People everywhere have a varied opinion about the NFT space, some think that NFT’s are the future of art and a revolution in the very concept of ownership and on the other hand it is assumed to be an environmentally destructive fad that’s ripe for ridicule. According to our research through various articles and databases, we have come up with a short explanation in the following paragraphs as to where the future of NFT’s stands.
Blockchain is the engine or system on which all cryptocurrencies and NFT’s are built on. A Non-Fungible Token (NFT) is a digital token that is permanently linked to a piece. It validates the piece’s ownership and authenticity. It’s a form of digital asset that can be used to represent real-world artifacts like art, music, video, and in-game stuff. An NFT essentially allows its buyer to own the original copy of a digital file in the same way you might own the original copy of a piece of physical art. NFT’s are quite likely to be associated with the art world, but there are many ways in which NFT’s can be used. Conventionally a piece of digital art or data can be copied easily, leaving the creator or purchaser with no control over this duplication or a way to validate the original work but on the other hand, NFT provides an iron-clad everlasting proof of ownership along with its origin. In the future, every artwork or data both digital and physical may have an NFT attached to it providing authenticity.
At $41 billion market capitalisation NFT’s are getting closer to the entire global art market cap of $50 billion. Also, some leading banks and analysts estimate that the NFT market cap could reach over $85 billion by 2025. A few famous examples that show an upward trend in the market are the price growth of famous NFT’s like the Bored Ape’s and CryptoPunks. Bored Ape’s were minted at 0.08 ETH (around $200 at the time) in 2021 and are currently valued at around 107 ETH (approx. $295,000) per NFT, whereas CryptoPunks are sold from 81 ETH onwards. It is just a matter of time before doubting the relevancy of NFTs will no longer be an argument. Major corporations know this and are building within this space so that they can take the advantage of being early to the market.
The latest trend in the NFT space is the attached utility it carries. For e.g. holding an NFT could give you access to exclusive experiences and events, early access to the launch of new products, airdrops, and so on. This list of utilities are increasing on a daily basis and NFT founders come up with very interesting innovative ideas in order to sell their entire supply during its mint. Another very fascinating selling point of these newly launched NFT’s are its metaverse integration and the P2E (play-to-earn) model.
Given all the trends and the development in the NFT space, it definitely seems like it is here to stay and would not fade away anytime in the future.