The biggest news right now is that China is starting to reopen to the world and especially regarding the NFT niche. According to the latest article, the Chinese government announced the release of a marketplace platform.

This could be big news for the NFT niche as there are many products appearing today that help build a more solid infrastructure for this NFT niche in the future. It is unclear how the NFT market will grow in 2023, but for me personally, this market is growing and is almost an indispensable part of the entire Crypto market.

This can be seen when the majority of newly launched projects have their own NFT products for each product or ecosystem. Recently, the terms SocialFi have been mentioned quite a lot and the initial products were all NFTs. This can see that NFT is the first and easiest door for Web3 applications in the near future.

In addition, many large market-oriented brands started from NFT such as:

• Steve Aoki launches A0k1, NFTs used to upgrade passports to A0k1verse. The passport offers fans free merchandise, exclusive access to Aoki's concerts, and the chance to create a song with Steve Aoki.

• Cristiano Ronaldo combined with Binance to launch his own NFTs. These NFTs allow Cr7 to connect with his fans. It is currently unclear exactly how they will connect, but this is also a sign for celebrities. participate in this market.

• VaynerSports is a talent representation and branding company for professional athletes in football, baseball, fighting and gaming. Founded by AJ Vaynerchuk, it launched an NFT membership card that allows holders to meet VaynerSports athletes and win tickets to professional sporting events.

The NFT market has reached a 90-day high in sales and daily users. This data shows that interest in NFTs is gradually increasing.

As traditional markets are increasingly saturated, big Brands participating in the Web3 market through NFTs will help them build direct relationships with their loyal customers while creating innovation in how customers interact and approach their brand. Maybe 2023 will be the year that big brands enter the Web3 niche and NFT will be the door that can lead Web2 users to access this market more easily.

2. Growth of NFT trading volume

In the past 30 days (December 2022 to early January 2023), NFT trading volume growth has increased dramatically with an increase of 50% for the Ethereum chain, 46% for Solana and 239% for Polygon. This shows that the heat is increasing again in the NFT market during the Bear season of the entire market.

This strong growth on Polygon may stem from Degods' Y00ts collection moving from the Solana ecosystem to Polygon. More related information behind this move is that Polygon paid $3 million for this deal. From here it can be seen that Polygon's ambition in the NFT field about PFP is wanting to stimulate large Labs from other chains to promote the development of the Polygon chain as NFT. As more Labs develop on the Polygon chain, it means that Polygon's number of users and transaction volume on the chain will continue to grow.

Ethereum is also seeing strong growth, which could stem from the massive activity of Yuga Labs as it prepares to launch its new set of NFTs. The condition to mint these new NFTs requires users to Hold NFTs from previous Yuga Labs collections. This creates great momentum in the NFT market as buyers and sellers are also highly active. In addition, many newly formed projects also have new mints, causing a sudden increase in transaction volume growth.

It can be seen that most of the growth comes from the Ethereum Chain and comes largely from Yuga Labs collections. In addition, we can see the return of the Pudgy Penguins collection to the race when previously there was a lot of information related to the Rug of this collection. At the same time, we can also see the emergence in the market of the new collection The Captainz, this is the latest collection from Memeland and an emerging name in the market recently.

Up to the present stage, trading volume on Ethereum still dominates the majority of the entire market. After a period of strong growth in Q4 2022, Solana's volume is currently decreasing quite a lot after the incident related to FTX and the transition. movement of major Labs in the NFT niche on this Chain. This could be a pivotal moment in this ecosystem to confirm the sustainability of the NFT niche on Solana in the near future.

3. Battle of the Marketplaces

Looking at the data above, we can see that Blur is an emerging marketplace and has a sizable market share for marketplaces in Ethereum's NFT market. With new applications and new approaches, this Marketplace is bringing high efficiency compared to major industry competitor Opensea.

According to data, since its launch in September, the transaction volume on this marketplace is growing significantly, especially in December, when the peak of transaction volume on this marketplace was recorded, accounting for 60% of the total market volume.

