Non-Fungible Tokens also known as NFT marketplace are a fairly recent and booming market that seems to be super popular these days. And has surprisingly drawn in a lot of attraction as well as investors over the past couple of years and is still going on strong.
Non-fungible tokens otherwise abbreviated as NFTs is simply digital asset or values that come in various forms such as art, music, and videos. They are generally encoded with the same underlying programs as crypto. It is an aggressively large market, that consists of certain systems, policies, and marketplaces. It utilizes current technology and expertise to provide a sustainable and suitable virtual environment for all.
NFTs are a trending topic of discussion but not all are aware of how to penetrate or dive into this new digital utopia or what it entails. This article is focused on educating newcomers about the basics of NFTs, their current condition, and what to expect.
Adopting new technologies and expertise has given the NFT system a significant boost. As well as the incorporation and use of the crypto market and its system as a means of exchange, trade, and sales. NFTs can be as exciting as it is overwhelming. Especially for those new to the scene and who aren’t familiar with the layout and set-up of this new virtual landscape, also known as web3.
It is one of the biggest digital markets in the world. It mainly consists of collectors, artists, and degens with a lot of other factions included. It has a good number of lingo abbreviations and terminologies such as WAGMI, FOMO, and the most prominent, GM. The largest unit of the NFT world would be the online marketplaces where NFTs are bought and sold. As well as being auctioned out to the highest bidder. Here, contracts are formed, gas fees are paid and NFTs are put up for sale.
Non-fungible tokens range from digital art to traditional, to music, online, and in-game items. And even film and these things are being sold out like wildfire, ranging from $100 to millions of dollars. With huge names such as Mike Winklemann also known as “beeple”. A popular digital artist who crafted an everyday collection of 5000 daily digital art pieces.
Having sold the “EVERYDAYS: The first 5000 days” at Christie’s for a record-breaking $69.3 million. It is stated to be truly one of a kind and accommodates media, talent as well as skills. Even programmers, web developers, data analysts, and cyber security agents aren’t left out as they’re mostly responsible for keeping these marketplaces up and running. Safeguarding user privacy and security while maintaining a user-friendly platform.
It is also important to note that there’s always a big misconception that NFTs only encapsulate the world of art and digital art, but it’s far from just that.
NFTs can sometimes be mistaken for crypto art when they’re two very separate things.
Transactions are made online via blockchain contracts or smart contracts, and done using the most commonly used cryptocurrency, Ethereum. NFTs minted on the Ethereum blockchain can only be bought or sold via the same blockchain. However, NFTs can be switched or transferred to a different blockchain for reasons such as cheaper gas fees and cheaper mints. Although a subtle fee is required to execute such actions. Besides Ethereum, you have Solana, polygon, tezos, Bitcoin, flow, etc.
To mint an NFT, you would need a crypto wallet and an account on a digital marketplace to connect your wallet to. However, a little amount of money is required to be in your wallet because some marketplaces deem it necessary. Also so you can mint your NFT on the go.
According to grandviewresearch.com, NFTs have raked in a large revenue worth 20.44 billion in 2022. And are estimated to even grow larger by the end of 2023. As a world of its own, it has grown exponentially in the past two years than it has ever done which proves promising for the future and all newcomers. However, is that all, or is that enough? With the current state of the NFT scene, if one were to take a deep dive, one would find that the market is not as perfect as it’s likened to be.
The NFT market like any other system has its challenges and its shortcomings. As happy as everyone is that the market is constantly growing, there are a few matters affecting its current state.
Although the market skyrocketed in 2022, giving birth to new projects and onboarding new artists and collectors, and even degens. Various hits to the market caused a decline in buyers and a lot of projects were left incomplete or even rugged. The likes of events such as the bear market, and crypto instability pushed a lot of investors back and left the platform cold for a moment. Other profound and solid NFT projects kept going strong, projects like the Bored Ape Yacht Club, and moon birds. But even they could not escape the adverse effects of a bear market which incurred a loss in liquidity and volume.
However, the rise back to power in the NFT volume can be attributed to certain measures and projects, and platforms introduced. It wasn’t long before projects like the bored apes’ yacht club, moon birds and other big names went back into dominating the market. It’s safe to say that the future of the NFT market is bright and sunny regardless of the setbacks and people leaving. It’s only just the beginning for the not-so-new market and we can only expect greater advancements and promise in the near future.
The era of the bull is near.
