The hype is over and the heat is ON. As the NFT industry navigates its way through a bear market, it's clear that not all NFT projects will survive. Some will crumble under the pressure, while others will rise to the challenge and emerge stronger than ever.
But, change isn't bad, folks! The industry can up its game and NFT projects can evolve to increase their chances of success in 2023 and beyond. In fact, we believe that - by making NFTs useful and valuable - the industry has the potential to skyrocket even further in the year ahead.
To do so, though, creators have got to be bold, innovative, and take notice of what their communities want. Here's what we're expecting to see in the NFT space in the coming year, and some of the awesome folk who we think are going to win big in 2023:
1. Utilities, utilities, utilities.
Utilities are what turn an NFT from a pretty picture (just a JPEG) into something that has real value. They give NFTs a purpose beyond just being a collectible, and can make them more appealing and valuable to potential buyers.
Examples of NFT utilities could include physical rewards like merch, digital goodies such as wearables or new features for a game, access to exclusive events or meet-ups (both digital and in real life), or even the ability to influence the development of a project. Want some inspo? Check out our rundown of the best utilities to build in 2023.
Are you an NFT creator? By adding utilities to your NFTs, you can keep your holders engaged and invested in your project, and encourage them to hold onto their NFTs rather than selling them off too early. And if you wanna be really clever, you’ll harness rules-based utilities - rewarding members of your community who own several of your digital assets or who hold onto them for a certain amount of time - combatting paper hands and encouraging loyalty and stickiness. There’s a whole blog on rules-based utilities here in fact. We know, we’re good to you. Check it out.
2. A changing paradigm - Community-Led Utilities
In the fast-changing world of NFT utilities, you don't have to be a big player with a huge collection to get in on the action. In fact, you don’t need your own collection at all.
If you're in any way creative or have a special talent, you can use platforms like Tropee to build utilities that target existing communities. Say you’re an artist and you’ve got some work you wanna showcase. Why not build a utility where members of an existing NFT community (say, BAYC holders), get exclusive access to your creations. It’s a brand new world where everyone benefits: you get to target existing engaged communities with your work (woohoo), BAYC holders get something compelling and exciting - and BAYC creators get folk wanting to buy more tokens, keen to get their hands on your utility.
In fact, community power is something we’re banking on at Tropee (you should know by now that with Tropee, ANYONE can build utilities for ANY COLLECTION). We totally believe in the amazing, creative communities which have sprung up around collections. NFT holders know that people are better together. And it’s great to see.
3. The other stuff
So utilities are going to be the big news of 2023. And community-led utilities are 100 percent the future - helping the NFT market not only survive, but thrive in the year ahead. Take our word for it.
But what about the other stuff? What else is new in our world? First thing’s first, interoperability will be a watchword for the year ahead.
For NFTs to reach their full potential and become seriously valuable, they have to be able to work seamlessly with other blockchain platforms and apps. We expect to see more efforts to standardize and integrate NFTs with other systems, which will create new use cases and opportunities for growth.
And of course, the industry’s not immune to regulation. We could see increased compliance requirements or guidelines for NFT projects in the year ahead. It'll be important for NFT projects to stay on top of any regulatory developments and make sure they're following the rules.
So there you have it, folks - the key to surviving in the ever-evolving world of NFTs. By focusing on utilities and community-led initiatives, NFT projects can set themselves up for success in 2023 and beyond.
Our advice to creators - don't be a one-trick pony - get creative and think about how you can add value to your NFTs and keep your holders engaged. And remember, it's not all about the size of your collection - even the smallest of projects can make a big impact with the right approach.
Now let's go out there and make some waves!