidas, NBA, and more.
Jefferies, a world renown investment banking has forecasted that the NFT market will reach $80B in market cap by 2025. These spectacular numbers are largely driven by continuous waves of brands that innovate in the NFT space.
Not only companies, countries as well have been dipping their feet on NFT. South Korea to name a few, which plans to have a government agency inside the metaverse. If implemented correctly, this trend will be replicated by other countries that will follow suit in 2022 and beyond.
So despite seemingly dwindling interest in February 2022 from retailers there seems to be a window of opportunity for savvy retail investors to start getting into NFT during the time where most retail investors are pulling back while the smart money, the institutions are doubling down on NFT.
This article does not serve as investment advice and merely opinion from DCTDAO writers about the outlook of NFT in 2022.
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