As 2023 draws to a close, Non-Fungible Tokens (NFTs) remain an integral part of the Web3 space. People in the community are looking forward to 2024 with optimism, believing that the asset class has a lot in store.
From the rise of NFT gaming to ongoing regulatory uncertainty, Cointelegraph spoke with various Web3 professionals to gain their insights and predictions on the trends that may continue into 2024, as well as the challenges NFTs may face in the year ahead.
To better understand the differences between Web 1.0, 2.0, 3.0 and 4.0, we asked the experts to describe how Web 2.0 and Web 3.0 are different. They also explained the requirements for the Dynamic Web Module 3.0, which needs Java 1.6 or newer.
NFT predictions for 2024
What will the future of Non-Fungible Tokens (NFTs), Decentralized Autonomous Organizations (DAOs) and Web 3.0 look like in 2024? As technology advances, we can expect to see more and more applications of AI, and the beginnings of Web 3.0. We can also expect to see a greater distinction between Web 1.0, 2.0 and 3.0, with the latter requiring Java 1.6 or newer for its dynamic web modules. We can also expect to see differences between the three versions of the web, with Web 1.0 being the most basic, Web 2.0 introducing a more interactive experience, and Web 3.0 allowing for more personalized experiences. This could involve a greater level of personalization in terms of content and user experience. Overall, we can expect to see a greater level of sophistication and complexity in the use of NFTs, DAOs and Web 3.0 in 2024. As these technologies become more commonplace, we can expect to see a greater level of innovation and creativity in how they are used.Connections between digital and physical
Professionals in the Web3 space are expecting to witness an increase in the connection between digital and physical assets by 2024. John Crain, co-founder and CEO of SuperRare Labs — the entity behind the NFT marketplace SuperRare — believes that the NFT space will be a major factor in this intersection. According to Crain, there will be a “significant rise” in the connection between the two worlds, with NFTs acting as “digital twins and certificates of authenticity.” He also noted that collectors’ love for physical editions of NFT art could be another growth driver in the next year.
Tokenization of real-world assets (RWAs) has been a hot topic in the crypto space throughout 2023, and Oh Thongsrinoon, chief marketing officer of Altava Group — which connects luxury fashion brands with Web3 — believes this trend will continue in 2024. Thongsrinoon believes that NFTs have utilities and value beyond just being profile pictures (PFPs). Altava has applied RWA tokenization to NFT collections for its clients, with utilities like branded merchandise, intellectual property ownership and management, exclusive access and product consultations.
The executive also shared that tokenizing real-world assets would allow NFTs to “transcend speculation” and have real-world value backing the assets. He added that he can see NFTs penetrating industries like precious metals and real estate in 2024.
Vineet Budki, CEO of Web3 venture firm Cypher Capital, made similar predictions. Budki told Cointelegraph that “Beyond the initial hype, 2024 will see NFTs mature into valuable tools with real-world applications.” He expects that fractional ownership of assets, dynamic digital experiences and hybrid physical-digital blends will all be possible with NFTs in the next year.
NFT gaming taking off in 2024
Another area where Non-Fungible Tokens (NFTs) are expected to have an impact in 2024 is gaming. Jason Lau, chief innovation officer at crypto exchange OKX, mentioned to Cointelegraph that some gamers are still hesitant about Web3 games and NFTs, while video game companies are already delving into the space. He pointed out Square Enix’s game Symbiogenesis and Mythical Games’ NFL Rivals, which both use NFTs. Lau explained:
Crain also shared Lau’s views. According to the executive, the first NFT games focused more on the novelty of the tokens than on providing an enjoyable experience for the players. Crain expects that in 2024, this will be different, as some games have already started to shift their direction: “We’re finally seeing Web3 game studios building awesome games that leverage NFTs and tokens as well.”
Henry Chang, CEO of the South Korean game development company Wemade, previously predicted that there will be a surge in blockchain-based games in 2024. Chang noted that as developers become more familiar and confident with the use of Web3 elements in games, the gaming community can expect to see a more sophisticated implementation of blockchain mechanics and gameplay.
Bitcoin NFTs Further Enter the Mainstream
The adoption of Bitcoin-backed NFTs has been on the rise in 2023, and Web3 professionals expect it to keep growing in 2024. According to Lau, many have become wary of NFT projects that were just a “quick cash grab.” He also noted that Bitcoin Ordinals have demonstrated “surprising staying power” due to their on-chain art and data storage, which provides users with the security, scarcity, and immutability of the Bitcoin blockchain.
Thongsrinoon is also certain that Bitcoin NFTs can keep thriving in 2024. He stated that while NFTs suffered in 2023, Bitcoin-based NFTs have been gaining traction. This development is beneficial for the crypto space and could help revive the interest in the metaverse.
Challenges for NFTs in 2024
The development of technology, AI, and web 3.0 have brought many changes to the digital world. There are differences between web 1.0, 2.0, 3.0, and 4.0, with dynamic web module 3.0 requiring Java 1.6 or newer. Web 3.0 is the latest version, and it is different from web 2.0 in many ways. We can also see the emergence of Defi, NFTs, and DAOs as part of the web 3.0 ecosystem. In 2024, these elements will present many challenges to NFTs.
Overcoming stigma and exhaustion
The professionals Cointelegraph spoke with identified changing the public narrative towards Non-Fungible Tokens (NFTs) as one of the most significant challenges the space will face in 2024. Crain believes that NFT projects should strive to demonstrate that the technology is not only used for scams, which will help to shift the public’s perception. Lau noted that many people who had contact with NFTs in the past cycle remain doubtful that the technology has moved beyond the previous false promises. However, Lau believes there are positive signs of recovery at the end of 2023.
Thongsrinoon suggested that the projects that survived the crypto winter must be innovative. He believes that the emergence of Bitcoin NFTs could help to stimulate the NFT space by creating healthy competition and rekindling interest in the technology.
To summarize, the Defi, NFTs, DAOs, and Web 3.0 space must strive to overcome the stigma and exhaustion of the past in order to realize its full potential.
Regulatory issues surrounding NFTs will continue
In 2023, the United States Securities and Exchange Commission, the nation’s securities regulator, took aim at the NFT space by filing its first unregistered securities claim against an NFT collection sold by entertainment company Impact Theory. This sparked debate, with some commenting that it’s problematic for the SEC to imply that all NFTs are securities.
Lau pointed out that NFTs remain a “gray area” despite the fact that some jurisdictions are beginning to create clarity around crypto assets. He highlighted the Markets in Crypto-Assets (MiCA) regulation, the European Union’s comprehensive legislation on crypto, which leaves NFTs and unique assets out of its scope.
Budki also shared similar views, saying that the situation creates uncertainty for businesses and investors. He highlighted that as NFTs continue to grow in 2024, the space needs a clear legal landscape to ensure the development of DeFi, NFTs, DAOs, and Web 3.0.
Future of NFTs
When asked about their thoughts on the future of NFTs, the executives expressed bullish opinions on the technology. Crain believes that NFTs will become standard infrastructure for the internet. The executive highlighted that NFTs provide a simple, effective “mechanism for provenance” of digital content. He explained: NFTs, Defi, DAOs and Web 3.0 are all playing a role in representing the value humans find in the digital and physical space.
Meanwhile, Lau doubled down on the importance of RWA tokenization and NFTs in capturing an “endless range of possibilities.” He further stated that Web 3.0 is already in motion and is expected to revolutionize the way we interact with the web.
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