This also shows Blur's great influence compared to other competitors in the market. Basically, Blur is a Marketplace whose design is considered a Dex Aggregator, allowing users to place their NFTs for sale on all marketplaces or aggregate prices of collections on all exchanges. , making it easy for users to compare and buy NFTs at the best prices. In addition, the Bid statistics mechanism of collections also helps traders easily find the best entry position when trading on these NFT collections.

However, at present, Ethereum is still the chain that is providing a lot of stability with the highest transaction volume to date even during the bear season. While Binance NFT also lists collections on the Ethereum chain to attract its users.

Or most recently, Magic Eden floor also integrated the Ethereum chain to attract Daos, Builders on the Ethereum ecosystem and traders to trade on its platform.

2023 may be a race for these marketplaces when other competitors are Magic Eden on Solana or Binance NFT on BNB chain or most recently, Uniswap also launched a platform that allows buying and selling NFTs right on the platform. mine.

Up to now, Marketplace is considered the best product for businesses as it is a model that generates cash flow without depending on any project. The more Marketplaces are launched, the more the market will grow and increase competition, thereby bringing more development and advantages to Users.

4. NFT Finance

The biggest problem with NFTs has always been liquidity, if you compare the cash flow in the NFT market compared to other niches like Defi. With this inadequacy, many new projects have been launched to help increase liquidity in the market, not to mention making NFTs more accessible to ordinary users.

Sudoswap is a platform that is considered an AMM for NFTs as this project solves the liquidity problem for NFT collections, but users can form small pools to be able to buy/sell Blue Chip NFTs or have can provide liquid to help increase the liquidity of those collections. However, the AMM model will be more suitable for GameFi projects when these projects have many types of NFTs as well as the similarity of NFT types in the game.

The mortgage loan market grows in 2022, reaching >$500M and shows no signs of stopping. The loan market is the fundamental financial tool to power the NFT economy. NFTfi and BendDAO account for the majority of the loan market, in which NFTfi follows the peer-to-peer model and BendDAO follows the peer-to-pool model (this is a new model, not yet proven to be safe, but is more effective and has immediate liquidity).

Up to now, NFT-related products that incorporate Defi elements are gradually being launched to attract those with large amounts of money in the Defi market as well as increase liquidity for this market niche. New products can be mentioned as:

• NFTPerp (Future): this is a project that allows users to predict NFT prices of Blue Chip collections, with large leverages that help bring large profits to traders.

• Hook Protocol (option): Unlike other platforms that turn NFTs into smaller tokens that can be easily traded, Hook will help holders keep the nature of these NFTs and mint them into NFT Options Another allows options trading on marketplaces. This is a new mechanism that helps traders in the derivatives market to more easily access this NFT niche.

• Metastreet (Loan aggregator): This is a platform that allows users to profit from providing liquidity for bluechip NFT collectibles supported by the platform. This is a project to help Capital increase their profits based on NFTs without having to buy and sell ownership of those NFTs.

The development of the Finance segment during this period will help increase the liquidity of the entire NFT market while attracting more traders to participate in this market.

5. The combination of physical and digital

NFTs are tokens, acting as a representation of authenticity and ownership in the metaverse and real world. The gap between physical and digital is closer. These products add utility to physical products, such as unlocking token-based benefits, AR experiences.

Some projects have incorporated this element into their collections such as:

• RTFKT released a Nike AR hoodie that can be worn on the Clone X and allows owners to receive a similar hoodie. Or most recently launched CryptoKicks shoe product, this is a product combined with Nike to integrate chips into shoes with NFT to help increase real-world product and NFT experience.

• 9dcc launches a collection of T-shirts with NFC chips that allow NFTs to move with the product.

• Azuki launches physical-based token (PBT) to tie physical products to NFTs.

Offering free NFTs with physical product purchases allows brands to use and query on-chain information to reward users for interacting with their brand and products. The use of AR in fashion is a growing trend today.

6. Conclusion

The market capitalization of NFTs compared to the entire crypto market is quite low and shows how early we are. NFTs have the potential to grow into a multi-trillion dollar industry, and that future may not be too far away.

The combination with DeFi will help the NFT market grow in liquidity as it attracts more traders to participate in this market. In addition, NFT will be the initial gateway for big brands to create more new experiences for their loyal users. At the same time, it makes it easier for users from Web2 to access Web3.