When Jack Dorsey, the inventor of Twitter, sold the first tweet in history for $2.9 million, there was a lot of interest in the NFT Market. Since then, there has been a dramatic increase in activity in the NFT market.
There appears to be an abundance of digital art on the NFT market, but what other forms of NFTs are available?
Table of Contents
Beginning with NFT
The use of digital tokens is not new in the world of technology. The first NFT was actually issued in 2014, and just six years later, the market cap of NFTs has grown to around $2 billion. The overall sales volume in 2020 came to just around $250 million.
NFTs are tokens that are used to signify ownership of unique items.
They enable us to tokenize art, collectibles, and real estate. They are restricted to having a single official owner and are secured by the Ethereum blockchain, making it impossible for anyone to change the ownership record or establish a new NFT.
That’s not far from the truth; everything can be an NFT. There is no restriction on what counts as an NFT.
The most common NFT types in 2022 are as follows:
1. PFPs and Avatars
Without a doubt, when people outside the NFT community think of NFTs, they typically think of this format. That’s intentional; if you quickly search for “NFTs” on Twitter, you’ll find a plethora of messages from users that have Bored Apes, CryptoPunks, Cool Cats, Doodles, and all of their offspring and spinoffs for their avatars.
Owners of PFPs or NFTs may freely use them on their personal social media pages, most frequently as a digital flex. The NFT community as a whole gain significantly from all that online flexing since they effectively serve as free advertisements for NFTs. Numerous celebrities have been seen sporting PFP NFTs on their social media pages since the 2021 NFT boom. On their Spotify profiles, musicians like BLOND: ISH are even displaying their profile picture (PFP) NFTs.
2. NFT Collectibles
The first instance of NFTs being considered collectibles happened in 2017, with the introduction of Cryptokitties – one-of-a-kind digital kittens that gained popularity among collectors. It is also acknowledged as the first NFT application.
The first instance of NFTs being considered collectibles happened in 2017, with the introduction of Cryptokitties – one-of-a-kind digital kittens that gained popularity among collectors.
In 2017, Cryptokitties became so popular that they congested the Ethereum network. One of the most prominent contributions to the group of non-fungible tokens for digital collectibles is Cryptokitties. They are digital kittens with distinguishing qualities that make them more popular and attractive than others.
3. Digital Trading Cards
NFTs are comparable to virtual trading cards. There are some limited edition baseball cards that sell for tens of thousands of dollars on the secondary market, and the NFT market is no different. It is possible to purchase and exchange virtual trading cards on the open market and preserve them just like the actual trading cards you possess. And if that weren’t expensive enough, some copies cost over $1 million.
4. NFT art
Today, the great majority of non-fungible tokens (99 percent of all NFTs) are programmable artworks. This is because artists were eager to capitalize on the development of NFTs.
Digital photos, GIFs, and short videos considered virtual artworks are now marketed online in the same manner as tangible items in this day and age.
Digital photos, GIFs, and short videos considered virtual artworks are now marketed online in the same manner as tangible items in this day and age. Additionally, these NFTs are the most expensive, frequently selling for millions of dollars.
5. Music and other forms of Media
A new subcategory of NFTs is being developed through experiments with NFTs in music and media. Media files, such as music and movies, can be connected to NFTs, making the files accessible to anyone with a valid ownership claim. Two of the most well-liked services for musicians looking to mint their tracks as NFTs are Rarible and Mintbase.
Listeners get a premium experience, while artists may engage with their fans and get new ones. The exclusivity of buying NFTs is one of the key motivations for putting them into music. It may be possible to successfully battle music piracy and middlemen by increasing the amount of music non-fungible tokens (NFTs) on the non-fungible tokens list.
Musicians adore NFTs because they don’t have to share their earnings with record companies or streaming platforms, allowing them to keep a higher amount of their earnings.
6. Gaming NFTs
Players can possess in-game items including skins, weapons, digital accessories, characters, and virtual land in the metaverse through NFT-driven play-to-earn (P2E) games, commonly referred to as “crypto games.” Players can trade these digital items for cash incentives. Axie Infinity, Gods Unchained, and Decentraland are some of the games that are most well-liked.
Though not every gamified NFT project is a play-to-earn game. Additionally, initiatives like Parallel that make collecting more fun have been noted.
7. Tokenized Assets
It’s widely believed that NFTs will eventually be employed as tokens in the real world. This is what the development in the NFT sector is working toward, and the possibility that it will happen is encouraging.
NFTs can represent real-world assets since they offer cryptographic evidence of ownership. The tokenization of luxury items and real estate is now the focus of many NFT efforts. You have additional choices with NFT deeds when buying a house or a car.
Real-world assets and works of art could be tokenized to encourage the use of non-fungible tokens.
Real-world assets and works of art could be tokenized to encourage the use of non-fungible tokens. Scanning a barcode or label on an item may become more interesting with the integration of blockchain and IoT. The way the NFT represents artwork may make it easier to register actual artwork ownership on a blockchain network. After then, viewers could learn about a piece of art’s whole history, including its prior owners and the selling prices it received.
The NFT market allows you to buy and sell memes, just when you thought the internet couldn’t possibly offer any more fascinating content. Despite their extensive use in popular culture and on the internet, NFTs have been associated with memes. Meme makers are prepared to create a developing future ecosystem, as seen by the sale of memes as NFTs.
What’s cool is that the individual in the meme is sometimes the genuine seller. On the list are some of the more well-known memes, including Nyan Cat, Bad Luck Brian, Disaster Girl, and others, which have made between $30,000 and $770,000. The Doge meme, which sold for a startling $4 million, was the most expensive meme NFT sale to date.
The NFT market still has a lot of untapped potential. People have purchased a wide range of goods as NFTs, from virtual Versace handbags to digital baseball cards, but we’re still only at the beginning.
The list will inevitably expand over time. You are free to manufacture your own NFTs on the open market.