Performaroo

Metaverse

5 NFT Trends For 2022 - Beeple

5 NFT Trends For 2022

Did you know that NFT was the word of the year for 2021? That alone shows that we can expect a rip-roaring year in 2022 for NFT-related projects. Projects raked in the masses, established huge communities and made decent revenue at the same time.

There were also a few that reiterated the darker side of the hottest trend since Bitcoin by creating hollow projects with little to no utility and even going as far as creating deliberate rug-pulls. 2022 will more than likely be the year that NFTs and the long-term viability of the concept gets realized with mass-adoption and increasing utility.

We’ve scoured the web, liaised with industry professionals and formed our own ideas around what the year has in store for Non-Fungible Tokens:

  • Mainstream NFT adoption
  • Charities benefit
  • Revival of the art industry
  • Transformation of P2E gaming
  • Multi-chain marketplaces


Mainstream NFT Adoption

NFTs have already kicked off with a bang in 2022 and there’s no doubt the trend will continue for the foreseeable future. But what will it all come to? How will the majority that are online realize the true value of this digital token?

Charities to benefit from NFTs

Charities are now exploring the potential of NFTs – with the main benefit being the decreased overhead costs due to the decentralized manner in which they would raise funds.

Smart contracts make donating to a charity or fundraising that much easier – you’re able to automatically assign a split for every transaction. One of the major flaws of charities (pre-blockchain and NFTs) is that there was always a doubt that the funds were going to the right place – now with transparent, publicly traceable data everything’s out in the open.

Another revenue stream could be tokenized video-plays – where royalties will automatically be paid out every time the video is played or shared.

Revival of the art industry

NFTs have given artists a renewed sense of hope – and reaffirmed what Bitcoin’s whitepaper envisioned for the industry – true peer-to-peer transfers. Artists are able to sell directly to their fans with zero interference or splits by a middle man.

Fractionalized NFTs also allow artists to involve their fans in the process of a project and allow them to become part of the future success. Artists are also now able to benefit perpetually from future sales of their NFTs through smart contracts.

NFTs aren’t just for the intangible assets – they can also be used to tokenize ownership of tangible assets too – such as Beeples physical artwork that was accompanied by the NFT (which sold for $29 million in November 2021).

Social Perks & Subscription Models

With NFTs offering utility to HODlers, new types of subscription models and social perks could be established in the coming months as adoption increases.

Time Magazine is leading the way here by offering NFTs from 40 distinct artists and makes the NFT owner a community member. TimePieces is basically an alternative to the usual digital subscription model, unlocking all content for the NFT holder and giving them access to exclusive experiences and events.

Bored Ape Yacht Club (BAYC) offer social perks to their holders. BAYC NFTs essentially give holders exclusive club membership to the Yacht Club – a social club in the Metaverse.

Multi-chain Marketplaces

Right now the largest NFT Marketplace, OpenSea, currently only supports major chains Ethereum and Polygon – with Polygon being it’s “gas-free” marketplace.

However, with Solana and the like gaining popularity on their native chains coupled with the exorbitant gas fees on ETH and the difficulty to bridge MATIC (Polygon), we could potentially see the likes of OpenSea opening up to allow Fantom and Solana onto their marketplace.

Whether or not this leads to a monopoly (which is what Web3 is trying to get away from) is yet to be determined.

———-

The rise of NFTs and them slowly proving their value (utility) could lead to a big year for those that are either active in the space or considering entering it.

NFTs are just one of the building blocks of the emerging Metaverse and investors and creators alike are trying to put their stamp on the market and potentially become the Jeff Bezos or Bill Gates of Web3.

Web3 Trends for 2022

Web3 Trends for 2022

2021 will undoubtedly go down as the year of the NFT. We were also introduced to a plethora of weird and wonderful projects in the Metaverse & Web3 space. The world we know was re-imagined and a change was set in motion by visionaries, architects and venture capitalists. 

DAOs (Decentralised Autonomous Organizations), NFTs, and dApps (Decentralised Apps) laid the groundwork for what’s to come in the Metaverse. Even brands like Facebook, Adidas, Nike, and GUCCI entered into the space with a bang.

But we’re now in 2022 and it’s beginning to head up with VCs and developers dubbing the year as the “make it or break it” year for Web3. 

The year hasn’t disappointed one bit. With OpenSea announcing a monster $13 billion valuations, NFT sales skyrocketing, and brands showcasing their Metaverse.

