2024 and Beyond: Unveiling the Revival of Celebrity NFTs Amid Evolving Markets
Seth H. Huang, PhD
Quantitative Investing | Adopting AI in Fintech | HKUST Professor
From 2021 to 2022, Celebrity NFTs captured significant attention, with numerous stars entering this burgeoning market. This period saw a dramatic increase in both trading volume and prices as fans and investors alike flocked to participate. However, by the end of 2022, the market experienced a sharp decline, leading many to declare the end of NFTs. According to Dune Analytics, NFT trading volumes plummeted by 97%, falling from $17 billion in January 2022 to just $470 million by September 2022.
Despite this downturn, several indicators suggest that Celebrity NFTs may be on the verge of a revival. Celebrities are still engaging with the NFT market. Cristiano Ronaldo launched his own NFT collection. according to the report,he unveiled plans for his upcoming NFT collection in collaboration with Binance. Scheduled for release on May 29 on the Binance NFT Marketplace, this new collection aims to commemorate key milestones from his illustrious career. but there’s so far been no mention of price. Similarly, Snoop Dogg continues to explore and expand their NFT ventures. last year, Rapper Calvin Broadus Jr. and entrepreneur Snoop Dogg launched a new NFT collectible series that will evolve in utility as he goes on summer tour.
The cryptocurrency market's recovery and the progressing tokenization of real-world assets are contributing to a resurgence. Platforms now integrate NFTs into games and Web2 environments more frequently. For instance, Yuga Labs' integration of NFTs in their Otherside metaverse and the continuous development in blockchain gaming demonstrate the evolving use cases of NFTs. Additionally, major brands like Nike and Adidas are establishing their NFT identities, with numerous artworks and performance events moving into this digital realm. According to a report from Hacker Noon, advancements in tokenization processes are expected to play a significant role in the broader adoption of NFTs.
A standout attribute of NFTs is their capacity to validate ownership, which can be applied to various use cases such as real estate transactions and ownership verification. This utility extends beyond purely digital properties to tangible, real-world assets. For instance, platforms like Propy utilize NFTs for real estate transactions, showcasing how NFTs can authenticate and secure property ownership.
NFTs are poised to change how live events are experienced. Virtual ticketing via NFTs can enable people worldwide to attend concerts or performances without physical venue constraints, providing an immersive experience. This approach offers celebrities a convenient way to maintain and enhance fan relationships while expanding their influence globally. Artists like Kings of Leon have pioneered NFT ticket sales for their concerts, allowing them to offer exclusive content and experiences to their fans.
The entry of well-known brands into the NFT space bolsters the resurgence of Celebrity NFTs. In traditional marketing, celebrity endorsements and collaborations are common. This is echoed in the digital space where brands leverage celebrity NFTs for co-branded promotions. Gucci and Balenciaga, for instance, have begun exploring NFT collaborations with celebrities, bridging the gap between luxury retail and digital collectibles. Given the historical success of such collaborations, the rise of Celebrity NFTs could be imminent.
(From: DefiLlama)
While NFTs may currently seem to be at a low ebb, factors like the ongoing advancements in tokenization and the increasing traction of the crypto market provide a foundation for recovery. As noted by industry experts, the true potential of NFTs lies in their utility and ability to unlock liquidity.
Therefore, despite current market conditions, there is optimism that the NFT market, particularly the segment involving celebrities, will experience a renaissance and continue to thrive.
Sources:
1. Dune Analytics Report - https://dune.com/
2. Hacker Noon Article - https://hackernoon.com/nft-market-trends-in-2024
3. Platinum Crypto Academy - https://www.platinumcryptoacademy.com/nfthub/nft-market-summary-april-23-2024
4. Snoop Dogg Drops New NFTs That Evolve With His Tour-https://www.coindesk.com/web3/2023/06/13/snoop-dogg-drops-new-nfts-that-evolve-with-his-tour/
5. Cristiano Ronaldo unveils 4th NFT collection with Binance despite $1B lawsuit-https://cointelegraph.com/news/cristiano-ronaldo-unveils-4th-nft-collection-binance-lawsuit