The types of NFTs you should know about in 2022
NFT (Non-Fungible Token) has been all the rage for a while now. Contrary to what many believe, NFTs are more than just images with a hefty price. They have a limitless number of potential applications. And every day, we’re seeing an increasing variety on the internet. It seems like they have completely taken over the metaverse and the world of cryptocurrency. Here are some of the most popular types of NFTs you need to know.
1. Music
In the past, large studios have traditionally distributed songs via CDs, cassettes, and vinyl, making music a fungible product. This means, however, that musicians only receive a small portion of the revenue generated by the studios and streaming services. Today, these fungible products have their digital counterparts as NFTs, which have helped indie singers and composers to publish and distribute their own music, so they can keep all of the revenue to themselves.
Music NFT is a tokenised version of a piece of music, including a song, album, and music video. Many artists have sold their albums as music NFTs, garnering maximum audience in the digital space and revenue. For example, in March 2021, King of Leon’s sold their album When You See Yourself as multiple NFTs. They generated over 2 million USD in sales. Eminem also sold his first NFT collection last year, which includes digital action figures and original instrumental beats.
2. Fashion
Clothing, footwear, and accessories are typically used in a tangible way, but fashion NFTs exist to ultimately move beyond the physical realm, creating a distinct “phygital” experience for fashion enthusiasts. A phygital is the combination of a physical and digital item, meaning the physical item is paired with its digital counterpart (the NFT). In many cases, however, fashion NFTs don’t offer physical products. Instead, people buy fashion NFTs to dress up their online avatars. While this may sound ridiculous, virtual fashion for online avatars has many fans and generated lots of money.
Numerous fashion brands have entered the NFT market for some time now. In March this year, Decentraland held the first Metaverse Fashion Week in the world. Brands like Tommy Hilfiger, Estée Lauder, and Dolce & Gabbana participated and offered NFT designer wear.
3. Artworks
Artwork NFTs are possibly the most well-known type of NFTs. That’s why art is also the type of NFT that sells best. Some of the most expensive NFTs today are artworks. Digital marketplaces give both renowned and up-and-coming artists a platform to sell their works online as though they are physical, while collectors gain exclusive access and ownership of them. One of the most expensive NFT art is called ‘Everydays: The First 5000 Days’ by Mike “Beeple” Winkelmann, which earned a whopping 69.3 million USD.
4. Game
Gaming is another frontier in the NFT space, and it has attracted a lot of interest. Since people will go to great lengths to purchase in-game items to enhance their gaming experience, game developers are prompted to employ blockchain technology to create and market NFTs in the gaming industry. One prime example is the play-to-earn gaming system, where developers make gaming products like avatars, digital collectables, and tokens in the form of NFTs.
One of the most popular play-to-earn games is Axie Infinity. It was the first video game to add NFTs in the form of characters called Axies. Players use the game’s native cryptocurrency, called Axie Infinity Shards (AXS), to trade NFT items within the game. They can also trade these items outside the game in an open market. Other popular NFT games are CryptoKitties, Sorare, League of Kingdoms, and Crypto Unicorns.
5. Virtual Land
You can own land, houses, and other types of properties in the metaverse. Represented by NFTs, these virtual lands are just like lands in the real world. This means that there will only be one plot of land in the exact location, which cannot be forged and duplicated. Those who own virtual land can build anything they want on it. A lot of people flip their land for profits or build something to earn income. For example, some people build stores to sell digital items or art galleries to showcase their NFT arts.
Various big brands had bought lands in the metaverse. Atari, for example, owns property in the metaverse platforms The Sandbox and Decentraland. People can visit the properties to play Atari-themed games and attend events. Brands like Samsung and Adidas, and even companies like PwC and JP Morgan also own virtual real estate in the metaverse.
6. Sports
Sports NFTs garnered a lot of attention from sports enthusiasts and tech junkies. They are now one of the highest-grossing types of NFTs. Numerous leading sports institutions, teams, and players use NFT to eternalise big moments, such as game-changing touchdowns and groundbreaking slam dunks.
One of the most famous sports NFT marketplaces is NBA Top Shop, which was developed by Dapper Labs in association with NBA. It has video clips of some of the most iconic basketball moments. The LeBron James Dunk Throwdowns (Series) is among the most expensive sports NFTs ever sold. It earned around 380,000 USD.
7. Collectables
The next popular type of NFT is collectables. Since ancient times, people have had the idea of gathering uncommon items and artefacts. And today, NFTs are modernising the market by allowing people to tokenise and trade digitally rare items. This means that you can now buy and trade virtual versions of trading cards just like physical ones. Aside from trading cards, companies also sell all kinds of NFT collectables. Basically, anything that can be seen as collectables can be put on the NFT market. The most popular NFT collectable is possibly the Bored Ape Yacht Club, an exclusive collection of 10,000 apes with trendy outfits living on the Ethereum blockchain. Celebrities like Justin Bieber, Snoop Dogg, Gwyneth Partlow, Stephen Curry, and even Madonna have bought the Bored Ape NFTs.
8. Memes
Yep, you can buy and trade memes on the NFT market. Since memes have ingrained themselves into our pop culture, it seems sensible for content producers to be able to charge internet consumers a fair price for their best memes. What’s interesting is that in some cases, the person in the meme is the seller. Popular memes like Bad Luck Brian, Nyan Cat, Disaster Girl, and others are already on sale. The most expensive meme NFT ever sold is the iconic Doge meme, which was sold for a staggering 4 million USD in June last year.
The NFT world is definitely interesting. There are so many items you can buy in the NFT market, and yet it’s still in its early stages and will continue to grow in the future. So, are you interested in buying and trading NFTs?
