NFT Landscape: All the Things You Need to Know
Non-fungible tokens (NFTs) are rising in popularity. In 2021, the NFT market hit an enormous $25 billion with countless individual purchases, meanwhile, in the first half of 2022, the most expensive NFT is up to $93 million according to the global data. The NFT landscape is expected to continuously grow more than 10 times in the next ten years.
Though acknowledging that potential growth, some people still find it difficult to understand. For that reason, this article would address your concern and help you to invest in this platform immediately by going through the general NFT landscape.
It is phenomenal to acknowledge that NFT is everywhere, and rapidly transforming the cryptocurrencies along with the online trading investment landscape. The rise of the Internet of Things (IoT), artificial intelligent, and digital items have brought the NFT landscape widely into the world of transactions. So what is the current NFT landscape and the forecast? This article will explain as below.
What is an NFT?
NFT is a digital asset standing for non-fungible tokens. This platform illustrates real-world objects or values such as music, in-game items, artwork, moments etc. Typically, those assets are encoded in blockchain platforms sold and bought online by cryptocurrency.
The difference between NFT with other cryptocurrencies is that: cryptocurrency is a blockchain currency that has financial value and is fungible, for example, 1XBT = $28,969 USD (Currency Converter). Meanwhile, NFT has value beyond economics which is based mainly on the emotional connection and personal experience. Furthermore, NFT is guaranteed to be unique for the owners and restricted in amount and not interchangeable.
The Top NFT marketplaces
NFT marketplaces are a gateway for both creators and investors to connect with each other just like Amazon. To be specific, people can purchase and sell their digital assets by cryptocurrency – Ethereum (ETH). There are many NFT marketplaces existing, and each of them has a specific focus or niche for its customers. Here are the top NFT marketplaces that create the giant sale in the previous year:
OpenSea is the largest peer-to-peer NFT marketplace, with a total volume of $6.5 billion in 2021. Currently, OpenSea is still a leading NFT sale with all kinds of digital items and supports more than 150 different payment tokens.
Rarible is similar to OpenSea in providing all kinds of NFTs, but you need to exchange your currency into a Rarible token called: CRYPTO: RARI to trade.
Axie Infinity Marketplace
Axie Infinity Marketplace is specialised in selling the video game Axie Infinity. Customers can buy new items (Axies), and land to use in the game. Axie accepts the cryptocurrency exchange.
The NFT community is defined as a hub where artists, designers, and collectors collaborate to create new works of art. It impedes an emotional value when it produces a sense of loyalty and lots of solid reasons to encourage your NFT holders to hold on to their token for other larger worth in the long run, in addition to offering physical value (NFT money). It is suggested that the more the creators offer sentimental links between your brands/artworks and the community, the more the community attains that tremendous capital value.
The State of the NFT Landscape
Due to the high demand and high profit from the market, the NFT landscape has broadened and been well-known with both the cryptocurrency community and other businesses. As for that widespread, Google search has also reported that the keyword “NFT” has especially high searches in Asia and United States among the GenZ.
So, is the NFT landscape changing industries all over the world?
The answer is yes. More and more corporate sponsors, as well as celebrities, enter the NFT world, thus, it is speculated that 2022 will be the exploring year that NFTs will go mainstream. For example, Coca-cola has created a virtual-world spin on its merchandise when winning the auction called “Loot box” will receive NFT products such as sound card NFT of Coke fountain, token NFT with a special offer, digital clothing NFT on metaverse character etc. This campaign would not only spread Coke’s brand awareness but also attract more and more investment to the company.
Besides, the NFT landscape has also brought lots of opportunities for artists and creators to inspire their artwork and also make a living. It is clearly seen that Specifically, the “Everyday: The first 5000 Days” of Beeple got the sale price at $69.3 million ranking the highest NFT value in 2021. Contrastly, in 2022, artwork from PAK – The Merge, is currently the most expensive one which is sold for $91.8 million.
Ever since, not only artists and creators are jumping into the NFT world, brands and celebrities across all industries, from the fashion industry such as Gucci, Louis Vuitton and Adidas, to the tourism industry on virtual trips into the NFT metaverse. For instance, Snoop Dog released his NFT collection called “A Journey with Dog” earning over $100,000 for one-pieces sold. Or, Shawn Mendes has launched his album on OpenSea called “Wonder” and other digital merchandise earning around $1 million in 10 minutes.
NFT is expected to be a good added portfolio for investors in the future. This is due to the fact that the NFT landscape has achieved abundant mature years over years when the world is moving away from paper to digitised one. According to the gradual growth of cryptocurrencies as well as the demand for owning digital art worldwide, the NFT market is expected to reach $211.72 billion by 2030, which is 8.5 times higher compared to 2021 ($25 billion).
Besides digital arts as mentioned, the fund raised by NFT companies is predicted to be the major entity in the NFT landscape. The trend started in 2022 when most of the NFT value was used for raising funds. To be specific, you can use NFT to raise funds for charity, start-ups, or transforming small companies into big ones, etc. For example, Katie Haun has funded $50 million for the Protocol Zora – a startup tool. Thus, there are many ways, and many industries begin to use NFT as a great tool to connect and develop their entities in the future.
Despite being predicted to grow enormously, the NFT landscape still depends on various elements: the advent of new blockchain products, new technological solutions for NFT, cryptocurrency statements in general, legal among countries, politics and so on. Consequently, before investing in NFTs, It is necessary for you to spend time researching the current NFT landscape as well as other blockchain platforms.
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