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nft trends

Hottest NFT Trends You Need to Be Aware Of

NFT investors became a bit worried about their investments after seeing a sharp decline in the sales of NFT in the first half of 2021. But NFTs again gained momentum when some high-profile celebrities and companies like Coca-Cola, Visa, and Budweiser started buying existing NFTs rather than creating their own.

The participation of bigger brands has once again proved that NFTs are here to stay. The recent development of metaverses has also strengthened the NFT marketplace significantly.  Fractionalized collectibles, generative artwork, and gaming objects are some of the leading NFT trends these days.

Club Memberships

Club Membership is one of the leading NFT trends that have ignited the second wave of NFTs. Bored Apes Yacht Club is the leading participant in this category. It’s a collection of 10,000 unique digital collectible ape avatars that have now become a status symbol. The owners of these NFTs use these avatars on their Twitter profiles to show that they’re now part of the community.

They also get access to a Discord group where they can communicate to the other owners of bored apes NFTs. Unlike other NFT owners, Bored Apes Yacht Club members don’t feel lonely as they get to share their experiences with other members of the community. And they also get to interact with the celebrities that have purchased one of these avatars.

Moreover, they can also get access to owner-only merchandise drops. So, these digital collectibles are offering a lot more as compared to cyberpunks.

Gaming NFTs

The gaming industry has played a vital role in boosting the use of cryptos and NFTs. Gaming NFTs are leading the recent NFT trends with some incredible developments. The Ethereum-based Axie Infinity is one of the leading games that has generated the highest transaction volume compared to any other NFT collection so far.

The main characters of this game are NFTs that players need to purchase before they can start playing the game. The players can earn rewards in the form of crypto tokens after beating their competitors. In some countries, these rewards can be good enough for living a comfortable life.

Although the users have to pay several hundred dollars before they can start playing the game, the user-base of this gaming project has significantly increased and more than one million users now participate in this game every day.

Supdrive is another popular video game NFT project that is introducing a unique concept in the NFT marketplace, mainly focused on converting all the available NFTs into playable video games.

NFTs in Metaverses

Metaverses have significantly increased the value of NFTs over the past few months and have proved that NFTs are going to play a vital role in the future of the digital world. Some metaverses are selling virtual pieces of land by converting them into NFTs.

In most metaverses, owning land is mandatory for accessing different features of that particular metaverse. Similarly, the avatars, clothing items, shoes, hair, and several other objects are available in the form of NFTs the users can purchase in these metaverses.

Many big companies are going to run their business operations in these metaverses and some popular institutes are also acquiring virtual lands in these metaverses to establish their campuses. Metaverses are the future of the internet and will attract a huge number of users over time which will automatically increase the demand for NFTs.

Fractionalized NFTs

As the name suggests, fractionalized NFTs are the pieces of an NFT that are being sold in the NFT marketplace. The standard NFTs have now become so expensive that an average user can’t afford to buy them. So, a few companies came up with the idea of selling small pieces of an NFT after buying it from the marketplace.

The idea sounds like owning the shares of a company, but the experts say that the fractionalized NFTs are somehow close to unregistered securities. However, it’s not preventing the investors from participating in this trend. In fact, this trend is rapidly growing because it’s supposed to be a great alternative to an expensive option.

Fractionalized NFTs are giving everyone the opportunity to buy an NFT even if they can’t pay the full price of the NFT.

Big Brands are Stepping in

In the first wave of NFTs, the bigger brands tried taking advantage of the rising trend by minting toilet papers and tacos into NFTs. But in the current wave, bigger brands like Visa and Coca-Cola are purchasing the existing NFTs instead of creating their own.

Visa recently added a CryptoPunk NFT into its “historic commerce artifacts” collection. The NFT cost around 50 ETH (i.e $165,000).

Budweiser also purchased a beer rocket NFT worth $26,000 from the NFT market and they’re now using it as their Twitter profile picture.

Coca-Cola also launched its first-ever NFT on the OpenSea marketplace in July 2021. And the company is going to list four more NFTs over the coming months.

Generative Artwork

Generative artwork is a great combination of art and technology as the blockchain creates a block or a set of blocks when an NFT is generated. These blocks are the perfect pieces of art that can be traded on the NFT marketplace.

Ethereum took the initiative of listing these artworks on the NFT marketplace and it worked very well. The community welcomed this step by investing around $583 million in the generative art blocks within a short span of time. It has now become one of the leading trends in the NFT marketplace.

Conclusion

After a sharp decline in the first half of 2021, the NFT marketplace has reversed with more strength. The NFT marketplace is now showing some unique trends that are defining the true value of this market. The gaming industry, metaverses, and generative artwork are some of the amazing NFT trends that have changed the dynamics of this industry. In this article, we’ve discussed the hottest NFT trends you need to be aware of.

