Non-Fungible Tokens (NFT) were nothing more than a mere industry buzzword a couple of years ago. Many people had zero knowledge about the concept, while some were pessimistic about its usefulness, future, and investment value. The majority of people considered it to be no more than a transitioning fad.
NFTs have since transitioned from obscurity to mainstream news, with millions of dollars worth of these tokens transacted every day. Reports show that the NFT industry recorded over $17 billion worth of trading volume in 2021, with some speculating that the figure may hit $147 billion five years from now.
From a state of obscurity, NFTs have evolved to become a household name among cryptocurrency investors, enthusiasts, and onlookers. In tandem, the industry matures as more investors and enthusiasts accept and adopt the concept.
The Evolution of NFTs
Beeple turned the global community’s attention to NFTs when he sold his digital art, “Everyday”: The First 5000, for $69 million. Since that sale, several multimillion-dollar NFTs such as Julian Assange, CryptoPunk #7523 and a host of others have sold for large sums, giving more credence and popularity to the hitherto alien concept.
Recently, major brands and celebrities have turned their attention to NFTs, with hundreds of millions of dollars invested. Besides, celebrities, such as Snoop Dogg and Serena Williams, other top-draw celebrities are investing in this concept.
Popular brands such as Adidas and McDonald’s have created and dropped their NFT collections. Nike went a step further and acquired RTFKT Studios to make more impact on the concept, while some Super Bowl commercials included NFTs.
The increasing adoption by popular brands and celebrities contributes significantly to the evolution of NFTs. More prospective investors who had some reservations about investing in the new concept are motivated by the growing interest of their favourite influencers in digital arts.
Lower entry to NFT collections
There has also been a dramatic reduction in entry barriers to NFT creation and ownership of NFTs, thanks to the development of several NFT tools and minting platforms. A recent study showed NFTs had outgrown the number of public websites.
The lowered entry requirements have drawn more investors into the space, making it more attractive to individuals and organizations contemplating what are the best ways to invest in NFTs.
Besides the NFT industry’s astronomical rise, which itself is a selling point, NFTs have equally undergone some dramatic changes since they first came about some years back. With companies such as Larva Labs and CryptoPunks innovating the industry and offering new features, NFT evolution is an ongoing and richly-rewarding process for investors and enthusiasts.
The NFT evolution has been more than impressive, with some outstanding innovations that increase its value.
In the beginning, the images were 8-bit pixilated but have recently been replaced by high-quality animations to attract more investors.
Play To Earn NFTs
In addition to all this, Play-to-Earn game models offer gamers unique multiplayer experiences while earning attractive incentives and rewards as they play their favourite online NFT-based games.
Unlike traditional video games, these new crypto games allow you to make money inside the gaming ecosystem, via the use of NFTs. Items inside the games, such as characters, armor, Land, etc., are in the form of Non-fungible tokens. This makes them unique and creates scarcity, which in turn creates a market for these items. You can sell your NFTs for profit on NFT marketplaces.
You can also receive in-game rewards in the form of NFTs which again can be sold.
Sixteen months ago, only the true believers and developers had faith in the power of NFTs. When you mentioned the word NFT, more often than not you got a quizzical or disdainful look. To watch from the humble beginnings of pixilated images to the driving force behind complete gaming ecosystems was quite a journey.
However, this is only the commencement of the adventure for a technology that is far from its full potential use, in society at large. The evolution of NFTs is ongoing.