The crypto trading firm has seen that NFTs are becoming more intertwined with the brand IP, while Web3 apps that have ”real-world utility” have been gaining traction.
Despite all the crypto collapses and price drops that have occurred this year, Steven Goulden a senior research analyst at the crypto trading firm Cumberland has pointed out that in 2023, several ”green shoots” will break the surface of crypto.
On Dec 24, a 14-page report released by Goulden stated that he saw four ”emerging narratives in 2023 that’ll lead to ”significant progress” for the crypto trading over the next six to 24 months.
Now the significant progress includes, the nonfungible tokens (NFTs) becoming a ”go-to” method for tokenizing a brand’s intellectual (IP), also Web3 apps and games are going to become ”genuinely popular”, while Ether and Bitcoin could also become more commonly used as a nation’s reserve asset.
Goulden further argued that the NFTs up until this day has been ”largely confined to the art space”, Goulden believes that the next step for the NFTs will lie in the marrying of the NFTs and a brand’s intellectual property.
The analyst further noted that many companies that are non-Web3 are already making various ”significant progress” to improve customer engagement and monetize IP using NFTs.
Also, among those include a Starbucks partnership with Polygon to generate NFTs for Starbucks customers, and the Nike launch of Swoosh, which also enables users to enable to design customized sneaker NFTs.
Goulden additionally stated,
”Listening to these companies talk Web3 initiatives, it’s clear they see digital engagement with customers and fans as a new aspect of the retail experience”.
Goulden expressed that ”selling NFTs to retail users has the potential to generate material, high-margin revenue”. Nike is considered a textbook example of that, having generated $200 million from digital sneakers alone.
The analyst Polygon LooksRare and 0xmon to lead the way on this front. Goulden, the Cumberland analyst also said that NFTs will become a ”go-to method of tokenizing the IP’‘, also sharing that there are around $80 trillion of intangible assets that exist on corporate balance sheets.
Real-World Utility Apps To Gain Traction
Goulden also sees the adoption of Web3 as a platform for providing ”real-world utility” that will be starting to gain traction in 2023, acknowledging it has been stated as ”extremely challenging” to disrupt Web2 monopolies thus far:
” The reality is that it takes time to build and bootstrap projects like these, and so we anticipate material traction is probably 12+ months out, with serious user adoption 2-5 years”.
Web3 Games To Attract ”Serious” Gamers
Goulden, the analyst was also seen as optimistic about the Web3 gaming market, stating that there are around three billion gamers in the world, around 200 million of which are ”serious”, and represent $200-300 billion in total addressable market. ”[…] yet these users usually don’t own in-game items and have little control or governance over these gaming ecosystems,” said Goulden.