NFT Outlook in 2022

Written by EmergentX Insights team

February 17, 2022 | 1 Min

Highlights
  • New NFT use cases and partnerships will empower metaverse companies to create
    new user experiences and contents.
  • Connected metaverses are being built to allow players to move around metaverses
    while keeping their digital assets.
  • 2022 will see legal debates around NFTs and metaverse. NFTs (decentralized in
    nature) challenge the traditional ownership conception in IP laws that are territorial
    and based on physical products.

Core thesis

The metaverse is an irreversible thematic tailwind gaining traction among users and
corporations. Metaverses allow users to create a digital identity to interact in the new
gaming universe and empower corporations to reach new consumer demographics. NFTs,
which are digital representations of digital or physical objects, have moved rapidly to
become building blocks of the metaverse.

Significance and Disruptive Impacts

The still-nascent market for NFTs has massive upside. New use cases and economic
models will continue to reshape core concepts such as identity, asset ownership and
security. NFTs can drive greater engagement and align incentives for the creators and
community, increasing transparency and liquidity.

The metaverse will disrupt multiple industries – the technology is still at an early stage of
development, and more use cases in different sectors are being discovered.

Expectation for 2022

  • “Flippening” events in NFTs and Metaverse
    The onset of Covid has made in-person communication difficult and caused people
    to gravitate towards virtual experiences. When (if ever) will it reach the tipping point
    that experiences in the Metaverse will “flip” those in the real economy?
  • Battle between metaverses
    There will be a battle between crypto-native metaverses and those created by
    centralized gaming and corporate entities. With increased competition comes more
    innovation from centralized and decentralized players.
  • Partnerships and technologies will give rise to more immersive experiences
    Partnerships between metaverse companies and those of other industries will create
    new experiences and content for users via NFTs.
    Metaverses require robust infrastructure for high performance. Advancements in key
    enabling technologies – 5G, IoT, AR/VR – will come together to power the
    metaverse.
  • Community is king in NFT and metaverse
    The community will continue to play a pivotal role in helping projects grow and scale,
    particularly for the experiential side of digital assets.
  • NFT use cases and business models to grow exponentially
    Metaverse will open up more applications in shopping, health, education, music,
    entertainment and travel. 2022 will see further experimentation of new NFT use
    cases by creators and corporations. Corporations will incorporate NFTs and
    metaverse into their marketing campaign and digital strategy.
  • Interoperability of metaverses
    Connected metaverses are being built to allow players to move around
    metaverses while keeping their digital assets.
  • Regulatory debates and litigation around NFT and metaverse
    2022 will see legal debates around NFTs and metaverse. NFTs (decentralized
    in nature) challenge the traditional ownership conception in IP laws that are
    territorial and based on physical products.

EmergentX Digital Asset 2022 Outlook

Year of Consilience

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