The crypto-trading firm sees NFTs becoming more closely tied to branded IP, while Web3 applications with “real-world utility” are gaining traction.

Despite a turbulent year of crypto crashes and price declines, Steven Goulden, senior research analyst at crypto trading firm Cumberland, pointed to several “green shoots” that will break the surface of crypto in 2023.

In a 14-page report on the year in review published Dec. 24, Goulden said he sees four “emerging narratives” in 2023 that will lead to “meaningful advances” for crypto over the next six to 24 months. .

These include non-fungible tokens (NFTs), which are becoming a “go-to method” for tokenizing a brand’s intellectual property (IP), Web3 apps and games are becoming “very popular” while Bitcoin

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and ether

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could be used more often as a national reserve.

Goulden argued that until now NFTs “have largely been confined to the art space”, he believes the next step for NFTs will be to connect NFTs and a brand’s intellectual property.

The analyst noted that many non-Web3 companies are already making “significant progress” in monetizing intellectual property and improving customer retention using NFTs.

These include a Starbucks partnership with Polygon to generate NFTs for Starbucks customers and Nike’s introduction of Swoosh, which allows users to design custom sneaker NFTs.

“If you listen to these companies talk about Web3 initiatives, it’s clear they see digital interaction with customers and fans as a new aspect of the retail experience,” Goulden said.

He also noted that “selling NFTs to retail users has the potential to generate significant, high-margin revenue.” Nike is a classic example, having generated $200 million from digital sneakers alone. The analyst expects the polygon

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, LooksRare (LOOK) and 0xmon (XMON) to lead the way on this front.

CryptoKicks digital shoes from Nike and RTFKT. Source: Nike.
The Cumberland analyst also said NFTs would become a “go-to way of tokenizing intellectual property”, noting that there are approximately $80 trillion in intangible assets on corporate balance sheets today.

Handy utility apps to gain ground
Goulden also sees adoption of Web3 platforms that deliver “real value” becoming more important in 2023, acknowledging that disrupting Web2 monopolies has been “extremely difficult” thus far:

“The reality is that projects like this take time to build and get started, so we anticipate that hardware traction will likely be over 12 months away, with serious user adoption likely in 2-5 years. ”
Some “really useful” platforms Goulden pointed to were IT recruiting platform Braintrust, Internet of Things protocol Helium, GPU rendering service Render, global mapping project Hivemapper, and carpooling app Teleport. .

Web3 games to attract “serious” players
The analyst was also bullish on the Web3 games market, noting that there are around three billion gamers worldwide, of which 200 million are “serious” – representing a total market of $200-300 billion.

“[…] Yet these users typically do not own in-game assets and have little control or control over these game ecosystems,” Goulden said.

Related: 5 Cryptocurrencies to Watch in 2023

Goulden says the play-to-earn aspects of blockchain-based games will result in significant profitability for developers, but added that we likely won because it “takes like 2-3 years to get a triple-A game ( highest quality blockbuster)”. I don’t see a “web3 game becoming a star” until 2023 or 2024.

Web3 games market figures. Source: mushrooms.
BTC and ETH as reserve assets
Finally, the research analyst suggested that particular attention should be paid to the potential role of BTC and ETH as a reserve asset, especially for export-oriented countries.

Goulden said many export-heavy countries around the world may choose to bolster their reserves with alternative assets like cryptocurrency instead of US Treasuries to push their own currencies against the US dollar.

Source: CoinTelegraph