The world of NFTs is changing rapidly, from CryptoPunks and Pepe memes to smart contracts or loan collateral. The non-fungible tokens (NFTs), which allow for legal ownership and secure sale of digital assets, have changed how we view them. Have a look at these Amazing Facts About NFTs!
NFTs are the future for many artists and collectors. They allow financial freedom and investment opportunities, as well as creative freedom.
Top Facts About NFTs
- Unique NFTs. NFTs are unique, unlike cryptocurrencies like Bitcoin. Each NFT is typically minted using the Ethereum token standard ERC-721. It is a unique asset that can be purchased as much as you are willing to pay.
- Smart contracts can be interpreted as any digital thing that can be converted to an NFT.
- Any digital object can be made an NFT. Although digital art and collectibles are the most popular topic, tokenization technology allows for almost any item to be tokenized. A smart contract can link domain names, in-game assets, and tweets to establish proof of ownership.
- NFTs help artists reach new audiences
- NFTs are being viewed as the next disruptor in the art market. This sector was previously dominated exclusively by traditional investors. Super rare, Nifty Gateway and OpenSea bring together investors and artists such as Trevor Jones and Fewocious to find the next big thing. The market is full of opportunity, with over 1.4 million unique users daily and more than $1.2 billion in sales in July 2021 alone.
- NFT’S FOR REAL ESTATE AND VIRTUAL LANDS
Virtual Real Estate is a market in the NFT space. Many collectors of NFTs are making millions by investing in Virtual Real Estate.
- These virtual worlds allow you to buy a home in the Metaverse or buy land for your home. It is a fact that land in the Metaverse can be scarce. These are some NFT projects that are entirely based on Virtual Real Estate.
- The majority of NFTs are available on Ethereum
- While other blockchain networks can also mint NFTs, Ethereum is the most widely used. Although Ethereum supports fungible tokens such as ETH, it is different from other blockchains like Bitcoin in that Ethereum supports non-fungible tokens. This allows for additional information to be stored about the token. Although other networks, such as Enjin, can create their own token standards like ERC-1155. Most still use Ethereum as their underlying network.
- NFTs are a great investment opportunity. NFTs are attracting investors to participate in the digital gold rush. NFTs such as Cryptopunk #7523 have seen their value increase by 71,000% over the past few years. It has gone from $1646 to $11.8 Million in years. Investors are eager to catch the next big thing.
- There are many opportunities to invest in this space, even though it is still very young. For 0.58ETH ($1,400), Fidenza #313 (generative art) was sold in June 2021. It was then sold for 1,000 ETH ($3.3 Million) two months later.
- NFT artists may receive indefinite royalties.
- NFTs are different from traditional art, where the artist gives up all rights after the piece is sold. Instead, they allow for steady income. Blockchain technology and smart contracts allow the original artist to receive a portion of every sale, even if the piece is sold multiple times. This usually ranges between 5-10%.
- In 12 months, the NFT market grew by 18,000%
- The NFT market saw a staggering $13.7 million in sales during the first six months of 2020. Twelve months later, the NFT market saw a staggering $2.5 billion in sales. The 18,000% increase in transactions has translated into a healthy and thriving economy. The sales numbers are still high, with August 2021 seeing $3.4 billion in sales, which is more than the entire first half of 2018.
- In the NFT world, forgeries are not possible
Experts warn that more than half of the art available on the market may be fake. This means that there are significant risks when investing in art. NFTs are a solution. They allow artists to prove their provenance and establish ownership through the blockchain ledger.
- Since the NFTs, Ether has seen a dramatic increase in value.
The price of Ethereum has risen by 960% since the initial NFTs were issued. A single ETH was valued at $320 in June 2017. The same coin now has a value of around $3,400. Although the evolution of blockchain networks didn’t occur overnight, the value increase of ETH is partly due to NFTs.
- Digital currency has seen an increase in its use in NFT transactions. This has benefited its value. As ETH’s value is expected to rise further, it may make sense to buy now and reap the benefits in the future.
Also, check out 12 Fascinating Facts About VR