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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