What comes to your mind when you think about “collectibles”? Records, paintings, gaming cards? Well, in the era of Web3.0, like everything else, “collectibles” are digital! These digital assets are NFTs. Now, as you might already know, NFTs are blockchain-based digital assets which can be traded using cryptocurrency. Like any other “collectible”, each NFT is unique. Talking about the ‘value’ of these digital assets, NFTs are a billion dollar business! The NFT industry grew up to 21000% in one single year, from $82 million in 2020 to $17 billion in 2021 and is expected to grow by $147.24 billion during 2022-2026. With celebrities and major industries warming up to this new integration of art and business, it is expected to reach new heights in the next few years. While some people are still confused about investing in ‘intangible’ assets, the others are keen to buy the next ‘big’ thing in the NFT market. Nobody can really comment if NFTs are going to become the new ‘safe investment’ or is it gonna fade away over time but if you’re looking to invest in one now, you might want to know these facts!
1. Community is everything : Community plays a very important role in shaping a business, whether it’s the real world or the ‘meta’ world! To put it in simple words, a business supported by the most famous celebrities is likely to gain more popularity as compared to the one that has more ‘traditional’ marketing approaches. The value of NFT at the time of sale hugely but not solely depends upon the community that supports it. In 2021, celebrities like Eminem, Paris Hilton, etc. bought NFTs from the BAYC – no wonder it’s one of the most famous and valuable collections of all time!
2. NFTs generated by the ‘gaming’ industry have a lot more value than what we classify under the ‘art’ category. Well, we’re not shocked! Metaverse is a gamer’s paradise and if they don’t accept everything that comes along with Web3.0, who else will? Cryptokitties, NBA Top Shot, etc. are some of the most famous NFTs from the gaming world.
3. As we already mentioned, the value of NFTs greatly depends on the community that supports them, it is relevant to say that 85% of the transactions are made by the top 10% traders. Again, it works just like the real world where not everyone is interested in buying certain collections but the ones that get addicted to it, want them all! It’s not rocket science – it’s as simple as copping the most hyped pieces in fashion, just in a different context.
Now, NFTs are a fairly new concept for the world so it’s difficult to identify if they’re gonna be as popular as they are today in the coming years or if they’re gonna go down or maybe a few years down the line, we’ll be living in a world dominated by NFTs. What we know for sure is that the market is highly influenced by celebrities and gamers and they’re the ones trading to make great investments and even profits out of it. It is too early to say anything about the future NFT market but there’s a lot of potential to grow as it is one of the major economy drivers in the metaverse. Now, we don’t wanna sound like we know it all but celebrities, metaverse, gaming, crypto – doesn’t that sound a lot like HELON?
Sources :
NFTs: four “secrets” to understand their real value