If you need more information about these NFT trends, feel free to contact us.

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Would You Buy a Non-Fungible Token? Understanding What You’re Buying

The odds are you may have heard about non-fungible tokens or NFTs lately. People are selling these NFTs to others and are making significant amounts of money from these sales.

NFTs entail sales for various virtual objects, from videos and audio files to social media messages. But while you can buy an NFT, that doesn’t mean you’re going to own something outright and prohibit people from buying or selling that item.

The concept of the NFT is confusing in itself. What is an NFT, and why would someone buy the rights to that video of a guy skateboarding while drinking cranberry juice with Fleetwood Mac playing in the background? Here’s a brief guide to help you get through the clutter.

What Is An NFT?

A non-fungible token or NFT is a digital ownership certificate. The token states that you are the sole possessor of a digital item. The digital content could be anything from a GIF to a message on Twitter.

The digital content can still be copied and reproduced as people wish. But by owning an NFT, you are confirming you’re the owner of the original copy.

You can prove your ownership because the NFT links to a blockchain. The blockchain will record your transaction and confirm you are the original owner of something. Each NFT has a unique blockchain that traces the ownership of the item.

Each NFT works on the Ethereum blockchain system. The Ethereum setup provides a decentralized approach to tracking data.

In short, you will claim by buying an NFT that you are the owner of something. But that doesn’t mean you are the only person who can use that item. There is still a potential for the value of your NFT to rise after a while, although there are no guarantees this will happen.

What Does An NFT Cost?

The value of a non-fungible token will vary surrounding whatever you purchase. Some groups have been selling NFTs for cheap. The National Basketball Association has an NFT product called Top Shot that lets you trade digital cards that play videos. People can purchase digital cards highlighting their favorite NBA players. These cards work as NFTs and are available for a few dollars.

But some NFTs can end up becoming extremely valuable. Some digital cards in the NBA’s Top Shot program have traded for tens of thousands of dollars. These include cards showcasing LeBron James, Ja Morant, and Zion Williamson laying down slam dunks.

The most noteworthy example of a high-value NFT comes from Everydays: The First 5,000 Days, an image file created by an online artist known as Beeple. The NFT sold at an auction for $70 million. Twitter CEO Jack Dorsey also sold an NFT of his first tweet on the platform for a few million dollars.

Are These NFTs Functional?

There’s a potential that many NFTs may be functional for things other than collecting. The NBA’s Top Shot NFT program may be utilized for gaming purposes soon. The NBA hopes these NFTs can be collected and used by people in upcoming tournaments for a planned mobile game.

Another example comes from filmmaker Kevin Smith announcing that his next film will be sold as an NFT. The move assumes that the only way people can watch his movie is if people purchase copies of that film as NFTs.

Intellectual Property Worries

As intriguing as NFTs may be, there is a worry surrounding intellectual property law. Many NFTs infringe upon intellectual property rights, as people are creating NFTs out of things they did not create.

For example, a person could take a piece of art someone created and posted online and then sell it as an NFT for one’s profit. The original artist might not have any control, nor would that person get any money from the sale.

There is no stopping people from engaging in intellectual property violations at this moment. People could accept NFTs as being viable if there was a way to keep these violations under control. How this point will work remains unknown.

People who create these NFTs can still respectfully alter their content to keep any properties they don’t own from being visible. You read earlier here about how someone could buy an NFT of a viral video showing a man skateboarding while drinking cranberry juice. That video was sold as an NFT for about $500,000. But the Fleetwood Mac song that was playing in the background is not included. The Ocean Spray brand name is also obscured from the cranberry juice bottle. These were removed to avoid any potential legal issues surrounding the band or the juice company.

The Negative Environmental Impact

One concern surrounding NFTs involves the environmental impact of these tokens. An NFT is stored on an Ethereum-based blockchain. The NFT will remain active as the Ethereum system continues to operate.

But the increasing rise of blockchain technology has required additional processing power to ensure all chains stay functional and active. The processing power produces significant amounts of energy. The effort triggers a substantial carbon footprint as a result.

The Ethereum system is planning on moving to a new power system later this year. The new setup will produce less energy, although it’s unclear how much of a reduction will happen. The negative environmental impact that NFTs could have on the world could keep it from being taken seriously in some places. It could keep NFTs from becoming more mainstream.

Should You Buy An NFT?

NFTs can be interesting and unique investments. But there are also problems surrounding how they will be accepted worldwide. It is hard to predict where the NFT market will go in the future.

You can buy an NFT if you wish, as many of them aren’t as expensive as you would assume. But be cautious when doing so, as purchasing an NFT can be risky. There are no guarantees the value of whatever you’re purchasing will rise. There’s also the potential someone might break ownership laws with an NFT.