Non-Fungible Token (NFT) is the next big thing in Crypto World: Why?
On NFTs (non-fungible tokens), everyone has an opinion. Some people think of them as merely another passing trend. Others see them as the cryptoverse's next superstars. Whatever your stance on this issue, there's no doubting that digital collectibles like these will continue to influence the cryptocurrency market in 2022 and onward. In early 2021, digital artist Beeple sold an NFT of his artwork: The First 5000 days for a record-breaking $69 million at Christie's auction. That watershed moment triggered a torrent of news concerning non-fungible commodities such as crypto art, NFT avatars, real estate, and GameFi. NFTs were such a popular issue in 2021, whether in mainstream publications or on major social media platforms, that the Collins English Dictionary named the acronym the word of the year. Aside from its influence on the general public, NFTs have created a whole new universe for blockchain technology, with breakthroughs in smart contracts, the Ethereum blockchain, and many others.
The popularity of NFTs shows no signs of decreasing as additional uses for the technology are developed. We've taken a snapshot of the current and hottest trends that we're likely to see more of in 2022 and onward to give you an indication of where the market may move.
• NFT transforming the Gaming Industry:
Massive breakthroughs for NFTs occurred in the gaming sector recently. GemeFi, often known as "NFT gaming," aided NFT development by offering blockchain-based play-to-earn games. These games reward their players with in-game NFT assets. P2E (Play-to-Earn) games such as "Axie Infinity" and "God Unchained" caused havoc in the gaming industry in 2021. These blockchain-based games enabled users to earn real money by simply accumulating and exchanging their NFTs because they entirely own them. Similarly, they can readily move their NFT assets to an NFT marketplace for selling or trading.
Currently, Axie Infinity is by far the most popular game, with a market value of over USD 1 billion. This game centers on Pokémon-like animals known as "Axies," which are NFTs with a unique set of skills. This online game has an in-game token called AXS (Infinity Shard), which can be used to exchange NFTs on the Axie Infinity network.
As a result, games based on NFTs are progressively taking shape. Here is a list of the top Play 2 Earn games that will be the greatest and most popular NFTs for 2022. Source: coinmarketcap.com
- Axie Infinity
- Gods Unchained
- The Sandbox 3D
- Alien Worlds
- Battle Racers
- Sorare — Fantasy Football
- Star Atlas
- NFT Champions
- Spider Tanks
- The Walking Dead: Empires
- MAD Metascientists
- Gold Fever
- Sidus Heroes
- Cosmic Champs
- Thetan Arena
- Untamed Isles
• NFT transforming the Music Industry:
The use of NFT has also impacted the music business. It's no secret that musicians are struggling to make ends meet under the traditional system, with artists earning cents per stream. More and more independent bands or musicians are opting for non-fungible tokens (NFTs) as a new business model that allows them greater creative flexibility.
More NFT albums and songs look to be trended in 2022 and onward
Band Royalty NFTs, allow music fans to receive a portion of the revenue generated each time a song from the platform's collection is played. Band Royalty is said to have 3,000 NFTs on its platform, with a long-term objective of having 12,000 NFTs in the next 18 months.
StereoheadZ NFT is a platform for live music and broadcasting, that allows singers to legally broadcast live performances as well as play their music from Apple Music and Spotify. Platforms like Stationhead will exist in and throughout the metaverse, allowing listeners to interact and share their music. Blockchain-based NFTs will reward fans who follow a band or track royalties for artists.
• NFT bring revolution in Tv/Film Industry:
The recent corona pandemic caused significant global changes in every field of life including the film or creative industry. One prime example is a shift in the way movies are released and monetized. You've probably seen big movies move straight to streaming, which has completely transformed the content distribution landscape. Aside from movies, the television business is changing due to streaming.
However, crypto experts think that non-fungible tokens are the next frontier that will change the way content is utilized in the TV/film business. By owning an NFT, you would be able to get access to a TV show/movie. Several TV/movie ventures are already using NFTs to earn money and solicit cash online.
Let's take a look at a few TV series that will be the most popular NFTs to watch in 2022.World of Women
- Stoner Cats
- Gen Zeroes
- Domination X
• NFT: Spicing up Artwork
Spicing up real-world artworks is one of the most visible developments in the NFT market, and it has the potential to bridge the gap between conventional art and the new redefined form that NFTs first presented. The art industry has long been linked with attractive investment options. However, high entrance hurdles have been a deterrent to regular investors. Investing in Picasso or Rothko may provide huge returns, but how many people can afford them realistically?
The connection between pop art and NFTs is evident; so, it should come as no surprise that one of the first artworks tokenized was produced by a real modern pop star - Banksy. In 2020, one of his "Pink Masked Gorilla" artwork was extracted from the building in Bristol and tokenized into 10,000 fractionalized NFTs. Each was sold for $750, allowing an average customer to own their one-of-a-kind sculpture produced by one of our time's most significant artists.
