Competitive Outlook for NFTs in 2023

The Block Research has recently reviewed the lay of the land of the NFT market and has demystified core themes that have left their mark on the NFT space in 2022. In brief, the total NFT trading volume on Ethereum soared to a monthly record-high $5.6bn in January, while Solana NFTs had their coming-of-age moment in the second half of the year. Key trends that ended up becoming foundational for the overall development of the NFT market included the erosion of creator royalties, cost leadership wars among marketplaces, Yuga Labs' unparalleled rise to power, the prevalence of airdrops, the uncoupling of generative art from the profile picture (PFP) segment, and others.

In terms of the road ahead, the NFT market is likely headed toward a pivotal stress test that would select for NFT brands that are most adaptable amidst extremely unfavorable market conditions. At the end of this conflict-ridden road, the next phase in the pursuit of mass adoption would likely await, which is already heralded by big corporations diving headfirst into the sea of NFTs.