Last year, NFT reached its peak of hype, which slowly declined in 2022. So, here are more details:
According to the 2021 NFT Market Report published by blockchain data company Chainalysis, the NFT market has risen to a value of more than $40 billion as NFT popularity has increased. However, in 2022, unlike the meltdown of the cryptocurrency market, which has received a great deal of media coverage, the parallel collapse of the non-fungible token (NFT) market has been less widely reported. The number of people actively trading on the NFT market has been falling steadily since February 2022, a time when consumer confidence in the NFT market was at an all-time low. According to Chainalysis, a blockchain analytics platform, the weekly volume of transactions on NFT marketplaces dropped by an eye-popping 88% in June.
NFT, short for non-fungible token, is a type of cryptocurrency representing a unique asset. Unlike traditional cryptocurrencies like Bitcoin, which are interchangeable and can be easily traded for other currencies or assets, NFTs are unique and cannot be replaced or exchanged for other tokens on a one-to-one basis. This makes them well-suited for representing assets that are unique and have intrinsic value, such as digital art or collectibles. NFTs are built on blockchain technology, which allows them to be bought, sold, and traded on online marketplaces.
An NFT can contain data related to digital images, videos, songs, avatars, and more.
However, NFT can also give the owner access to exclusive products, tickets to live or digital events, or be linked to physical assets such as cars, jewelry, and more. So, among this wide ocean of options that can be confusing, what are the different types that you need to know?
In this article, we explore 10 categories of NFT that are the most popular right now relating to the creative world, from artwork, photography, through a new way of operating in the music industry, to NFTs used in marketing strategies by many companies as advertising tools for brand loyalty. However, surely new types will pop up in the near future, given the limitless potential NFT brings.
As collectibles, we can refer to a collection of different and varied tokens that can be collected, held, or resold. Among the most popular NFT collectibles are Cryptopunks, launched in 2017 and considered the beginning of the NFTs trend, CryptoKitties, and Bored Ape Yacht Club, which escalated quickly, becoming one of the most wanted NFTs on the blockchain. Among collectibles, there are subcategories of NFTs as digital collectibles, big sports moments tokens, or NFT trading cards.
Web3 game Gods Unchained is collaborating with global blockchain company Immutable X to launch the first seasonally themed card set in the game's history. The holiday-themed card set includes unique festive goods and digital cosmetics. Titled Winter Wonderland, the card set is the first mini-set developed for the game.
Many companies and brands are proposing NFT-based memberships to provide incentives to their owners. These exclusive programs use NFTs as keys to unlock a unique set of content, services, and rewards, including access to communities, organizations, and virtual and real-world experiences.
In January 2023, Porsche is ready to launch its first NFT collection (7500 pieces NFT inspired by the legendary Porsche 911). Porsche NFT owners will get access to special virtual and real-world experiences. And may participate in Porsche’s Web3 journey, interacting with the brand directly.
Deniz Keskin, Porsche's Director of Brand Management and Partnerships, affirmed: “Venturing into new areas has always been the spirit of our brand,” Keskin said. “We are excited to enter Web3 with our first NFT collection. Our goal is an extension of our brand into a fully digital environment. And ideally, to meet new friends along the way.”
Generative art, as the expression itself indicates, consists of all those artworks created through the use of algorithms or artificial intelligence or even those artworks created by physical robots. Basically, an artist enters a set of rules (e.g., a range of colors and patterns) against a number of iterations and randomness. Then, the computer generates the artwork within this framework. This artistic style has been around for several decades; however, it has only recently gained popularity as a tool for creating non-fungible token artwork.
Digital artist Kevin McCoy is considered the first to have created the first known NFT, titled "Quantum," using code to create an abstract image that was registered on an early blockchain network.
When it comes to PFP (acronym of “Picture for Proof or simply “Profile Picture”) NFT, we refer to a digital token or artwork designed to be displayed as a person’s social media profile picture.
Their use as profile pictures has become a trend among celebrities. However, its popularity came with the production of the first PFP NFT project, CryptoPunks.
Since then, CryptoPunks has been one of the most popular NFT PFPs in the market, and its price has skyrocketed over the past year. The huge demand in the NFT PFP market has prompted NFT artists to follow CryptoPunk's lead and create new projects, such as LarvaLabs' Meebits, to help improve the NFT PFP craze.
Can there be multiple NFTs for digital artwork?
The answer is yes. Artists may mint as many NFTs as they wish for the same artwork. In this case, the artwork may appear visually identical but possess different numbers of editions or token IDs.
One-of-one NFTs are non-fungible tokens minted as a unique edition. This means that, like most physical works of art, there is only one digital certificate of a one-of-one NFT at any given time. In contrast, some artists choose to mint multiple versions or multiple copies of the same digital artwork, which many people can own.
One-of-one NFTs rarity makes them more sought after and priced higher, especially when made by popular artists.
NFT images are images in the form of digital tokens. Photographers, like other artists, can turn their photos into NFTs and sell them online. It is not necessary to take new shots, as long as it is digital and convertible to NFT.
Some photographers have struck the gold mine by selling their images as NFTs. The most expensive photography was sold for more than $2 million in 2022 by Justin Aversano.
Variations of NFTs include music NFTs. These are tokenized versions of a piece of music, such as a song, an album, or even a music video. Music and media files can now be linked to NFTs, and true ownership is attributed to an individual.
By making this transition to tokenized media assets, artists can directly offer their followers and a new audience a premium experience on platforms such as Roayl or Sound.xyz.
They also retain about 100% of their earnings without having to worry about cuts from record labels and streaming platforms, one of the reasons why NFTs are so well received by artists.
While virtual money is not a new concept in the gaming world, thanks to the advent of blockchain technology, crypto gaming has gained even more realistic outlines in terms of in-game economic systems.
NFT gaming provides certificates of ownership of a digital good made in limited numbers. Players can own in-game items, trophies, money, collectibles, virtual land in metaverse, avatars, and trade these digital assets to earn financial rewards.
OpenSea CEO Devid Finzer recently said that NFT in games is an area where his market is seeing an "explosion of innovation." He also referred to the game industry as a market opportunity for NFTs to generate more consumer enthusiasm.
NFTs are now also used as tickets for music and other events. NFT ticketing is an access pass for live or virtual events and enables easy verification of tickets and people's identities.
It also serves as a way to send notices and offer gifts and exclusive services to its holders. These tickets can be purchased in an auction list and then stored in mobile devices through wallets for easy accessibility.
Virtual event hosting platform FanRoom Live has announced a unique partnership with Abante Productions to make event tickets available to fans worldwide through Gamestop's NFT marketplace and event series that will now be streamed on GameStop's Marketplace.
For the first time in the industry, fans will be able to participate in future events and meet their favorite celebrities through NFT Blockchain tickets.
The NFT market allowed users to register and sell domain names. The name ownership rights are exclusive, and by acquiring a domain name in the NFT marketplace, you can avoid using an intermediary and the costs due to a third-party company to manage the domain name.
Examples of NFT domain name providers are Ethereum Name Service (ENS) and Unstoppable Domains through decentralized domain name services.
There are many different types of NFTs, and their specific characteristics can vary depending on the platform or marketplace they are used in. In general, however, NFTs can be classified into several categories based on the type of asset they represent. For example, there are NFTs that represent digital art, collectibles, in-game items, virtual real estate, and much more. Additionally, some NFTs may have additional features or properties, such as the ability to interact with other NFTs or to provide their owners with access to exclusive content or experiences. The specific features of an NFT will depend on its intended use and the platform it is built on.
Stay tuned for more insights from the GeoCTRL team!