From music and art to video games and more—here’s our round-up of the top five NFT types.
“NFT” has been crowned Collin Dictionary’s Word of the Year for 2021. After all, NFTs, or non-fungible tokens, have amassed a following like no other over the past year. So much so that the use of this abbreviation increased by 11,000% in 2021. Collins Learning managing director, Alex Beecroft, told the Guardian, “NFTs seem to be everywhere, from the arts sections to the financial pages and in galleries and auction houses and across social media platforms.” In keeping with that, we have rounded up the top five NFT types to watch for in 2022.
Giving artists a chance to tokenize and profit (rather generously) off of their artwork is one of the top selling points of NFT art. It refers to any type of digital art that is stored on a blockchain. The artwork is then owned by the token holder and can be traded or sold just like any other NFTs. NFT art also allows for artists to build a global fan base without the assistance of galleries, distributors or curators. This has led to an increased number of monthly visitors on marketplaces for NFT artwork, like Maecenas and Gemini. The most expensive NFT art ever sold is “Everydays—The First 5000 Days” by Beeple. It was auctioned off for a whopping US$69 million in March 2021.
From Grimes and Kings of Leon to Lindsay Lohan and the Rolling Stones—musicians have been tokenizing their tracks and selling them as NFTs. Music NFTs witnessed a significant boost this year, with sales increasing from US$50,000 in September 2020 to US$27 million in March 2021. DJ and founder of Royal, an NFT music platform, noted, “A true fan might want to own something way earlier than a speculator would even get wind of it. Democratizing access to asset classes is a huge part of crypto’s future.” Additionally, with NFT music, artists don’t need to rely on record labels to usher in sales from their music. They are free to navigate their music career as they wish. All things considered, the popularity of NFT music is only set to rise as more artists get on the NFT music platform bandwagon.
Play video games, earn cryptocurrency. Some of the newest video games are departing from the traditional video game model and adopting a more profitable one. With NFT games, players get to collect exclusive rewards that they can later trade as NFTs. One of the first games to implement this was CryptoKitties. The game allows players to breed and trade digital cats using Ethereum-based smart contracts. As of September 2021, the total sales amount of CryptoKitties amounted to US$4 million. Given its lucrative model, more companies are set to launch NFT games in the coming years, giving players more opportunities to make gaming a full-time job.
Just because you can’t wear it physically doesn’t mean you can’t carry it in style…on your device. Be it Karl Lagerfeld or Gucci—nearly all fashion designers want a piece of the NFT pie. For that, they are designing exclusive bags, video games, couture and more to be sold on NFT marketplaces. NFT fashion provides a new revenue stream for designers. Some of the most well-known designers and brands that have ventured into the world of NFTs include Louis Vuitton, Yves Saint Laurent, Alexander Wang and Prada. In April 2021, Prada, together with Louis Vuitton and Cartier, announced the launch of Aura Blockchain Consortium, a global blockchain for all luxury brands and buyers. It is aimed at boosting transparency within the industry.
In a win for the “meme economy”, memes raked in millions of dollars this year as NFTs. Creators and faces of popular memes, such as side-eyeing Chloe and bad luck Brian, realized that making people laugh does not have to be an altruistic deed. Indeed, it can be extremely profitable if done right. Rest assured, NFT memes are only going to become more popular in 2022 as people look for new, innovative and exclusive ways to earn money.
NFTs have all but permeated every aspect of our lifestyles. From music and fashion to memes and video games—they rule the roost when it comes to entertainment. And in the years to come, we expect NFTs to be even more prominent.
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