Following the dawn of blockchain and cryptocurrencies, another trending topic took to the stage: NFTs. Basically, NFTs, or non-fungible tokens, are digital assets ranging from images to videos that can be purchased and sold. Similar to cryptocurrencies in nature, NFTs can not be exchanged with other NFTs as they’re unique and one of a kind. What’s more, since these assets exist on the blockchain, their owners and validity can be easily tracked online.
While these assets have long been known around the blockchain circles, they’ve become mainstream around 2017 with the launch of CryptoKitties where players could purchase NFTs, join in on the game, and breed, adopt and trade virtual cats. Following the interest in NFTs, the market witnessed a huge spike in popularity around January 2021. Due to the fact that NFTs are easy to verify and trade, these cryptographic assets quickly began to be recognized as the keys to the digital communities and ecosystems that are now collectively known as the Metaverse.
While these NFTs will be crucial once we step into the Metaverse, they’re currently used by many to be a part of private groups and communities that revolve around the digital art scene. According to the statistics, there are around 30,000 NFT projects only on Ethereum with many more in other blockchains.
Not only those native to blockchain but many celebrities have also joined in on the NFT craze including Elon Musk, Serena Williams, Eminem, Travis Barker, Timbaland, Jimmy Fallon, Gwyneth Paltrow, and many more. While some have developed their own NFT projects, others have purchased from high-profile projects such as the Bored Ape Yacht Club, Crypto Punk, etc.
With all the hype surrounding the NFTs, are they here to stay or just a passing trend? Below, we’ve listed some key reasons why we think NFTs will be fundamental for our future.
Since the world is turning into one big Metaverse, everything’s inevitably going digital. While the idea itself has evolved and progressed over the last decades, Metaverse has become a reality in the last few years. Currently, there are various independent metaverse platforms available to users with many new projects on the way. As this is the case, our whole ideology revolving around art will become digitalised as well. NFTs make up the very heart of the futuristic art wave that’s amassing millions of dollars in revenue even before the expansion of the Metaverse among public users.
If the popularisation of the Metaverse continues at this speed, which it will, NFTs will become increasingly critical in this brand-new setting. This means NFTs are not going anywhere anytime soon. To put it in numbers, 23% of American millennials own NFTs. The younger generation is more open to the idea of NFTs which will inevitably influence the future.
Though NFTs have been at the center of an art frenzy, these digital assets are more than what meets the eye. While many discard NFTs as hype due to their popularity, these digital art pieces stand out thanks to their utilities. With celebrities and big names investing in the trend, many projects are becoming unavoidable.
Good examples of popular projects that are backed by venture capitalists and investment banks include the Bored Ape Yacht Club, Lazy Lions, and Doodles. While NFTs’ popularity keeps rising at its current speed, it’s only a matter of time before the NFT marketplace turns into a common stop for the public on the internet.
As the money of the digital age, cryptocurrency has received widespread acceptance. But what can you purchase using this currency? NFTs serve as the means of indicating ownership of digital assets. It may be digital real estate, art, or fashion. According to Mark Zuckerberg, the founder of Meta, the Metaverse is expected to someday displace the internet as a whole.
Since NFTs are crucial to the success of metaverse ventures, the technology underlying them won't just go away. Examples like the Axie Infinity GameFi project and the transformative effect of NFTs on gaming are already in the public domain. In other words, NFTs are essential to the objective of creating a unique virtual environment.
NFTs offer a huge potential for profit. Some NFTs have been sold for millions of dollars. While it's true that not every NFT will be valuable, this is no different from the long list of unsuccessful crypto projects that have emerged over the years. Having regular exposure to NFTs is an excellent approach to diversifying your portfolio and raising your chances of earning a good income.
By purchasing an NFT, buyers and artists may collaborate on the development of new works of art and the promotion of fresh initiatives. The creative industry has seen the highest increase in success as a result of the arrival of NFTs. Since they were able to raise the value of their creations, independent artists have thrived.
These self-employed artists are not just existing web browsers. A good example could be Ross Ulbricht, the creator of the Silk Road, who started an NFT collection, with the goal of advancing the movement for U.S. jail reform.