- Popularly known as NFTs, non-fungible tokens have changed how creators and fans interact. These unique tokens are revolutionizing how we own items in physical and digital spaces.
The Bored Ape Yacht Club NFT Collection
NFTs are simply digital tokens representing ownership of a unique physical or digital asset. NFTs operate on blockchains and are generated (or minted) based on specific token rules supported by a blockchain. For example, Ethereum, the most popular blockchain for creating NFTs, uses ERC721 and ERC1155 token standards to mint new NFTs.
These digital tokens leverage blockchain technology to decentralize ownership of items, especially in the art scene. Artists can create content like music or artwork, tokenize it and sell it to a fan without going through an intermediary. This blockchain-powered peer-to-peer (P2P) interaction solidifies creator and fan relations.
Beyond Limitless Applications
Practically, NFTs have numerous real-world applications. These include artwork, music, video content, property titles, virtual items, gaming collectibles, and trading cards. Social media giants have noticed the potential in NFTs and are rushing to tap into it.
One of the biggest highlights was Facebook’s name change to Meta, reflecting the company’s new focus on the metaverse – a virtual world where users own and trade virtual items as NFTs. Another Meta subsidiary, Instagram, also announced plans to integrate NFTs into their platform. Moreover, Reddit and Twitter allow users to set their NFTs as profile pictures.
DataRePortal reports that over half of the global population has access to social media. Potentially, these social platforms will make it easy for any user to create, store, transfer, or trade NFTs directly with their peers.
A Gaming Sensation, A Sporting Favorite
The gaming world is one of the leading sectors embracing NFTs. Play-to-earn NFT games have soared in popularity for their captivating experience, rewards, and financial incentives to players. Now, gamers can monetize their playtime to earn tradable collectibles for money or other in-game perks to improve their gaming experience. Some popular play-to-earn NFT games are Battle of Guardians, Axie Infinity, and the Sandbox.
Popular NFT Games – Axie Infinity and The Sandbox
Across major sports leagues, NFTs are taking over as essential collectors’ items. Sports fanbase creates a perfect application for NFTs – diehard fans can own a piece of memorable history from their favorite teams or players. One-of-a-kind NFTs are also very popular among sports fans for their rarity.
NBA Top Shot is arguably the most popular sports NFT collection. According to DappRadar, the NBA highlight collection launched in 2020 has a sales volume exceeding $960 million and a top sale of $210K as of September 2022.
DappRaddar Statistics on NBA Top Shot NFT Collection
Top soccer teams have partnered with Sorare to build a global fantasy league where fans can manage, buy, trade, and sell real-world soccer players on virtual teams. The NFL is another top sports league that mints NFTs for its fans.
Sorare Soccer NFT
Creators list their NFTs on NFT marketplaces like OpenSea, Rarible, Axie Marketplace, and Solanart. OpenSea is the most popular – with a sales volume of over $32 billion. New NFT projects and collections are launched every day. Stay up-to-date with the latest and upcoming projects on Oxalus.