There is a very good reason that NFT crypto tokens are booming in the digital space right now. Although it is a new concept for many people and the question pinch in mind is “what is NFT?” So, let us have a brief look at that.
Ethereum has become a new digital platform to tokenize digital media like art, music, gaming assets, and other digital collectibles. These tokens of digital media are Non-Fungible Tokens or NFTs. Unlike other cryptocurrencies, NFTs are not interchangeable.
Non-fungible is a self-explanatory term that means unique and duplication less. These tokens use a decentralized blockchain base to purchase and prove ownership of digital assets in a secure manner. The NFTs are famous amongst celebrities, influencers, digital artists, and game developers as a tool for monetizing their digital assets and fan-following.
NFTs came into the mainstream in late 2012, not to mention the cryptocurrency was already there since 2008. NFTs are Colored Coins. Colored Coins are small parts of Bitcoin, which can be as small as a Satoshi. In 2014, “Counterparty” named platform first launched the NFTs. It was not bitcoin that enabled NFTs- it is a misconception about it.
Coloured coins operated quite well in a permissioned environment, which means it’s much easier to use a standard database for this purpose.
Counterparty was a P2P financial platform with an open-sourced platform. Within two years, asset creation like in-game assets, memes, and trading cards was sold in Counterparty. Since it was built on top of the Bitcoin blockchain network, this wasn’t truly a Non-Fungible token.
The true NFTs started in 2017 in the form of Cryptopunks. Cryptopunks was the brainchild of John Watkinson and Matt Hall, who created 10,000 unique characters and gave them away for free to 10,000 Ethereum wallet holders. Since then, these characters are sold in a secondary marketplace. The ape character sold for as much as $2 million in Ether. However, ERC 721 was not invented thus far. Thus, it is a hybrid between the current form of NFTs and regular crypto tokens.
With the invention of the ERC 721 standards, Cryptokitties brought NFT to the limelight. Users could buy, sell, adopt and raise virtual cats on the Ethereum network. Other similar games and studios soon followed. Familiar faces like Lindsey Lohan, Logan Paul soon started to resort to NFTs to sell unique digital merchandise. In 2021, the NFT market is showing no signs of slowing down. Let’s have a look at some of the recent trends in the NFT Crypto Market.
The initial half of 2020 was somewhat stagnant for the NFT markets. Still, the pandemic, and the surge in the popularity of cryptocurrencies, also saw the boom of NFTs. A-listers like Elon Musk, Mark Cuban, were able to sell NFTs of tweets. In December of 2020, Beeple, a digital artist, sold his NFT collection called “Every day” for $3.5 million. This was the most valuable NFT collection to be sold as of December 2020.
Popular YouTuber Logan Paul launched unique digital collectibles for a reported sum of $5 million in February 2021. Canadian Musician Grimes went to sell around $6 million in NFTs, as recently as February 28.
NFT Crypto is the hottest thing in the crypto space right now and is the future of merchandise sales.
The Flow NFT token is not only a quick and developer-friendly blockchain. It is also constructed to be the foundation for a new generation of games, apps, and digital assets. Flow is a layer-one blockchain originally developed by a team that boasts a long and illustrious experience in consumer blockchain applications. For example, CryptoKitties and Dapper Wallet and the NBA Top Shot.
Enjin is a company that offers an ecosystem of integrated digital products, making it easy for everyone to trade and monetize gaming products. This allows game developers to tokenize in-game items on Ethereum, backed by Enjin coin, Enjin’s ERC 20 token. It has a market cap of close to a billion dollars and has the highest market cap of all NFTs as of March 3, 2021. Enjin coin is one of the cheapest coins that we think has a high potential for growth in 2021.
Decentraland (MANA) is a VR platform functioning on Ethereum, allowing users to “create, experience, and monetize content and applications”. Users can purchase plots of land that they can navigate, build and monetize as they like. As of January 2021, Aetheria, a Cyberpunk-themed district of the name Aetheria is the largest district, which comprises 8,008 LAND (each LAND is equivalent to 100 Square Metres). Ready Player One vibe, anyone? The project started with a successful $24 million ICO, with the virtual land opening its doors in February 2020.
Decentraland utilizes one ERC-20 (MANA) and one ERC-721 (LAND) token. MANA should be burned to acquire LAND tokens. Each LAND is equivalent to 100 Square Metres in the Metaverse – the virtual reality land.
Axie Infinity is a trading and battling game, which is partially owned and managed by the players, functioning on a blockchain. Axie Infinity was inspired by Pokémon, which allows users to collect, breed, battle, and trade tokenized battle creatures called Axis.
These Axis can take different forms, with more than 500 body parts for customizations, with differing rarity and drop rates. Axis can be bred to produce more Axis (maximum limit set to 7), which can then be sold on the Axie marketplace. Axie Infinity uses the Axie Infinite Shards (AXS) ERC-20 token to participate in governance votes.
Terra Virtua Kolect is an NFT crypto marketplace that allows a curated, cross-platform ecosystem for NFT creators and collectors alike. Partnered with mainstream digital media houses like Legendary Entertainment and Paramount Pictures, TVK raised about $2.6 million in token sales. This NFT crypto project allows the digital asset to be viewed online via the mobile app and can also be considered in a 3D environment using Augmented Reality.
Origin Protocol is a Decentralized shopping platform, commonly referred to as DShop in the NFT crypto world. The shop allows buying of NFTs, as seen in the recent NFT drop by world-renowned musician 3LAU, where 33 unique NFTs were sold for a whopping $11,684,101 on February 26, 2021. This auction was for the first-ever tokenized musical note album. As 3LAU remarked, it “is just the beginning for musicians to capture the immense value they create in the world”.