NFTs ruled the market in 2021. Why?
NFT industry encountered the most awaited success in the year 2021. With a trading volume of nearly $23 billion, the industry leaves an intense mark on the public. Soon after an NFT called “Everyday”, sold out at $69 million, the unstoppable craze for NFTs began. Later, the participation of an increasing number of celebrities and brands in the NFT industry contributed considerably to the accelerated growth of the market in the previous year.
Bored App Yacht Club (BAYC) is one of the most desirable NFT collections that auctioned a large collection in the NFT market. The collection of these unique cartoons develops hype among the NFT community. Regarded as the coolest NFTs, BAYC NFTs are being flaunted by the owners by displaying them as social media profile pictures.
The statistics according to the Opensea suggests that the sale of the NFT market was at a peak in August 2021 which starts declining with the arrival of September, October, and November months. December brings fortune for the digital tokens by accelerating the sales and recording the biggest ever sale of an NFT worth $91.8 million.
Another statistic showed that approximately 28.6 million wallets were used for trading NFTs in 2021 surpassing the amount which was just 545k in the previous year.
What are NFTs? How are they traded?
NFTs are unique cryptographically designed assets that cannot be exchanged or replaced by any other digital tokens. A rare and unique asset such as artwork, music, or any other rare collectible can be minted into NFT.
Trading of NFTs is done on the platforms known as NFT Marketplaces. Numerous NFT Marketplaces are already available in the industry offering the services to trade NFTs conveniently.
The creators can mint their work into a digital form and drop the NFT through an auction on an appropriate NFT Marketplace. When auctioned, the buyers can place a bid on the NFT to take part in the race of purchasers of the token. The user, who bids with the highest amount, wins the auction and gets ownership of the digital asset.
The worth of NFTs:
The worth of all the NFTs cannot be generalized as every token may have a different value. The difference in the properties, characteristics, desirability, the creator’s popularity, and several other factors are responsible to conclude the price of NFTs.
The NFT industry has always been controversial when discussing the use and enormous amounts being spent on NFTs. The possibilities of the future use of these virtual assets are dependent on the importance of ownership rights in the online environment. Additionally, NFTs can contribute in offering several benefits in the Metaverse space.
In the Metaverse space, NFTs are playing an integral part by facilitating the users to buy ownership rights of the assets such as virtual space. It has been expected that the NFT industry may grow significantly with the rise of the Metaverse.
NFT industry, by offering the chance for the commoners to connect with their favorite celebrities, is gaining the attention of numerous members. To exemplify, Amitabh Bachchan’s NFT collection when sold in November, last year, the sale was made for a price of 7.18 crores. Alongside, the buyer of one of the NFTs- Madhushala, grabbed the golden opportunity to meet Mr. Bachchan in person.
Not only the artists from Bollywood, but other sectors such as sports and politics are stepping into the NFT sphere. Recently, Yuvraj Singh, one of the well-known cricket players, launched his NFT collection in the market. The biggest companies such as Coca-cola, Gucci, and others have launched and sold their NFTs at extremely high prices. With the upcoming time, the NFT industry is gaining better acceptance, sales, and trading volume. Thus, in the year 2022, the experts are expecting another big move in the NFT industry.
The use cases of NFTs are not only limited to the industries such as music, art, sports, and others. The flexibility of NFTs was recognized recently when an Indian couple from Pune ties the knot with blockchain wedding. They minted their wedding vows and stored them permanently on the blockchain. The entire wedding was conducted on an online platform through a video gathering. They conduct an arrangement to exchange vows in front of a digital priest through computers.
Such applications of NFTs empower the industry to offer benefits to various other sectors. NFTs with the power of ownership rights are reshaping the vision we have for blockchain, art, and other unique assets. Several unexpected possibilities may arise in the NFT industry as the community keeps evaluating and concluding the exclusive methods of utilizing the NFTs. The traditional systems such as ticketing, streaming and many others are ready to get an update and serve the users with modern solutions embedded with NFT’s benefits.
Trading of NFTs has grown to be sufficiently convenient with the establishment of several user-friendly NFT Marketplaces. Novuszilla- one of the leading NFT Marketplaces has created a platform that simplifies the process of trading by eliminating the complexities faced especially by beginners. Their vision to connect celebrities to the commoners makes their platform one of the best places to bid on the NFT collections.