• NFT is used by charity Organizations for fundraising:
As the world gradually realizes the advantages of tokenization, charitable organizations are beginning to investigate the possibilities of NFTs. NFTs may assist in the establishment of charitable efforts in a decentralized manner with less operating cost than traditional auctions.
Using smart contracts with NFTs opens up even more charity opportunities since these algorithms can program NFTs to automatically donate monies to a good cause with each transaction. Blockchain technology secures NFTs and smart contract algorithms by providing a transparent, publicly traceable database that ensures donations reach the designated charitable organizations. Furthermore, charitable donations done using cryptocurrencies have cheaper transaction costs and near-instant reimbursements.
The owner of Visualize Value, Jack Butcher, established an NFT fund to assist Afghan families hit by the current humanitarian catastrophe. Each NFT was priced at 0.028 ETH at the time and could cover a family's emergency requirements for a full month.
The ImpactNFT Exhibition in Hong Kong also features NFTs for good. The featured digital artworks were created around the United Nations' 17 sustainable development objectives, allowing collectors to appreciate and acquire NFTs to promote awareness.
Similarly, Ellen Degenereshas also hosted a series of NFT auctions, generating $33,495 and giving the proceeds to the World Central Kitchen, a food-relief organization.
NFT-infused charitable activities, however, are still in their development. Given how NFTs are addressing some of the underlying faults with the present system, similar projects are likely to gain traction in the future.
• NFT also performs its actions on Social media:
There has been significant talk on the blockchain blogosphere regarding the likelihood of Twitter, Instagram, and TikTok mixing in the NFT realm in their ways – a well-received and highly-anticipated upgrade by social media aficionados.
Twitter has verified that NFTs may be used as profile images. You may use an NFT as your profile image after establishing a temporary link to your crypto wallet. Your digital asset is configured to show in a distinctive hexagon that identifies you as the NFT's owner. This is supposed to alleviate the worries about identity and NFT theft that have been circulating on the site.
Instagram is also taking selfies to new heights, with CEO Adam Mosseri saying that the business is currently researching NFT use cases.
• Big Brands start using NFTs for their Promotions:
The success of smaller ventures ultimately draws in the best in the world is a well-known trend for new technological solutions. Without a doubt, NFTs are not an exception.
As more and more brands are beginning to investigate the potential that NFTs may provide. So far, the dominant sectors are fashion and, quite unexpectedly, food.
Limited digital collectibles have previously been issued by Gucci, Louis Vuitton, McDonald's, and Taco Bell. Minting NFTs helps large corporations to boost brand recognition and consumer engagement.
What's more, such ventures aroused the curiosity of many NFT holders. Pringles, for example, released a limited assortment of NFT crisps with "virtual taste." The tokens, which were limited to 50 variants, were offered by the corporation for the price of a standard pack of crisps - $2. However, their current pricing on OpenSea and Rarible is roughly 4 ETH.
• Fashionable or Personality NFTs are in Style today
To better position themselves for success, fashion and retail businesses may create a target market that can connect to and feel at ease engaging with their future offerings by taking NFTs to the next level.
The Super Gucci NFT was introduced as a consequence of a ground-breaking collaboration between Gucci and Superplastic. This relationship provides an unstoppable digital force to runway enthusiasts and trend-setters.
The Super Gucci NFT was unveiled by Gucci, a well-known fashion juggernaut and equally upscale fashion architect, in collaboration with Superplastic. It is anticipated to be available on an Instagram-ready device soon.
• Taking out Loan using NFTs
Although play-to-earn games and excessively costly cartoon profile images may seem to be the only worthwhile possible use for NFTs, there are many more. NFT loans are one upcoming use case. Investors are utilizing their NFTs and NFT collections as collateral to get loans for unexpected expenses and new prospective ventures, putting them to use.
In 2021, several DeFi (decentralized finance) platforms were introduced to make it easier to arrange loans using NFTs as security. For instance, Arcade is a DeFi platform that provides loans with NFT backing. Before the collection is locked in an escrow account supported by an Arcade smart contract, the borrower and lender must first agree on the conditions. Until the loan is fully repaid or defaults, the NFT(s) are locked up and unrecoverable.
NFTfi, a marketplace where users may provide loans to other users or take loans as collateral for NFT assets, is a well-followed DeFi platform for NFT-backed loans. Any ERC-721 token may be pledged as security in return for an ETH loan. The NFT is returned to the borrower when the loan has been repaid. The asset is given to the lender if the loan is in default.
The Bottom Line
Most definitely on the increase, NFT ownership is fast revolutionizing how we interact with digital art and the blockchain. As the technology progresses from simple and experimental use cases to more substantial ones, the potential for NFTs is endless. New NFT projects with creative applications are appearing even as you read this article's conclusion; the possibilities seem limitless.
Want to build your Blockchain application?
If you’re ready to understand how your business can leverage blockchain to disrupt your industry, Decodermind is happy to help. Get in touch with us for more information on our blockchain development services.