The business of non-fungible-tokens is getting serious and NFTs are redefining the crypto space now
NFTS are not dead,” analysts Gautam Chhugani and Manas Agrawal wrote, noting that well-known collections such as the Bored Ape are still holding a floor price of $100,000, and the number of active monthly users on OpenSea is stable at about 360,000, down about 35% from a high of around 550,000. The business of non-fungible-tokens is getting serious and NFTs are redefining crypto space now. While they may have started out looking like speculative jpeg images, they are now redefining the “crypto consumer stack” in terms of games, social, content and commerce, brokerage, and research firm Bernstein said in a research report Monday.
NFTs and Crypto: the new era of ownership
Did you know that NFTs and Metaverse have turned virtually analogous in recent times? Confused? Well, even though NFTs or Non-Fungible Tokens are supposed to represent an entirely new crypto use case, they do share a few similarities with the Metaverse. Many metaverses, including the gaming-specific Sandbox and Gala Games, have quite a few people-creative digital assets floating around. And these assets and exclusives can be traded as NFTs over the ecosystems, often using the Metaverse-relevant coins. No doubt, NFTs are redefining crypto space.
Gamification projects across metaverses have reinvented the wheel when digital ownership is concerned. People want to own and flaunt specific entities, and the best way to go about the same is to get the concerned NFT. And with NFTs in play, the creator of the digital piece, artwork, image, or anything exclusive is still in control of offering. It’s just the ownership that gets validated over the Blockchain ledger, thereby encouraging transparency and discouraging piracy and duplication.
According to CoinDeck, the early success and subsequent decline of NFT activity has multiple lessons, but the sector is still in the early stages of adoption, and NFTs are “how crypto would go mainstream and onboard users,” the report said.
NFTs are digital assets on a blockchain that represent ownership of virtual or physical items and can be sold or traded.
The real part of the “NFT revolution” is using these tokens as “Lego blocks” to build a fun game, the note said, adding that while crypto games are no competition to the mainstream gaming studios, it is possible to build a new genre of NFT-powered games in which players can earn and own in-game assets such as NFTs and crypto.
“Brands leverage NFTs to sell digital goods for real-life experiences,” Bernstein said. As the crypto consumer base expands, every brand will need to build a NFT marketing strategy, it added, noting that Nike (NKE) already has about $180 million revenue through NFTs.
NFTs are redefining crypto and will now depend on their ability to deliver a real product, such as gaming worlds, content and merchandise, the note said, adding that blockchain games should not try to compete with the large gaming studios, but innovate on game play that is unique to crypto. The NFT infrastructure stack will continue to see significant private investment, the note added.
