BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
SUBSCRIBE
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result
Home NFT

Mainstream NFT Adoption will be Driven Mostly by their Utility

BlockNews Team by BlockNews Team
October 11, 2022
in NFT, Opinion, Technology
Reading Time: 4 mins read
A A
CryptoPunks on phone
2
SHARES
27
VIEWS
Share on TwitterShare on Reddit

The popularity of NFTs for art, music, and gaming exploded over the last year. The project’s utility is the driving success factor for any nonfungible token (NFT). Many industries show growth potential for utilizing NFT smart contracts in supply chain logistics, healthcare, real estate, and more.

You might also like

Sony & NFTs? Sony Announces Cross-Platform NFT Framework

Moonpay CEO Seeks Mass NFT Adoption with the ‘”Mom Test”,

HowToPulse Launches NFTonPulse.io, A Brand New Innovative NFT Marketplace

NFT Utility

The inherent value of any NFT comes from the key benefits provided to the community of holders. If blockchain is attractive as a trustless ledger, NFTs are valuable for providing undeniable proof of ownership and provenance.

Some communities, most notably members of the Bored Ape Yacht Club (BAYC), have leveraged their NFT ownership to expand their brand. For example, four members of the BAYC community partnered with M&M to release a limited-edition candy. Another holder sold a bottle of champagne with a photo of his ape on the side for $2.5 million.

Community-driven ownership is the essence of Web3, and the BAYC examples above provide insight into the impact this model can have on holders. This particular community is giving fans of their art a material benefit as owners and participants in the brand rather than simply being observers.

User Demands & Market Shifts

Reuters reported that NFT sales plunged last quarter, down 60% from the previous. Analysts have expressed skepticism about the value of collectibles and appear more interested in NFTs for their utility in streamlining monetary transactions in the metaverse.

Current conditions and projections indicate that gimmicky projects with little or no value will dry up, while projects with genuine utility will succeed over the long term. These “winners” will become the examples recognized by the general public who associate owning an NFT with tangible value.

Dual World Utility

NFT ticketing is one of the most active use cases for events in the real world and the metaverse. The market for NFT tickets is estimated to reach $68 billion by 2025.

Strong community bonds and digital wallets enhance the value of tickets as collectible items. NFT tickets can provide artists, event organizers, and other stakeholders with ongoing royalties, incentivizing a stronger bond within the community.

All tickets are nonfungible, yet only tickets issued and transacted on a blockchain cannot be stolen or forged. Smart contracts can also allow NFT tickets to have a set price, limiting secondary market price hikes by brokers.

In other words, blockchain-based ticketing prevents scalping and creates a fair secondary market. Blockchain technology and NFTs make it easier to determine when and where a ticket was purchased and to monitor transactions.

Metaverse Real Estate

Virtual real estate is estimated to have a compound annual growth rate of 31% for the next five years. Individuals may purchase digital plots of land on metaverse platforms as NFTs. In April, the creators of BAYC, Yuga Labs, sold 55,000 parcels of metaverse land in The Otherside metaverse for over $300 million.

People can build, work, socialize, play games, and advertise their enterprises on NFT land. The worth of the plot depends on several things, like the value of the project it will play host to and its proximity to other valuable lands in a particular metaverse.

Different metaverses offer different values and characteristics for their digital real estate. Decentraland is one digital universe that is essentially a digital extension of the real world. Large companies like J.P. Morgan have opened a virtual lounge in Decentraland. Many concerts and events take place in Decentraland as well. Landowners can earn revenue from hosting events, selling advertising space, and making their land a popular user destination.

Other digital worlds are essentially games. The Otherside metaverse is an MMORPG (Massive Multiplayer Online-Role-Playing Game) where 10,000 players can simultaneously interact and chat. Each plot of land in this particular metaverse has characteristics and rarity associated with the resources, quests, and other artifacts available in the online game.

Conclusion

Utility promotes ownership over short-term flips and disincentivizes individuals who think NFTs are a path to get rich quickly. Creators who provide utility to buyers of their projects are the most likely to succeed in the long term. Adoption of NFTs by the general public will likely occur naturally as the wide variety of NFT use cases continues to grow and expand.

Tags: NFTnft adoptionNFTs
Tweet1ShareShare1

Recommended For You

Sony & NFTs? Sony Announces Cross-Platform NFT Framework

by BlockNews Team
March 21, 2023
0
sony logo

An online patent suggests that tech giant Sony Interactive is exploring the use of NFTs on their PlayStation Platform. The patent's details can get complicated in parts, but...

Read more

Moonpay CEO Seeks Mass NFT Adoption with the ‘”Mom Test”,

by BlockNews Team
March 21, 2023
0
moonpay

MoonPay is working towards its goal of "onboarding the world to Web3," according to its interview with Decrypt MoonPay has developed Hypermint - a platform that allows businesses...

Read more

HowToPulse Launches NFTonPulse.io, A Brand New Innovative NFT Marketplace

by BlockNews Team
March 20, 2023
0
howtopulse

NFTonPulse.io has launched a new NFT marketplace designed for artists, collectors, and enthusiasts. The marketplace, currently in beta on the Goerli Ethereum testnet, will soon be available on...

Read more

Microsoft Edge Browser Tests Native Crypto Wallet Integration

by BlockNews Team
March 20, 2023
0
microsoft

Microsoft is reportedly experimenting with a non-custodial crypto wallet integration for its Edge browser, aiming to make crypto and Web3 more accessible and user-friendly. Leaked screenshots reveal a...

Read more

Cassava Network, An African Web3 Platform, Has Partnered With Non-Custodial Wallet To Widen Crypto Reach In Africa

by BlockNews Team
March 17, 2023
0
Africa web3

Cassava Network's v3 aims to build a bridge between Web2 African users and the Web3 space. Cassava Network partners with UniPass, a non-custodial wallet to onboard more African...

Read more
Next Post
Portugal-Crypto

Portugal To Introduce 28% Crypto Tax in 2023 Budget

Related News

US Flag with Bitcoin

The US Puts Out A Warning Strike On Crypto, How This Could Affect Crypto Standing in The US

December 11, 2022
Ripple Logo

Ripple Commits to Zero Carbon Emissions by 2040

September 23, 2022
DREAMY NFT

DREAMY NFT

August 2, 2022

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Crypto Exchange GMX Proposes Deployment to Coinbase Blockchain March 22, 2023
  • Bitcoin Price Prediction: BTC Back Below $28K As US Banking Crisis Escalates March 22, 2023
  • Crypto Flourishes in Vietnam with 16.6 million Holders March 22, 2023

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?