What’s next for tokenization?

Tokenization has always been a concept that fascinates me. It may not seem complicated, but whenever something comes out in tokenized form, the mind share immediately turns to it.

This article summarizes the details of some of the tokenization trends we have seen so far, how they are playing out, and what might happen next:

1. Tokenization of assets

The initial tokenization trend.

• Bitcoin created the first decentralized, secure, and transparent ledger system, paving the way for the digital representation of assets.

• Then, in 2015, Ethereum came along and introduced smart contracts , making assets programmable — whether it be real estate, art, or DeFi.

ETH’s current FDV is $470 billion . This is the scale of the impact that tokenization will have on an asset.

2. Tokenization of Art (NFTs)

The rise of NFTs has brought tokenization to the art world.

• In 2017, projects such as CryptoPunks and CryptoKitties sparked the NFT craze.

• By 2021, NFT trading volume reached $13 billion as NFTs became the preferred way to represent digital art and collectibles.

• Many collectibles, such as CryptoPunks, BAYC, Art Blocks, etc., cost millions of dollars at their peak in 2021.

3. Tokenization of Revenue

Another major shift is the tokenization of earnings.

• Pendle pioneered the idea of ​​tokenizing future earnings in 2021.

• It creates a market where fixed and variable returns can be traded, adding flexibility and liquidity to DeFi.

• Pendle really takes off in 2023 with LSTs (liquidity staking tokens) and the points market in early 2024.

Today, the FDV of PENDLE tokens is $1.6 billion.

4. Tokenization of AI Agents

Now we are seeing the tokenization of AI agents .

• Virtuals launches a platform where you can create AI agents and tokenize them, effectively directing the costs of their development.

• The AI ​​Agent Narrative begins in October 2024, with Virtuals creating a marketplace for agent ownership.

Fast forward to today: the FDV of the VIRTUAL token has reached $2.5 billion .

5. Trend Discovery

Across all of these categories — assets, art, income, AI agents — the pattern is clear: pioneers in each category tend to experience rapid adoption and significant price activity.

So, the big question is: what’s next for tokenization?

Here are some thoughts on what I'm observing:

6. Data Tokenization

• Vana is exploring DataDAOs and Data Liquidity Pools (DLPs) .

• Users can contribute data to these pools, retain ownership, and receive rewards based on the quality of their contributions.

• Essentially, it transforms data into a liquid, tradable asset .

VANA tokens will be launched on December 16 (listed on Binance). Be careful though, as the exact FDV is not yet clear, but the idea of ​​tokenized data ownership could be a very big idea.

7. Tokenization of Attention

• Kaito AI is working on the tokenization of Web3 attention . They have demonstrated the ability to generate and capture more attention through their platform mindshare dashboard and more recently Yap-to-Earn.

• Their “ Yapper Leaderboard ” incentivizes thought leaders to “yap” more, earn “Yap” points, and ultimately receive KAITO token airdrops.

Basically, Yap = Attention = KAITO tokens .

This is an interesting game about how Web3 redefines user stickiness.

8. Tokenization of AI Apps

This feels like a natural extension of the trend toward AI agents.

• With tools like Replit and the rise of an ecosystem of intelligent agents, we are one step closer to creating personalized software.

• Tokenized AI apps allow users to guide development and own a portion of the app’s revenue.

Competitors in this field:

• ALCHEMIST AI and Myshell are the main competitors. Both platforms enable developers to build revenue-generating AI applications , providing practical and scalable use cases.

• Myshell goes a step further by allowing investors to invest directly in these applications and receive a share of the future revenue generated. This model not only supports development, but also aligns the incentives between creators and investors.

9. Final Thoughts

Tokenization trends always generate new waves of innovation and adoption. But what people are fascinated about tokenization trends is not just the technology - it’s how they bring people together and focus on new opportunities.

What will be the next big trend in tokenization? I’m not sure, but these are ideas worth keeping an eye on.