There are a number of trends that could set the tone for the year to come when it comes to Web3 and the Metaverse. These include scalability of new L1 chains, improvements to bridging tools, low-code/no-code platforms, community, brand involvement, and Web2 giants waking up and trying to enter the Web3 space to name a few. 

L1 Chains Showing Growth

Ethereum is currently the go-to chain for new Web3 projects and that will more than likely lead to increased scalability challenges.

However, with Eth2 supposedly on the horizon and a few L2 rollouts that could be mitigated. Other L1 chains are now starting to show steady growth and adoption within the community – and we could even see new L1 chains emerge with a specific focus on a niche like social media or gaming. 

Bridging improvements

We’re all beginning to grow tired of the speed and difficulty of current bridges. 2022 could potentially see the improvements we’ve all been waiting for when it comes to cross-L1 and L1-L2 bridges as well as seeing some new developments in the overall usability of bridges. 

Low-code or No-code platforms

If Web3 has become known for one thing it’s that projects are really difficult and expensive to launch if you have zero or little coding knowledge.

That will all change (and it has already begun changing). Platforms like Moralis and ThirdWeb have taken the complexities to mind and built solutions that are easy to use, provide testing areas and allow users to deploy their own NFT projects, marketplaces, DAOs and even coins with ease. 

NFT Communities

Community is and will always be the backbone of our society. With Web3 on the rise and NFT communities growing by the day, we could see a significant contest between Web3 and Web2. Creator & fan tokens will be in the foreground and NFTs will ultimately become the next evolution of a user’s identity and “passport” into the metaverse. 

Users will start coming together in communities of all sizes based on the types of NFTs they own. We’ve already seen this with blue-chip projects like Bored Ape Yacht Club. User-generated and run metaverses will be the future of social networking and will potentially start to threaten the ad-driven centralized versions we have today. 

Brands in the Metaverse

Brands are beginning to realise that NFTs are a great way to market and establish a deep sense of brand loyalty. NFT collectibles have already been released by brands such as Coca-Cola, Campbell’s, Dolce & Gabbana, and Charmin whereas brands like Adidas and NIKE have gone all-in.

Adidas announced a strategic collaboration project with Bored Ape Yacht Club and Nike created their own sports complex in the Metaverse. Well-known gaming brand ATARI has also swooped in and grabbed tons of land in Sandbox. 

2022 will see the rise of brands using NFTs to incentivise HODLers and loyalists. The space will essentially become the new Instagram where brands become NFT Native.

Celebrities (being brands themselves) have already jumped in the bandwagon of major NFT projects (Steven Bartlett and Eminem announced they’ve been “Ape’d” by BAYC) but we expect to see a steady rise with more celebrities partnering with NFT projects or even creating their own. 

Web2 companies transitioning to Web3

Everyone saw the huge announcement with Facebook officially rebranding to Meta – positioning themselves for what’s to come. Microsoft also recently announced their record-breaking deal to acquire gaming heavyweight ActiVISION Blizzard which will help them in the P2E and other gaming areas of the Metaverse. 

2022 should see the rise of brands slowly lay their claim to parts of the Metaverse and dip their toes. It won’t be the scale of Facebook however, as some may just create closed network versions or adaptations of the Metaverse catered to their market. 

DAO 2.0 on the cards?

DAO has been one of the buzzwords for 2021 into 2022 but this year we could see them becoming more mainstream and accepted. More people will join DAOs and the concept could change the way payroll, employment, salaries and coordinating activities on a large scale is done. Tools will also begin to emerge to help with the transition to a DAO-central world to help execution. 

—————

Web3 and the Metaverse will be the talk of the town this year both for individuals and organisations of all sizes. If you’d like to dive deeper into forecasts and interesting projects be sure to check out our other blog pieces and leave your comments below. 

Marketing in the Metaverse

Marketing in The Metaverse

Digital marketing has been progressively building up over the last decade or so, with the likes of Facebook, LinkedIn, Google, TikTok, Twitter, and Instagram stealing the show.

However, the metaverse is a completely different ballgame. There are a number of sub-niches that open themselves to different products, marketing options, and consumer groups.

As we’ve seen with all major breakthroughs in new “waves” of marketing, the ones that come out on top are the ones that take the time to understand the space, the consumer, and corresponding opportunities that come with it. And this will be no different for the Metaverse

The “metaverse” is really only fully understood by a few and currently exists mainly as 3D gaming platforms, VR worlds, NFTs, and AR experiences with some big brands taking huge bets and going all-in. These include the likes of Nike, GUCCI, Adidas, Disney, and more recently Microsoft. 

