Since 2014, Non-Fungible Tokens (NFTs) have existed. But it wasn’t until 2021 that they became famous as a way to buy and sell digital art. Since the 17th century, when NFTs began to sell like Dutch tulips during what became known as the “tulip frenzy,” some of the NFTs have sold for millions of dollars!
CoinSwitch can help you find the tokens you need to acquire NFTs if you want to take advantage of their newfound popularity. But, before you do anything else, it’s always a good idea to know what’s going on and what’s causing the boom.
A reminder of what an NFT is in need of. NFTs are digital assets that represent real-world objects such as art. They are based on blockchains and encoded using the same software as many other cryptos. To distinguish one NFT from another, it has a unique identifier code and metadata.
The connection to the metaverse and celebrities hopping on the NFT bandwagon have all contributed to the rise of NFTs. And the popularity of NFTs has grown, with several well-known brands raking in millions of dollars. The Bored Ape Yacht Club (BAYC), The Sandbox, and CryptoPunks are just a few ventures that have changed the NFT business in terms of both creativity and profitability.
On the Ethereum blockchain, BAYC is a collection of 10,000 Bored Ape NFTs. Yuga Labs, the company behind the BAYC, has raised $450 million in a funding round headed by Andreessen Horowitz, bringing the business’s valuation to $4 billion. According to the team, the funds will be used to fund the Otherside metaverse project.
CryptoPunks is a collection of 10,000 algorithmically created tokenized and pixelated images popularly known as the OG NFT collection.
The Sandbox is a virtual environment built on the Ethereum blockchain that allows gamers to create, own, and monetize their gaming experiences. Players can upload, publish, and sell their NFT creations generated with VoxEdit in the Sandbox. It allows creators control over and access to the platform’s assets.
Trends in NFT that have the potential to impact the world
Whether you agree with NFT or not, some of the forthcoming trends in this space have the potential to alter how we use the internet.
Digital art collectibles: Through NFTs, any artist can broadcast or sell their work directly to interested customers. This allows them to earn the best possible price for their work. Smart contracts can also help artists profit from royalties paid in NFTs.
Casting of NFT avatars
NFTs have the advantage over typical IP development in that you can own a piece of a larger brand and profit from it. NFTs like Bored Ape Yacht Club and StereoheadZ allow users to mint their own work for the group, giving a community of artists, animators, and musicians a new sense of creativity.
The personality Avatars for Jace Kay’s NFTs band were sourced from the community, and monies were repaid to those artists. It also helped that a previously unknown rock star was a member of the StereoheadZ Music Club.
Expect more of this “Avatar Casting,” as Kay refers to it, to take off in 2022. He and the BAYC are working on a number of initiatives, and members can utilize their Bored Apes or StereoheadZ in exchange for a piece of the revenues. This connects into another 2022 NFT trend…
Branding that belongs to the community
Giving a community IP control so they can “take and spin into new directions that the parent brand would never have done before” adds value, according to Kay. Using a blockchain and NFT, an artist can obtain primary and secondary resell rights, ensuring that they are always compensated for future use of their work. Losing control of an IP allows for expansion and creativity, and artists are compensated for their contributions and efforts at every step.
“Take Bored Ape Yacht Club as an example,” Kay adds. “It was nothing before May , and now it’s almost one of the greatest brands in the world, with Adidas and other partners.”
Will Disney and other big brands share their intellectual property with NFT communities? Not likely, but huge firms will resort to NFT communities and groups to promote new items, therefore this approach to community-led marking and branding will find a home. Your art may be fronting a Coke ad next Christmas if you make a Bored Ape and put it up for avatar casting.
Ethereum 2.0 will address the issue of energy consumption.
The massive carbon footprint generated in the production of NFTs is the bored elephant in the room. On the Ethereum blockchain, a single transaction consumes as much energy as a typical household consumes in a day and a half. Ethereum is “burning energy,” according to Kay, “like driving a car with your foot on the accelerator and the brakes on.” “It doesn’t have to be like this.” It’s also changing. Ethereum 2.0 will be released gradually next year, and it will make a significant difference.”
Kay explains how Ethereum’s existing “pipe” isn’t big enough to handle the vast number of people that want to use it, thus you have to pay increasing fees to utilize it. Ethereum 2.0 will widen that pipeline, lowering expenses. Ethereum 2 will reduce fees, increase output, and increase the value of non-fungible tokens generated on the blockchain.
Gaming and tokenization
This is a significant issue. NFTs will shift their focus from promoting art to functionality in the coming year. Whether it’s gaming or gaining admission to exclusive communities (tied to avatar casting and marketing for Web 3.0). We’ve already seen this in video games. With AAA companies like Ubisoft investing in a blockchain to allow gamers to purchase and unlock goods with real value. Another ‘play-to-earn’ adopter is Axie Infinity, which is currently valued at “$6 billion” and where players may earn $15 per hour via NFT prizes.
“A lot of the NFT initiatives are trying to do tokenization, which is basically extracting more value out of it,” Kay explains. These tokens can also be bought and traded on the secondary market. It has a lot of power if you execute it correctly.”
Apple is the starting point for the metaverse.
