Remember the Beanie Baby bubble? Or the dot-com crash? After the hype and crash that has burned many across the NFT and crypto spaces, many are rightfully skeptical. This time just feels different. Read on for more projections of the global NFT market reaching $703.47 billion by 2034! It's audacious, I know. It's not just hot air. This isn’t quite the same budgetary feeding frenzy as several years ago.

This growth, unlike past surges, has much more fundamental basis. So why am I, Lian Chen, an Unwavering Optimist (as some would have you believe), so confident. Read on for three reasons this bull run is different, and why you should be getting excited.

AI Powering NFT Creation and Value

Think of AI as the Picasso of the 21st century. Unique to each of us, this creative genius never sleeps and can churn out masterpieces that are 100% customized to your own unique preferences. AI is quickly becoming more than a buzzword, and it’s already making an impact on the NFT landscape. We're seeing AI algorithms that can generate unique NFT art, personalize content based on user preferences, and even optimize metadata to increase discoverability and value.

Take platforms such as Art Blocks, which employs generative algorithms to produce distinct, on-chain artworks. Or Alethea AI, which is creating intelligent NFTs (iNFTs) that can have conversations with users. This is more than iteration on just producing more NFTs, it’s producing smarter, more engaging and in the end, more valuable NFTs. It’s really about going beyond one-dimensional print assets and to two, three, and even four-dimensional, dynamic, interactive digital assets.

It’s akin to the early internet boom when search engines were in their infancy. Well, picture this—try doing it without Google! And AI is quickly becoming that search engine for the NFT space, aiding users as they try to locate the gems amongst the noise.

Institutions Are No Longer Sidelined

You know, kind of like that time grandma asked you how to buy a Bitcoin. Now, even she's heard of it. The same thing is happening with NFTs, but with a twist: big brands are leading the charge.

Nike acquiring RTFKT Studios, a company that designs virtual sneakers on the metaverse? Rumor alert Meta preparing to launch NFT display functionality on Facebook and Instagram! These aren’t just passing fancies, these are serious investments. Further, it’s encouraging because it signals that all of the major players view NFTs as something more than a fleeting fad. Their perspective is that NFTs are a key ingredient to the future of digital ownership and brand engagement.

Think about it. And Nike, a company historically built on the success of their physical products, has gone all-in on virtual assets. This is more than just selling digital sneakers. That’s why we are building a fun and colorful digital ecosystem — a metaverse experience where users can showcase their individuality and engage with the brand like never before. And Meta? Bringing NFTs into social media feels like releasing the kraken on widespread adoption.

These institutions are investing in the infrastructure, the platforms, and the talent necessary to make NFTs a sustainable part of the economy. This is similar to the railroads building out infrastructure for the industrial revolution. It's laying the foundation for long-term growth.

Utility Beyond Collectibles Is Emerging

Unfortunately, the early days of NFTs were largely characterized by speculative collectibles – JPEGs of apes and punks selling for millions. Though that market still exists, the true power and potential of NFTs are rooted in their utility.

NFTs are outgrowing their purpose as tools for pure speculation or collectibles, establishing legitimate real-world use cases in online gaming, brand loyalty programs, digital identity, and beyond. Play-to-earn games such as Axie Infinity are demonstrating the capabilities of NFTs in exciting ways. Further, they keep players engaged by rewarding them for their time and effort. Brands are leveraging NFTs to build exclusive communities for their consumers, giving them access to exclusive events, discounts and merch drops. Countries around the world are already piloting NFTs for digital identity, digitally native, cryptographically secure and verifiable credentials.

This has been the case with the rapid evolution of the smartphone. It started out as simply a phone. Today, your alphabet soup of a device double serves as a camera, music player, GPS and portable computer. NFTs are going through a comparable revolution, evolving to become highly flexible tools that can be applied in multiple industries and use cases. Among these segments, the commercial segment is expected to register the highest CAGR. Together this growth will be driven with the marketing of loyalty programs, optimize ticketing, IP protection and product authenticity.

With its forward-thinking approach towards technology, Singapore is truly primed to take full advantage of this burgeoning trend. The United States’ regulatory environment encourages innovation and responsible NFT development. At the same time, the government is vigorously promoting innovation within the blockchain eco-system.

The NFT market still has its challenges. Volatility, scams and security risks are all legitimate worries. There are lessons to learn, to be sure, but the underlying technology is solid, and the opportunity for innovation is huge.

I see even the drastic growth of the NFT market, particularly in its early form as a speculative bubble, as a democratizing, empowering force. It allows creators to connect directly with their audiences, retain more control over their work, and participate in a more equitable digital economy. Now is the moment to tap into the potential of the NFT environment. Invest wisely, engage fairly, and join us as we explore the future of digital ownership. This bull run is different. Don't miss out.