Animoca Brands has solidified its position as a major player in the Web3 space, reporting impressive NFT sales figures of $500 million. This accomplishment is more than a statistic. It underscores the changing realities of this new Web3 world, demonstrates the increasing power and usefulness of NFTs, and points to a movement away from speculative investment in this new digital asset ecosystem. In this article we take a look at the key ingredients to Animoca Brands’ success. It explores what this all means for the future of Web3 as a whole.

Animoca Brands: A Web3 Powerhouse

Animoca Brands success can be attributed to a smart multi-pronged approach. The firm has purposefully focused on diversifying its portfolio, fostering projects both in-house and for third-party developers on different blockchain networks. This big-tent approach helps them reach the various audience groups in the fast-growing, decentralized Web3 space.

The innovative spirit is joined by the reality that the company isn’t shy about adapting and adopting new technologies. Animoca Brands has already invested huge sums into AI-themed projects and start-ups. They can envision the use of artificial intelligence to bring more value to blockchain applications. They’re using AI tools in-house to make their own operations more efficient, showing a strong spirit of innovation and efficiency.

Animoca Brands understands the power of collaboration. Just in 2024, they invested in and adopted 70+ cutting-edge companies spanning 20 unique verticals in Web3. These collaborations allow them to boost their impact, tap into different areas of expertise, and create a dynamic network of related initiatives. As a result, the company’s digital asset advisory and Web3 operating businesses have boomed. Their investment management segment has been on fire, pulling the whole company up with it. Animoca Brands has forged strategic alliances with established players like Astar Network, Sony's Soneium blockchain network, and Square Enix's Symbiogenesis, further solidifying its position in the market.

The Expanding Utility of NFTs

NFTs have addressed the fundamental flaws of simple digital collectibles. And they are increasingly being used in new ways, fueling demand and increasing their real-world applications.

NFTs are no longer just digital art, they now come with real world benefits and exclusive access. Membership-based initiatives, such as those found within the Bored Ape Yacht Club, utilize NFTs to provide their members with unique rewards and advantages. This characteristic invites a rich sense of place and belonging. NFTs have found their most natural use outside the digital art world representing virtual goods and assets in games and metaverses. You can purchase, sell, and trade these digital items—how cool is that—like digital art, music, and even in-game assets. This creates a new economic prospect for both creators and players! Outside of the entertainment and collectible space, NFTs are being used for far more practical purposes. For instance, Saudi Arabia has recently announced an NFT-based identity verification system to be used instead of passports.

The music and entertainment industries are embracing NFTs as a new way to engage with fans and generate revenue. Take the popular rock band Muse, for example. When they released their most recent album, they created a limited-edition run of just 1,000 NFTs. The gaming industry is already pushing the boundaries of what’s possible with NFTs. Two, for instance, is the design of virtual trainers that players can buy and hold in their metaverse wallets. These examples show how NFTs can be used in multiple ways and showcase how NFTs can disrupt various industries.

Investment Trends and Future Outlook

The success of Animoca Brands and the expanding utility of NFTs are influencing investment trends within the digital asset space. Here are a few major trends that will help determine where Web3 and NFT investments are headed next.

If spot bitcoin ETFs are successfully launched in January 2024, more ETF approvals and launches are seen in 2025. This would help attract even more institutional investment into the broader crypto market. The RWAs trend of tokenization is only going to expand. In 2025, expect further launches, including tokenized money market funds that will serve as onramps between traditional finance and decentralized finance (DeFi). As we discussed last week, the relationship between blockchain and AI is only going to deepen. All of these benefits, as well as faster, better analysis of data and more secure infrastructure, will be unlocked.

US dollar-pegged stablecoins are on track for an acceleration in adoption. This vigorous increase will be propelled by possible legislation and their increasingly central place in payments and cross-border transactions. The financialization of social trends is a growing trend that is not slowing down. Arguably the most poignant example of this is the phenomenon of memecoins. Investors looking to capitalize on these trends can consider several options:

  • NFT marketplaces: Investing in popular NFT marketplaces like OpenSea, Rarible, and Nifty Gateway can provide opportunities for growth.
  • NFT coins: Investing in NFT coins like Decentraland (MANA), The Sandbox (SAND), Enjin Coin (ENJ), and ApeCoin (APE) can provide exposure to the NFT market.
  • Metaverse platforms: Investing in metaverse platforms like Decentraland, The Sandbox, and Star Atlas can provide opportunities for growth in the NFT market.
  • NFT collections: Investing in popular NFT collections like CryptoPunks, Bored Ape Yacht Club (BAYC), and Axie Infinity can provide opportunities for growth.
  • NFT-based games: Investing in NFT-based games like Axie Infinity, Decentraland, and The Sandbox can provide opportunities for growth in the gaming industry.

Whether such business acumen is convincing Animoca Brands’ current stratospheric NFT sales figures are good enough. That’s just part of what this success represents. What it speaks to is the growing maturity and potential of the Web3 space. NFTs are still in their infancy and finding their way into all sorts of new use cases. As investments continue to flow in different forms, the outlook for Web3 is brighter than ever.