It is no clandestine that nonfungible tokens (NFTs) are still a niche subject area. Despite their rapid surge in popularity during 2022, there is nonetheless a significant per centum of people who practice not know what an NFT is. Reflecting on the graph beneath, it is axiomatic that a lot of work needs to be done for NFTs to truly hit the mainstream.

However, it is clear from recent months that in that location is potential for this to happen, and there accept been many signs of awareness and adoption which I volition discuss in this article.

Celebrities

Celebrities have been a key proponent in the ascent of NFTs. Initially, the NFT space began with artists, creators and traders, all of whom set up the foundations for what the NFT space is today. Since then, notable figures accept also entered the space, whether it exist via creating their ain projects or but collecting. The influx of celebrities in recent months has been extremely valuable in terms of expanding the accomplish of NFTs but, in the NFT infinite, everyone starts from square 1 and value does non arise from influence. For many celebrities that created NFT collections without because the long term, their NFTs have failed to sustain value, therefore reinforcing this point.

There is a difference between celebrities that have provided value and those who accept sought to turn a profit from the infinite. Take, for example, Pharrell Williams, Snoop Dogg, Jimmy Fallon, Tom Brady, Paris Hilton, Post Malone, The Weeknd, Stephen Curry, Lil Infant, Timbaland and DJ Khaled. They are all celebrities who have bought into collections and displayed them as their contour pictures.

These celebrities take certainly been a major catalyst for the growth of the NFT infinite, and equally the number of celebrities in the space snowballs, at that place is no doubt that their influence will help to cement the crypto culture into the mainstream. But, most importantly, they are joining us — they are non changing the dynamics or making the rules. The NFT space is a collaborative effort, and we are building value together.

Related: Celebrities are embracing NFTs in a big way

Adidas

Perhaps the almost meaning mainstream bridge to date has been the Adidas partnership with Bored Ape Yacht Social club, Gmoney, and PUNKS Comics. In a motion that shook the NFT earth with excitement, Adidas launched a new Twitter business relationship, Adidas Originals, with these new partners to hash out their plans.

In this space, they announced a number of of import things — firstly, their plans for inbound the Metaverse, a digital world that will let users to interact virtually in the time to come. To illustrate their thought, they released a trailer that depicts Adidas' Bored Ape and representations of its new partners seamlessly traveling through the sky and into the Metaverse.

Related: Just buy it: Nike wants to bring sneakerheads into the Metaverse

The Adidas Originals account also changed its profile moving picture to the newly purchased Bored Ape Yacht Club NFT #8774, a very specific blue ape they named Indigo Herz, with eye spectacles and a fisherman's cap, would be the face up of its brand in the Metaverse.

Why is this so groundbreaking?

Thus far, the NFT infinite has been comprised of individuals. Whether it exist regular traders, creators or even celebrities, it has been the individuals who have pushed the space forward. Now enter Adidas, a traditional and mainstream make that has iv 1000000 Twitter followers and 26 meg followers on Instagram. The presence of this one make has the power to bring more than eyes to the space than all of the individuals combined, thus spurring the growth of NFTs significantly.

Related: NFTs as micro-social networks: The path to crypto adoption

To further this vision, Adidas also partnered with Coinbase, the leading cryptocurrency commutation platform. Additionally, information technology besides partnered with The Sandbox, one of the most popular metaverse games. In a tweet, Adidas showcased its very own Sandbox plot, a slice of digital state which officially cements its position within this metaverse.

Ubisoft

Ubisoft was the next big company to follow the Web3 route this calendar week when it announced that Ubisoft Quartz will be available on the Tezos blockchain. The premise of the platform is that users volition exist able to buy and sell in-game items named "digits" using cryptocurrencies. This is significant because information technology will grant players buying of their in-game items, which inside regular games would but be available within and exist dependent upon those games' own private ecosystems, as opposed to the blockchain, which allows for buying completely independent of a game world.

Why is this so significant?

Ubisoft is ranked among the top 25 largest gaming companies with over $5.viii billion in capital. If this is simply the first step into NFTs, it is certainly capable of something much more than circuitous in the time to come. Comparable to Adidas and other big brands that have delved into the space, they are each succeeding in bringing more attention to the prospect of NFTs equally a technology that is taken seriously.

