Reasons for NFTs Growing Popularity

July 13, 2023
reasons for NFTs growing popularity

What Are NFTs?

Non-Fungible Tokens (NFTs) are digital assets that use blockchain technology to signify ownership or evidence of the validity of a certain good or piece of information. Unlike fungible cryptocurrencies like Bitcoin or Ethereum, which can be transferred one-to-one, NFTs are distinct and irreplaceable since each one is unique and indivisible. Here are mentions some reasons for NFTs growing popularity.

Blockchain technology is often used to create NFTs, offering a decentralized and transparent system for tracking ownership and transaction history. NFTs’ value is influenced by a number of variables, including demand, perceived asset value, and scarcity. NFT marketplaces are online venues where NFTs can be purchased, sold, and traded.

 

When Did NFTs Become Popular?

Non-fungible tokens, or NFTs, significantly increased in general acceptance during the first quarter of 2021. They did start to appear a few years earlier, though. NFTs were first introduced in 2017 with the release of CryptoKitties, a blockchain-based online game developed on the Ethereum platform. Users of CryptoKitties were able to purchase, trade, and breed exclusive digital cats as NFTs.

The sale of Beeple’s digital piece “Everyday: The First 5000 Days” for $69.3 million at a Christie’s auction was one of the major events that took place in the first few months of 2021. A larger discussion regarding the worth and possibilities of NFTs was ignited by this arresting transaction, which attracted the attention of the world’s media. The use of NFTs to monetize and validate digital works of art, music, collectables, and other digital assets then became popular among many artists, musicians, and celebrities.

Since then, a variety of businesses and people have adopted and experimented with NFT technology, supporting the growth in popularity of this technology. It is important to keep in mind, too, that the NFT market is prone to interest and demand changes and can be very volatile.

 

What Benefits Come with Owning an NFT?

With NFTs, individuals can demonstrate ownership of digital assets. When an NFT is resold, the original owner receives a portion of the sale thanks to the ability of NFT owners to programme royalties for themselves. The wonderful thing about NFTs is that, despite numerous copies, the identity of the original file’s owner can always be established.

 

Features of NFTs that Make Them Popular:

Features of NFTs that make them popular
    1. Uniqueness:

NFTs can be easily verified because they are distinct and verifiable on the blockchain. This is essential to digital assets because it can be challenging to distinguish between copies and originals of a given file.

    1. Scarcity:

NFTs are frequently hard to come by, hence there is a constrained supply of them. Because people are prepared to pay more for something that is rare, this may increase the value of NFTs.

    1. Transparency:

Since the blockchain is a transparent ledger, it is simple to trace an NFT’s ownership history. Artists and makers may find this beneficial since it enables them to learn who has previously owned their creations.

    1. Revenue streams: 

Smart contracts can be encoded into NFTs, allowing creators and artists to receive a portion of each subsequent sale of their creations. Because they can continue to profit from people’s appreciation of their work in the long run, this can give creators a new source of income.

    1. Access:

NFTs are digital, making it simple to access them from any location in the world. They become more tradeable and available to a wider audience as a result.

    1. Collectibles:

The sale of collectables like trading cards, sports artefacts, and even virtual real estate has grown increasingly popular using NFTs. This is due to the fact that NFTs provide a chance to possess these items in a way that is both rare and special.

    1. Tickets:

Tickets for events like concerts and sporting competitions can also be represented by NFTs. This can make it simpler to trace ticket ownership and stop fraud.

    1. Digital art:

NFTs are increasing in popularity as a means of selling digital art because they give creators the chance to do so while ensuring that the buyer receives the original, one-of-a-kind piece. Traditional digital art cannot be replicated or shared as readily as this does.

 

NFTs That Are Most Popular:

    • CryptoPunks:

CryptoPunks is a collection of 10,000 unique pixel art figures that were produced in 2017. They are regarded as among the first NFTs, and they have become very popular among collectors. #7523, which sold for $11.8 million in June 2021, was the most expensive CryptoPunk ever sold.

    • Bored Ape Yacht Club:

In April 2021, the 10,000 distinct Bored Ape NFTs that make up the Bored Ape Yacht Club were introduced. Each ape differs from the others, and they all have unique characteristics including attire, accessories, and expressions on their faces. The Bored Ape Yacht Club has grown very popular among celebrities and other high-profile people. #3749, which fetched $2.9 million in September 2021, was the most expensive Bored Ape ever sold.

    • Axie Infinity: 

In the blockchain-based game Axie Infinity, players can acquire, breed, and engage in combat with virtual pets called Axies. On the Axie Infinity market, you can buy, sell, trade, and exchange Axies. In the Philippines, Axie Infinity has gained a lot of popularity and has been a source of income for many. A “Mystic” class Axie named “Mutant Killer” that sold for $3.3 million in March 2021 was the most expensive Axie ever sold.

    • CryptoKitties:

A collection of 10,000 unique digital cats called CryptoKitties was produced in 2017. One of the first NFT initiatives to receive widespread notice was CryptoKitties, which contributed to the idea of NFTs becoming more well-known. A “Genesis” class CryptoKitty named “Dragon” was the most expensive CryptoKitty ever sold, selling for $1.3 million in December 2017.

Contact Us
    • NBA Top Shot:

NBA Top Shot is a blockchain-based platform that enables fans to gather and exchange digital NBA highlights. The highlights are NFTs, which can be bought, sold, and traded on the NBA Top Shot marketplace. NBA Top Shot has amassed millions of dollars in revenue and has become incredibly popular among NBA fans. LeBron James’ “Mic Drop” moment, which was sold for $230,000 in February 2021, was the most expensive NBA Top Shot moment ever to be auctioned.

 

Summing Up:

NFTs will continue to be popular for some time to come. Their rarity and distinctiveness draw customers. Looking for NFT Development Services and taking advantage of the prospects is profitable because NFTs can sell for millions of dollars. You can design distinctive NFTs with Rain Infotech Private Limited to meet your demands and specifications. Contact the experts now!!

CTO at Rain Infotech Private Limited | Blockchain Enthusiasts | Hyper Ledger Fabric | Certified Bitcoin, Ethereum & Blockchain Developer
Bitcoin's
Mehul Akbari

What Is Bitcoin?

Bitcoin is one of the earliest cryptocurrencies to use blockchain technology in facilitating peer-to-peer payments. Through a decentralized network, bitcoin offers a reasonably low transaction

Read More »