NFTs existed prior to 2021, but there were only a few people who were aware of them.
The price of a Crypto Punk was over 1 ETH in the summer of 2020. Visa paid 150,000 Dollars for a Crypto Punk in the summer of 2021. A significant uprise was seen in its price. Narsun Studios examines some of the major events and trends of NFTs in 2021.
Advancement of NFTs
The question that was of concern a few years back was “Can NFTs be practically used?”. We all know the answer now. Yes, without a doubt.
NFTs are digital goods that are verifiably rare, convenient, and display transparency. In the future, NFTs will have a lot more applications than merely PFPs (Photo For Profile). One obvious example is digital art, the preservation and trading of the art are considered to be a wealthy business. And now there are proper marketplaces for the business and trading of NFTs, there are also marketplaces integrated into games as well. NFT’s are paving a brighter path for the future of innovative technology. Even celebrities are entering the world of NFT’s, have their own personalized ones.
Considering the evolution of virtual territory in the metaverse. The same rationale implies NFTs in terms of value. Almost everybody is spending more time online than they used to especially now that Covid continues to prevail. NFTs are becoming a success in terms of owning a piece of virtual real estate as the metaverse persists on becoming the new favorite.
A 69-million-dollar JPEG
The selling and buying of PFPs (Photo For Profile) and JPEGs trended on the Crypto-twitter throughout 2021. A digital artist whose real name is Mike Winkelmann sold his piece “Beeple” which is an NFT. The First 5,000 Days at Sotheby’s for an incredible $69 million. It was the third most expensive art item ever sold at auction.
Explosion in the Floor Prices
In 2019, Crypto Punks were sold for somewhere between $60-$600, but in 2020 same punks were sold for $600-$3,500. Those same Crypto Punks were traded for $480,000-$1.25 million in 2021.
The price floor of the two NFT collections, Crypto Punks, and Bored Ape Yacht Club, was 65 ETH and 54 ETH, according to nftpricefloor.com. In 2021, these two collections alone accounted for almost $100 million. Despite the fact that NFT trade volumes plummeted following a scorching summer, the most popular collections are expected to hold their worth.
The surge in Ethereum Gas Prices
Ethereum has seen a span of the highest transaction fees because of the NFTs. this was seen for a fact that major NFT projects were introduced where people were eager to mint. With the price of ETH growing, gas expenses for NFT mints and other smart contract interactions could become expensive in dollar terms.
NFTs in Solana on the rise.
In the summer, the Solana ecosystem stood out among blockchains, with its own NFT surge. Solana is a fantastic soil for NFTs to groom because of its nearly zero fees and lightning-fast transactions. Several initiatives arose that were strikingly comparable to Ethereum’s native NFT projects. One example is the emergence of “retail NFTs” in Solana, which are aimed at those who are not able to afford to pay dollars on Ethereum gas. And GamFi is another niche through which Solana is paving its way.
Play-to-Earn and Blockchain Gaming are a result of NFTs.
The most significant feature of NFTs in 2021 was the surfacing of Play-to-Earn games. Aurory NFT collection is built on Solana. The biggest star that stood out is Axie Infinity, the game that prompted an Avalanche. NFTs are a game-changer of the era, it took gamification in a whole new direction. They give gamers a new feeling of purpose by allowing them to own and pay out their in-game assets.
The year 2021 was a dazzling year for the NFT industry. Is it possible that 2022 will outperform this, or are NFTs due for a rude awakening? Nobody knows what turn would the market take, but NFTs are not going anywhere. Too many powerful people have taken an interest in this technology for it to simply vanish.