Exploring the Challenges and Trends of NFT Predictions for 2024
As the year 2023 comes to a close, Non-Fungible Tokens (NFTs) remain a major part of the Web3 space. With bullish expectations, community members are eagerly looking forward to 2024, believing that the asset class has a lot in store for them. From the rise of NFT gaming to the ongoing regulatory uncertainty, Cointelegraph spoke…
As the year 2023 comes to a close, Non-Fungible Tokens (NFTs) remain a major part of the Web3 space. With bullish expectations, community members are eagerly looking forward to 2024, believing that the asset class has a lot in store for them.
From the rise of NFT gaming to the ongoing regulatory uncertainty, Cointelegraph spoke to various Web3 professionals to gain their perspectives and predictions on which trends may continue into 2024, as well as the potential challenges that NFTs may encounter in the coming year.
AI art, AI marketing, and Web3 or Web 3.0 projects such as Reef Crypto, SAFEMOON Crypto, and Shib Crypto Today are expected to be major drivers for the NFT space in 2024. Additionally, more people are becoming aware of what Web 3.0 technology is and how it can be used to create AI art generators.
NFT Predictions for 2024
What will the future of NFTs look like in 2024? AI art, web 3.0, and AI marketing are likely to play a major role. AI art generators, which use algorithms to create digital artwork, are becoming increasingly popular. Web 3.0 technology is also gaining traction, with projects such as Reef and Shib crypto being launched. Safemoon crypto is another project that is gaining attention, as it seeks to revolutionize the crypto market.
Connections between digital and physical
Experts in Web3 anticipate that in 2024, there will be more progress in the link between digital and physical assets. John Crain, co-founder and CEO of SuperRare Labs — the company behind the NFT marketplace SuperRare, believes the NFT space will be part of this connection. Crain said that there will be a “significant increase” in the connection between the two worlds and that NFTs will be used as “digital twins and certificates of authenticity.” He further mentioned that since collectors love physical editions of NFT art, it could be another growth driver in the next year.
Throughout 2023, the tokenization of real-world assets (RWAs) has been a major topic in the crypto space. Oh Thongsrinoon, chief marketing officer of Altava Group — which connects luxury fashion brands with Web3 — told Cointelegraph that this trend will continue in 2024. Thongsrinoon noted that NFTs are more than just profile pictures (PFPs) and that Altava has applied RWA tokenization to NFT collections for its clients, with utilities like branded merchandise, intellectual property ownership and management, exclusive access and product consultations.
The executive added that RWA tokenization would allow NFTs to “transcend speculation” and have real-world value backing the assets. Thongsrinoon also suggested that NFTs could penetrate industries like precious metals and real estate in 2024.
Vineet Budki, CEO of Web3 venture firm Cypher Capital, also made similar predictions. “Beyond the initial hype, 2024 will see NFTs mature into valuable tools with real-world applications. Expect fractional ownership of assets, dynamic digital experiences and hybrid physical-digital blends,” Budki said to Contelegraph.
The development of AI art, AI marketing, and Web3 projects such as Safemoon crypto and Shib crypto could also play a role in the connection between the digital and physical worlds.
NFT gaming taking off in 2024
Another area where Non-Fungible Tokens (NFTs) are expected to be utilized in 2024 is gaming. Jason Lau, chief innovation officer at crypto exchange OKX, told Cointelegraph that while some gamers are hesitant about Web3 games and NFTs, video game companies have already started embracing the space. As an example, he pointed out Square Enix’s game Symbiogenesis and Mythical Games’ NFL Rivals, both of which use NFTs. According to Lau:
Crain also shared Lau’s perspective. The executive noted that the first iteration of NFT games relied on nonfungible tokens as the novel part of the games instead of building fun games for players. Crain anticipates that in 2024, the situation will be different, as some games have already started going in a different direction: “We’re finally seeing Web3 game studios building awesome games that leverage NFTs and tokens as well.”