Despite the entry of Ubisoft marking a huge step towards bringing NFTs to the mainstream, their announcement was non met without criticism. In fact, their YouTube video received over xx,000 dislikes in the beginning hour, and the company received resounding backlash across their social media, forcing it to delist the video.

When scoping the comments, information technology is evident that the hate stems from a number of sources where users:

  • Dislike the company irrespective of NFTs.
  • Dislike the payments; the cost may be out of achieve for many.
  • Dislike the energy consumption that NFTs crave.
  • Dislike NFTs in general.

This reflection certainly reaffirms the fact that NFTs require a lot of work before being accepted and adopted past a wider mainstream audience. But information technology is not only individuals — some of the leading game platforms, such as Steam, have banned blockchain games from their store completely. It remains to be seen whether Ubisoft will go on with its plans. Still, its initial conviction has also highlighted the fact that NFTs are growing fast, especially if a billion dollar company is considering adopting them!

Just why are NFTs so controversial, and how is this preventing them from greater mainstream adoption?

What is preventing NFTs from entering the mainstream and what improvements can be made?

Stigma and a lack of trust are two of the well-nigh primal reasons why NFTs have been prevented from entering the mainstream. To an extent, some of the stigmas are valid when because those that have fallen victim to carpet pulls. Furthermore, many accept been left vulnerable to the threat of scams and hacks that have grown increasingly. You have also probably heard that "NFTs are a scam," "NFTs are for money laundering," and "NFTs are a pyramid scheme." But this is not representative of the entire film.

Indeed, there are bad players in the space that engage in this behavior, much like how, in real life, there are scammers likewise. Just this does not account for the unabridged space. Furthermore, your NFTs can be protected entirely by using a hardware wallet, also known equally a cold wallet. Information technology is stored on the blockchain and merely you lot accept the private key to access information technology.

To prevent scams further, in that location undoubtedly has to be better modes of communication introduced for NFT users and safer platforms that ensure the rubber of those that use them. Although carpeting pulls are an issue, they do not occur beyond the entire space. There are still serious and legitimate NFT projects that are trustworthy. Rather than forcing NFTs into a broader label such as a "scam," what is required is a greater understanding of the teams backside them, and more than research is needed before making investments.

Related: Nonfungible tokens: How to go started using NFTs

Another barrier to mainstream adoption is that, if you lot are new to the space, setting up a Coinbase account and MetaMask wallet can be extremely confusing if y'all practice not know where to start. In that location are fees, transfers and difficulties involved at every step of the style, making this a serious barrier for entry. For the boilerplate person, this will deter them from fifty-fifty considering entering the space. Then, if NFTs are to appeal to the mainstream, there has to be a simpler process of getting started.

Support is needed. You cannot be expected to create a wallet, brainstorm trading and make transfers simply on your own unless, of class, you are extremely committed. It is a magnificent chore for anyone and, therefore, we demand guides, helping hands and ways of supporting people through the process. The intricacies of getting started are a serious barrier for entry and, although guides are helpful, something more comprehensive is needed that will make life easier for anybody involved. Until then, it is difficult to say when NFTs will achieve mainstream adoption.

Moving forwards

NFTs accept a long style to go earlier they're adopted by the mainstream. However, as this commodity outlines, there are already a number of important indications that suggest they volition in the futurity. Whether information technology be celebrities, big brands or corporations, more than eyes will come up to the infinite and, as the timing aligns and consumers recognise this, a shift in thought could take place. Simply, before this, a lot of work needs to be done in regards to didactics and accessibility.

Related: Decentralization vs. centralization: Where does the future lie? Experts answer

There are clearly pros and cons to both regulation and decentralization. Centralized platforms let for frameworks and safety. On the reverse, decentralization offers innovation and free reign. Just on the downside, regulations preclude ownership and free reign, while decentralization enables the breeding of scammers and people acting in bad faith.

What nosotros practice know is that the NFT is a new technology however in its experimental stages. But already we are seeing attraction from mainstream companies and brands. The adoption of NFTs is inevitable, whether it be slow or fast.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their ain inquiry when making a decision.

The views, thoughts and opinions expressed here are the author's lonely and practise not necessarily reflect or represent the views and opinions of Cointelegraph.

Insight is an NFT writer and community managing director for a project named The Boring Ape Chronicles. In addition to his passion for Web3, he is an avid football fan.