Why is the Metaverse expected to flip our lives in a complete 180 though? In short – it will change the way people work, create, socialize, shop and communicate with one another.

But before we dive into the expected changes, let’s take a detour into why the metaverse is currently a viable marketing option for brands. Due to the space being new and relatively unexplored until recently, campaigns are being run at a very cheap rate which means it’s a lucrative option to reach prospective millennial and GenZ consumers. 

It also doesn’t limit campaigns to the laws of physics – spaces are essentially liquid and can be adapted at the drop of a hat. 

When it comes to digital marketing specifically, there are a few notable changes we can expect when it comes to the Metaverse:

  • Experiences & Sensory Advertising
  • Customer Journey
  • Increasing influencer involvement
  • Inclusivity, Diversity & Representation
  • Community & Expectation Management


Experiences and Sensory Advertising

Today’s consumers are growing increasingly indifferent to traditional forms of advertising with over 80% of smartphone users skipping ads. With current ads only appealing to 2 of the 5 senses, we could begin to see an increase in haptic technology to engage with consumers and make the brand stand out from the crowd. This will ultimately simulate a social presence to a seemingly impersonal technology exchange. 

When it comes to experiences on the other hand, consumers are now craving and lusting for rich, interactive, immersive experiences. They wish to play an active role in their favorite brand(s) and to have their say. Que the metaverse – a world built on just that – EXPERIENCES. You don’t merely watch or view but instead you take it all in and your presence helps to mold it. 

The metaverse will replace flat (2D) exchanges of the current Web with 3D (and in some cases 4D) experiences that feel more and more like real life. Brands are already arriving at the gates of the Metaverse due to limitless capabilities and experiences open to them. 

Brands like H&M, Nike, and Adidas are already putting their stamp on how they see the Metaverse playing out with virtual shopping centers, sports complexes, and even collaborations with leading NFT PFP projects

The whole funnel (Customer Journey)

Currently search & social are appealing to the bottom and top of the funnel but neither is winning at both. Search is great for identifying potential customers towards the bottom of the funnel and who are already showing intent, whereas social has the potential to shape perceptions and raise awareness. Social commerce has however changed that slightly. 

The Metaverse on the other hand can tackle both in a streamlined manner. Brands will be able to reach new audiences in new ways while at the same time affording them the option to learn more and eventually make a purchase. Brands like VANS are already creating seamless funnel experiences for their intended audience within the Metaverse. 

Platforms like Roblox and Fortnite will continue to play a major role in assisting brands. 

Influencer Involvement 

Although there are only around 150 virtual influencers, we could expect this number to grow exponentially in the future as the Metaverse expands.

Yoox, an online luxury discount store, launched their influencer Daisy back in 2018 and since then she’s featured in a number of high-profile brand campaigns including the likes of Calvin Klein and Tommy Hilfiger.

On the flip side, brands are also using real people for their avatars – in other words, the “person” is representing the brand in a more immersive way. Dior and Burberry have both made inroads into this with

Dior created a digital doppelganger of Chinese actress Angelababy to attend their pre-fall show in Shanghai, whilst Naomi Campbell and Kendall Jenner monograms were starred in Burberry’s TB Summer collection. 

There’s no doubt that with the increasing possibilities within the Metaverse brands and influencers will work even closer together and the latter becoming even more immersed in the brand’s overall identity. 

Inclusivity, Diversity, and Representation

Consumers are putting more and more pressure on brands to promote diversity and inclusion in their online advertising. A survey from Meta found that over 50% of consumers felt as though they weren’t fully represented in online ads. 

The Metaverse allows brands (and agencies) to immerse themselves into unique experiences that help make the consumer the center of their campaign.

For example, a major fashion label can make it possible for the everyday user to try on their latest lines and share it among their friends and network – this personalizes the brand for the everyday consumer and makes it more “real” which could lead to higher purchase intent and conversions.

Agencies will play a huge role here in identifying the gaps or misrepresentations that brands are currently experiencing.

Community & Expectation Management

With the Metaverse and NFTs growing in popularity, there is also a growing concern that brands and projects won’t be able to deliver on expectations. Community is, and will continue to be, a major contributing factor to a brand’s success or demise.

———

There’s no doubt that brands and their respective agencies are in for a rollercoaster as we witness the growing popularity of the Metaverse. 2022 will probably be the “make or break” year for brands that are exploring the space. 

Although this is a long-term bet for some brands, others are already laying the foundation for what’s to come and the consumers are joining in.