Amid the daily chaos of NFTs, it can be hard to identify the direction in which the space is going. NFT trends seem to appear and fade away quicker than the weather changes.
Now, Tailor Insight, a market research institute based in Hong Kong, has released a report on the hottest NFT trends in the art space. While these trends could change overnight, it is interesting to delve into the findings of an official research institute. The four main trends in their report are outlined below.
Fractionalized NFT Art
Fractionalizing NFTs is when the ownership of an NFT is broken down into smaller parts. While the fractionalization of NFTs was quite prominent in 2021, for example with Doge memes, Tailor Insight goes a step further and speculates that fractionalization of real-world artworks represented as NFTs might be a trend in the near future. One project that aims to make this possible is Hype. Fractionalization may also open up the way to shared real estate ownership on the blockchain.
Digital Art Collectibles
One of the most innovative aspects of NFTs is their ability to give digital art scarcity and proof of ownership. It offers a new medium that artists can use to create and sell their art, and through the use of smart contracts, also receive royalty payments. Of the four NFT trends identified by Tailor Insight, this by far has already been the most prominent use case of NFTs.
As coined by Jace Kay, avatar casting refers to the process of renting out your NFT to brands, such as in music videos or advertisements, in return for payment. Services such as AvaCast are working towards offering these opportunities. An example is the Bored Ape Yacht Club NFT shown below in the eToro SuperBowl ad.
Much like we recognize celebrities on social media, recognizing Twitter personalities from their NFT profile pictures has become easy. A step further is the rise of personalities and celebrities known only by their NFT avatars, whether that be static profile pictures or rigged face-tracked avatars. This could be a musician who only releases music and performs digital concerts as their NFT. Virtual artists exist already, such as Teflon Sega, and while they have released NFTs, they may in the future decide to create or buy an existing NFT to use exclusively as their persona.
The 4 NFT trends
NFT fractionalization and digital art collectibles were both major trends last year, but avatar casting and personality NFTs have yet to see the light of day. While Tailor Insight pointed out these four current and potential trends, the NFT space has far more trends and innovations to offer, such as virtual land and countless others.
Keep up-to-date on the latest developments in the NFT space here at Exodus Crypto News and Insights, or buy and sell Solana NFTs from inside the safety of the Exodus app.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.