These days, we all see the widespread popularity of NFTs on the internet and everyone has shown interest in them. Creators and investors have produced incredible numbers that have changed their lives forever. Earlier this year, for example, Beeple’s $69.3 million sale of NFT broke down barriers on the internet and changed the way the world views these digital collectibles.
Recent statistics show that the popularity of NFT is growing rapidly. Typically, in 2020, the total sale value of NFTs was $250 million, while the first quarter of 2021 witnessed a total selling value of NFTs at $2 billion.
If you are interested in NFTs but do not understand how NFTs make money, Hekate is here to help you take advantage of this currency!
When it comes to absolute profitability generation, individual NFT artworks are by far the most valuable NFTs ever created.
On March 11, the history of blockchain technology and the history of art changed forever when Christie’s, one of the world’s most famous auctioneers, sold an NFT artwork for 69 million dollars. It was the first time Christie’s auctioned an entirely digital artwork.
The piece titled “Everydays: The First 5000 Days” was created by a digital artist named Mike Winkelmann, also known as Beeple. NFTs are not a single work of art but a collage of 5000 coded images that Beeple has created on a daily basis over the years.
While some are expressing concern that the sale of a digital painting for millions of dollars could be just a front for money laundering, others believe that NFTs are a real revolution in the art world. The record price set by Beeple’s NFT could soon be surpassed. Beeple was, until recently, a completely unknown artist. If someone like Banksy were the person who auctioned off this piece of NFT art, the price would likely have been much higher than $69 million.
Encrypting collections is one of the most appropriate applications of NFT, and it is likely the most obvious way to handle collections. Those who have participated in the business of tangible collectibles such as jewelry, memorabilia, trading cards, and other items now only have to trade like what they have done with digital assets. Given the NFT’s ability to prove unpopularity, the value of collectibles can be significantly higher than their physical counterparts.
The most popular collection by far is the sports card. Initially, the sports card project only allowed the trading of licensed player cards. Now, the National Basketball Association (NBA) has also launched a collection of NFT cards. It is more likely that other sports will follow and the collections will have more sports NFTs to buy.
This does not mean that other collections do not perform well. As discussed earlier, physical collectibles can be converted into digital assets and purchased, traded, or sold as such. While physical transactions and handling can damage collectibles, NFTs never lose their quality as they only exist in digital form and are securely stored on the blockchain.
Read more: The role of NFTs in the creative economy
Video Games NFT
NFT-based video games are likely to be the future of NFT technology. To date, no NFT-based game has become widely popular, but the potential for NFT to be applied to video games seems huge.
Gamers have been known as people who regularly spend money on virtual items in online games such as World of Warcraft’s gold, Call of Duty’s loot boxes, or Counter Strike’s skins — All of these markets are already worth billions. If any video game company decides to sell in-game items under NFTs form, such a decision will have an enormous impact on both the gaming ecosystem and the blockchain.
It should also be noted that NFT video game developers are among the most ambitious Non-Fungible Token creators, and NFT in-game items can accelerate the development of Non-Fungible Technology.
Compared to simple digital trading cards, or even to more interactive NFTs like virtual artworks, NFT in video games is by far the most advanced. The NFTs used in video games can be complex, fully interactive, and they can change over time, such as by being upgraded or leveled with the player’s character.
Investing in NFT Startups
The final way to directly make money with non-fungible tokens is through investing in startups. If there is one thing that helps NFTs prove that they are not a passing crypto trend, it is because they have many applications in different industries that can change the world. There are many promising NFT startups that are introducing great innovations in the crypto world. It would be impressive if you could invest in them as they take their first steps into a revolutionary future.
As the big fish continue to pour more money into the NFT, the NFT is sure to become more popular. Currently, playing games, trading collectibles, and creating NFTs may be accelerating the popularity of NFTs, but there are more ways you can make money through them. Just like any other investment, there are always some risks associated, so remember to do extensive research and a wise investment.
NFT technology has many unique applications and the full potential of NFT just starts to be discovered. It seems that the NFT craze only starts as more and more individuals and businesses decide to join the NFT ecosystem. The fact that the most popular NFTs currently are still simple images shows that the market is still undervalued – the real explosion in NFT popularity may not begin until NFTs show off the full potential of new technology.