Mockup of the AR/VR headset by Apple Insider
In 2022, the metaverse (read our explanation of what the metaverse is) will actually begin, and NFTs will be at the center of this immersive technology. The benefits of blockchain, cryptocurrencies, and NFTs will be offered directly inside the metaverse, bypassing the jargon-heavy entrance barriers. Kay, on the other hand, believes it all starts with Apple and its seamless approach to UX and UI.
App Store for NFT
“The crucial thing is that, like with the App Store, it’ll be Apple and their appropriate hardware that pushes things to the next level,” Kay explains. The snag could be the Apple VR headset’s rumored price tag, which is expected to cost approximately $3000 for high-end AR/VR technology. Could 2017 be the year that Meta/Facebook and Oculus take the lead in VR headsets? Not in Kay’s opinion, who has little faith in the social media behemoth.
“Not only is [Meta] behind the curve, but they’re on the wrong side of it as well. They’re going to wreak havoc on the metaverse. “Meta is a formula for disaster,” Kay says, adding that the metaverse would be a decentralized mix of apps, events, venues, and platforms rather than a single entity. “Facebook will constantly attempt to make it their metaverse, and you can sell your NFTs in it,” he says, adding, “but it will be centralized, and we can’t allow that to happen.”
Web 3.0 is going to be huge.
NFTs and venues like Decentraland benefit from Web 3.0.
“NFTs are built for Web 3,” Kay explains. In worlds and games like Decentraland and Fortnite, Web 3.0 is about “having ownership and obtaining benefits,” as opposed to prior iterations of the web, which were centered around reading (viewing data) and reading and writing (social media and experiences). The internet’s progress and that of NFTs go hand in hand, and it’ll genuinely take off in 2022.
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NFTs in music will take control.
Stationed and other social music services will take over the radio.
In 2022, music and NFTs will be significant, especially Napster. With other Bored Apes, Kay has founded the virtual band The NFTs, and there will be more to come. However, in the music industry, NFTs will be more widely used. To convince streaming services like Tidal to implement music NFTs. Jack Dorsey stepped down as Twitter CEO to head Block (previously Square).
Stationed, a live music and the broadcast platform is Kay’s other project, in addition to the StereoheadZ NFT – a decentralized music label and community. It’s legal to use Station head to broadcast live performances and even stream music from Apple Music and Spotify.
Listeners will be able to drop in and speak or release their music on platforms like Station head and throughout the metaverse. On the blockchain, NFTs will be used to reward fans of a band or track royalties for performers.
Kay’s group Fans who support the band through the StereoheadZ Music Club NFT can receive incentives and even be cast in future song videos, according to Kay, who says the animators for a future music video will be sourced from the SZMC.
The BAYC party, for example, will be supported by NFTs.
“Real-world encounters are another thing that’s starting to happen. But it’s pleasant and tied to the kind of use you get,” Kay explains. If you donate to an NFT project, you are investing in a community. And one of the benefits will be regular events for holders.
The NFT holders of the Bored Ape Yacht Club have already begun with a 2021 NYC celebration that saw 2,000 BAYC NFT holders assemble in a secret warehouse site to witness Beck, Chris Rock, and a specially reformed version of The Strokes perform. “These IRL [in real life] events will undoubtedly be a massive, massive thing.”
Digital ownership and tagging
Currently, we talk about NFTs giving artists and creators ownership of digital content. But everything will have an NFT in the future, according to Kay. “Right now, we’re talking about art and music,” Kay adds, “but we’re also starting to talk about seeds, about buying food […] anything you buy will have a digital footprint that lets you know who owns what.”
Consider this scenario: If Adele buys a sweater and then sells it. You’ll know it’s Adele’s sweater, and it’s worth will rise. “It’s starting to happen that tangible goods and experiences will have digital tags attached. It allows for many more fascinating things to be built with openness.”
Personality NFTs are on the rise.
In 2022, more musicians will appear as NFT personalities.
“I believe we’ll start seeing more of these NFT characters this year ,” Kay predicts. Apps that allow artists to perform as an NFT personality rather than themselves will be available. Kay is aware of a Snapchat app now under development that enables users to be replaced by a Bored Ape. “It appears to be real,” he says. “It’s fairly incredible.”
In 2022, musicians and celebrities are likely to acquire NFT personalities. It’s already occurring; musician Teflon Sega only exists in the Metaverse as a performer. But more well-known celebrities are expected to embrace the anonymity of performing for a small group of admirers under a digital persona. This began with Gorillaz and will be carried to new heights in 2022.
Even if the average NFT selling price is only a few hundred dollars. It’s still a potential business to watch (especially if you’re into collectors). Not only are thousands of NFTs sold every day. But there is a desire for a wide range of different varieties. Almost anything may now be transformed into and marketed as an NFT. From “conventional” digital art to album covers, tweets, and memes. It will be intriguing to watch what the future holds for NFTs. Given how much this specialty has changed in just two years and the massive growth in 2021 alone.
We can see that NFT trends are going to increase. It is the best time for entrepreneurs to invest in the NFT market or create a product based on NFT. If you are considering to Hire NFT Developer, you can consider top NFT development companies like Suffescom, RisingMax, etc.