In 2020, newly launched NFT projects faced expensive gas wars, priority gas auctions where buyers fight for their place in the next pool, potentially losing Ether (ETH) due to failed transactions. In 2021, digital scarcity and utility were driving NFT hype in ever-growing markets, and by the end of the year, the amount of attention the group received seemed to depend on the opinions of influencers.
Gradually, transformations are emerging that bring new contributors with new sets of values that affect not only how projects are created, but also the elements they create. It looks like the NFT ecosystem in 2022 will focus on “strong communities” and the exclusive benefits of collectors.
No doubt some changes in trends have benefited some investors and local communities, but there are investors who meet these changes with resistance.
Let’s take a look at some of the new trends driving the pulse of the market and how these changes could affect NFT investors in 2022.
Change in mining strategy
The whitelisting came as a shift in coin strategy after the ongoing gas wars that angered many coin collectors and sought alternatives. Whitelists are organized and modeled for contributors who actively participate in project tasks and initiatives, as well as for owners of specific groups who want to play the game.
The advantage of this model is that it tries to highlight potential community members who will add value in the long run by giving them a coin. For collectors, the white-listed venue is not only a ticket for early access to a potential blue chip, but also a way to avoid competing with whales that can complete a group.
But being whitelisted can be good in theory, but not nearly as effective in practice. Whitelisting makes it easy for investors and collectors to get lost in the hype of society and the black hole of copy-and-paste farming. Some NFT collectors have commented that whitelisting is a “double-edged sword,” noting that even if they did give collectors early access, they would come at a time cost.
NFT builders avoid projects that implement this process entirely, and note an interesting pattern. NFT player and aggregator TravisAxie.eth said whitelists of some projects “released long before launch and somehow pushed me away from them.”
Other NFT lifters highlight issues with cracks in the whitelist system. Not only are there an increasing number of bots annoying and distracting from unconnected community members throughout the day, but projects seem to rely on these models to avoid public coins.
The projects are also strategically collaborating with other NFT groups in an effort to become a recognizable name in the ecosystem, as well as increasing the potential for coins to be sold.
While whitelisting can prevent transaction errors, the community seems to be looking for a better value-based way to allocate access. Thus, collectors also diversify the content of their collections.
Musical NFTs are ready to break many records
The Profile Persistent Guide (PFP) was at its peak in 2021, but by 2022, communities, businesses, and organizations are looking for NFTs with real functionality and benefits (IRL). Although known PFP groups are growing in size faster than their musical counterparts, there is a chance that this could change.
On January 21, 2022, encoder and DJ 3LAU sold their UltraViolet NFT album for $11.6 million in just 24 hours, breaking the record for releasing their first-ever NFT music album.
Breaking through the boundaries, 3LAU launched Royal.io, an NFT music platform where users can own some of their favorite tunes while earning royalties and additional benefits.
Led by Founders Fund and Paradigm, 3LAU has completed an impressive initial round of $16 million and has since captured the attention of famous musicians. Nas, the famous American rapper, released his first NFTs on the platform on January 11, 2022 for two of his songs “Rare” and “Ultra Black”. Fans quickly took to Twitter to show their support for the platform, with many calling it a “revolution”.
Emerging musicians and independent artists are also making waves. The artist, known on Twitter as Latasha.eth, has sold the NFT music video for her song “Gogo Wyne” for ETH $13.4207 ($51,623.97 at the time).