Despite an eventful year fraught with crypto collapses and price drops, Steven Goulden, a senior research analyst at crypto trading firm Cumberland has pointed to several “green shoots” to break the surface in crypto in 2023.
In a 14-page “Year in Review” report released on Dec. 24, Goulden said he saw four “emerging narratives” in 2023 that will lead to “significant progress” for crypto over the next six to 24 months.
These include nonfungible tokens (NFTs) becoming a “go-to method” of tokenizing a brand’s intellectual property (IP), Web3 apps and games becoming “genuinely popular,” while Bitcoin (BTC) and Ether (ETH) could become more commonly used as a nation’s reserve asset.
In 2023, we anticipate that we’ll see meaningful green shoots break the surface in several key areas, which will pave the way for significant progress in the next 6-24 months. Hear from a senior research analyst on emerging narratives for 2023: https://t.co/8E0cZOp6Ta pic.twitter.com/rO1KKvxIdA
— Cumberland (@CumberlandSays) December 23, 2022
Goulden argued that while NFTs have until this point, “largely been confined to the art space,” he believes the next step for NFTs will lie in the marrying of NFTs and a brand’s intellectual property.
The analyst noted that many non-Web3 companies are already making “significant progress” to monetize IP and improve customer engagement using NFTs.
Among those include a Starbucks partnership with Polygon to generate NFTs for Starbucks customers, and Nike’s launch of Swoosh, which enables users to design customized sneaker NFTs.
“Listening to these companies talk about Web3 initiatives, it’s clear they see digital engagement with customers and fans as a new aspect of the retail experience,” said Goulden.
He also noted that “selling NFTs to retail users has the potential to generate material, high-margin revenue.” Nike is a textbook example of that, having generated $200 million from digital sneakers alone. The analyst expects Polygon (MATIC),…
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