Non-fungible tokens (NFTs) have created quite a stir all through 2021, quickly transitioning out of something mysterious and dorky to one of the most favorite products of digital consumer culture, with global searches for the term “NFT” appearing to have surpassed those for “Crypto” for the first time, according to Google Trends. While the crypto market has witnessed a drop in trading volumes in recent weeks, NFT sales have soared on marketplaces like OpenSea, and with major businesses collectively mulling an entry into metaverse platforms, it appears probable that consumer interest in NFTs will skyrocket by 2022.
The rise in demand, as originally reported by CoinTelegraph, corresponds with statistics supplied by OpenSea, an NFT platform that handles a substantial portion of NFT purchases internationally.
According to figures released in November, OpenSea sales volumes have increased by a stunning 14,500 percent when compared to 2020, totaling more than $10 billion (roughly Rs. 75,176.91 crores). While OpenSea now holds the majority of NFT sales volumes, it’s just a matter of time before a non-Ethereum-based sector emerges.
What is the appeal of NFTs?
Non-fungible tokens are one-of-a-kind digital assets or collectibles developed with blockchain. Each NFT has its own distinct identity and information that sets it apart from others. Every NFT is algorithmically validated through the blockchain, ensuring that the proprietor is always recognized since the transaction is recorded on the digital ledger.
The Ethereum (ETH) cryptocurrency is most commonly used to buy and sell NFTs. However, because they are one-of-a-kind digital assets, they do not have an exact monetary value.
Similarly to how a rare diamond is not equal to any other rare gem because it is unique, the value of NFTs is typically established through bids or by the makers directly.
NFTs, on the other hand, is far more than just “digital assets,” whether they be artwork, music, photography, virtual reality pieces, or anything else. A growing village has built up around NFTs, comprised of creative artists who feel emboldened by the ability to market their products autonomously and sustain themselves in this way.
Popular companies such as Nike and Adidas are making their own forays into the domain of metaverse NFTs, demonstrating the exponential surge in sales for NFTs. Celebrities like Snoop Dogg, Grimes, Steve Aoki, Mila Kunis, and Melania Trump are also advertising their own NFT collections to the public, which is increasing demand.
Also, there are NFT-based applications like Axie Infinity and Sorare, which allow learners to know about crypto and NFTs while also earning money as a side income while playing computer games.
And yet NFTs aren’t just a tool for self-promotion. Companies and organizations have devised a method to direct earnings from NFT sales to non-profits or charities. Not only may cryptocurrency holders acquire magnificent pieces of art, but in nations such as the United States, they can also subtract their gifts from their conventional earnings to save on taxation, resulting in a win-win situation for everybody.