A closer look at the NFT Revolution: Trends, Projections & The Future
You’ve probably heard all about NFTs, the latest rage in the crypto space. Basically, an NFT, or a non-fungible token, is a crypto asset that represents intangible digital items such as images, videos, in-game items, etc. They’re not the only type of NFTs though. From photos and films to audio and much more, any type of digital media can be represented as an NFT. In simple terms, you can say that NFTs are digital files supported by blockchain technology, the same technology that underpins prominent cryptocurrencies like Bitcoin and Ethereum.
Unlike cryptocurrencies, however, an NFT is one-of-a-kind, and the blockchain ledger on which it is stored certifies who the true owner of that one-of-a-kind object is.
Generally, NFT marketplaces have come to be associated with purchasing/owning digital artwork since they give investors and collectors ownership of the original digital piece while retaining copyright and reproduction rights for the artist. While this may appear to be a very niche use case for NFTs, they have also come to represent a significant shift in the way customers buy and sell digital assets such as music, downloadable content for video games, and movies. The fact that smart contracts ensure publishers, artists, and content providers are compensated each time an NFT is sold has made them all the more preferable for artists from various industries.
So, what’s the historical background of NFTs? Why are they so popular? How much is the NFT market worth? And do they have a future?
We’re sure these are some of the questions you have. Read more to find out.
NFTs — A background
In June 2017, CryptoPunks became the first-ever NFT to be released on the Ethereum network. But back then, they were just some non-fungible tokens with little recognition outside of the blockchain community. It wasn’t until 2021 that the NFT boom began.
Nonfungible.com estimates that more than $2 billion was spent on NFTs in the first three months of 2021, up by a massive 2,100% from the fourth quarter of 2020.
While several people consider NFTs to be only a passing trend that will soon die out, many analysts believe that NFTs will continue to increase in the future. In fact, according to a Forbes report, about $174 million has been spent on NFTs since November 2017.
Why are NFTs so popular?
One of the primary reasons for the rapid explosion in the popularity of NFT’s can be attributed to how it changes the value proposition for creators. Thanks to NFTs and NFT marketplaces, artists can now get more returns on their works instead of engaging the help of a publisher, gallery, or record label to commercialise their creative works. NFTs have also played a major role in breaking down the paradigm shift between consumers and artists.
With NFTs skyrocketing in value and popularity, owning them is gradually becoming mainstream culture, even a status symbol to some level, all thanks to the growth of crypto-rich millionaires and deep-pocketed investors.
Additionally, NFTs are no longer exclusive to the art world, which has led to an increase in demand. As NFTs have expanded their horizons, they now include music, films, sports, and gaming.
How much is the NFT market worth?
Given how we’re all living through the NFT boom, it comes as no surprise that the NFT market is worth a lot. After exploding in popularity earlier this year, sales volumes have remained as high as ever. According to Fox, NFTs saw a massive $2.5 billion sales volume in the first half of this year, up from $13.7 million in all of 2020.
Currently, three NFT projects have more than $1 billion market caps: CryptoPunks, Bored Ape Yacht Club, and Art Blocks Curated.
- CryptoPunks: $4.28 billion
- Bored Ape Yacht Club: $1.82 billion
- Art Blocks Curated: $1.66 billion.
The future of NFTs
In the initial phase, Ethereum offered a beta test of the technology, in addition to exploring the potential for digital art. With the discovery of new use cases, we are now entering the second stage of NFT adoption.
Furthermore, it’s no unknown fact that, to a large extent, rarity is what drives the NFT market. In line with this, several platforms are also now launching limited-edition NFTs by artists and “personalities” in response to the flood of celebrities and influencers.
As they continue their wild ride in the next few years, here are few top NFT trends for the near future:
- Incumbent media NFTs
- Programmatic and generative art
- Digital museums
- Growth of the Metaverse
- Multi-chain support
- DeFi integration
- Integration into traditional portfolio management
Fueled by the overall increase in the market activity of cryptocurrencies, and the rise of easy-to-use and cost-effective NFT minting platforms, protocols, and marketplaces, there’s no doubt that the NFT market is certainly here to stay.
GameStar.Exchange: The leading player in P2P trading
GameStar.Exchange, the world’s leading decentralised P2P trading platform, allows peer to peer traders to directly connect their wallet to participate in the market. GameStar.Exchange also offers a gamer focused NFT P2P trading market where artists and game developers can publish auction information for collections and collectors can advertise needs and sell corresponding work. With various features such as two-way trading, a global decentralised market, and guaranteed asset safety, GameStar.Exchange is certainly changing the landscape of NFTs and NFT gaming.