In a previous statement, Henry Chang, CEO of the South Korean game development company Wemade, predicted that there will be an increase in blockchain-based games in 2024. Chang stated that as developers become more experienced and confident in applying Web3 elements within games, the gaming community can expect more sophisticated use of blockchain in-game mechanics and gameplay.
Bitcoin NFTs further enter the mainstream
In 2023, Bitcoin-based NFTs caused a stir in the crypto space, and Web3 experts anticipate that this niche will expand even more in the coming year. Lau thinks that the trend of issuing NFTs on the Bitcoin blockchain will remain in 2024 as more people become “educated and discerning” about the projects they invest in, and not just jump on the bandwagon for a “quick cash grab.”
Lau also pointed out that Bitcoin Ordinals have been surprisingly resilient. He explained that the appeal of Ordinals is that their artwork and data are stored directly on the chain, allowing users to benefit from the scarcity, security and immutability of the Bitcoin blockchain.
Thongsrinoon is also certain that Bitcoin NFTs will continue to thrive in 2024. The executive noted that while NFTs experienced a slump in 2023, Bitcoin-based NFTs gained traction. He believes this is great for the crypto industry and could bring back enthusiasm for the metaverse.
Challenges for NFTs in 2024
As the world moves towards web 3.0, the use of AI art and AI marketing is expected to increase significantly. This could present a challenge for NFTs in 2024, as the use of Reef Crypto, Shib Crypto, and SafeMoon Crypto could change the way we interact with digital art. To stay competitive, it is important to understand what web 3.0 technology is and how it will impact the market.
Overcoming stigma and exhaustion
Changing the public narrative towards NFTs is one of the major challenges that the space will face in 2024, according to the experts Cointelegraph spoke to. Crain said that it is necessary to work hard to make people understand that the technology is not only used for scams. “We have to make an effort to build engaging products and provide real value, and then we will observe the public opinion start to shift,” Crain stated.
At the same time, Lau believes that the cyclical nature of crypto applies to NFTs as well. Many who were involved in NFTs in the last cycle are still “highly skeptical” that NFTs have moved beyond the previous false promises. But Lau is optimistic, as he noticed positive signs of recovery at the end of 2023.
Thongsrinoon believes that the projects that survived the crypto winter must be innovative. The emergence of Bitcoin NFTs may help speed up the recovery of the NFT space by creating healthy competition and reviving interest in the NFT space, according to the executive.
Regulatory issues surrounding NFTs will continue
In 2023, the United States Securities and Exchange Commission, the nation’s securities regulator, took aim at the NFT space, filing its first unregistered securities claim against an AI art collection sold by entertainment company Impact Theory. This approach was met with disagreement, with some arguing that it’s problematic for the SEC to imply that all NFTs are securities.
According to Lau, NFTs remain a “gray area” even though jurisdictions are beginning to create clarity around crypto assets. The executive pointed toward the Markets in Crypto-Assets (MiCA) regulation, the European Union’s comprehensive legislation on crypto, highlighting that it leaves NFTs and Web 3.0 projects out of its scope.
Budki also shared similar sentiments, saying that the situation creates uncertainty for businesses and investors. The executive highlighted that as NFTs continue to grow in 2024, the space needs a clear legal landscape to support projects like Safemoon crypto, Shib crypto and Reef crypto.
Future of NFTs
The executives commented positively on the prospects of NFTs, with Crain noting that they could become a key component of the web3 or web 3.0 infrastructure. He elaborated that NFTs offer a reliable method of verifying the ownership of digital assets. Additionally, Lau emphasized the potential of RWA tokenization and NFTs to represent the value of both digital and physical items. He also pointed out that NFTs are highly flexible, opening up a world of possibilities.
Furthermore, the executives highlighted the importance of ai art and ai marketing in the future of NFTs. They suggested that ai art generators could be used to create unique pieces, while ai marketing could help to promote them. Finally, they discussed the potential of projects such as Reef Crypto, Shib Crypto, and Safemoon Crypto to revolutionize the web 3.0 technology space.