6 mainstream types of NFT

While the simple CryptoPunk started the NFT wave, NFTs now include far more than profile picture art and collectibles. Today, hundreds of new projects on the blockchain are proposing dozens of new use cases (some more popular than others).

This article aims to provide a handy classification guide for beginners, introducing the 6 mainstream NFT types on the market today.

Collection

Collectibles were the first NFT type to hit the mainstream. Back in 2017, people started paying top dollar for strange types of computer graphics known as Curio Cards, Rare Pepes, and CryptoPunks. A few years later, the term “NFT” became a household name, and the useless profile picture for holding and collecting became synonymous with this category of digital assets. Then came the Bored Ape Yacht Club, the Mutant Ape Yacht Club, and more, all trying to turn the community around these collectibles into something bigger.

BAYC, MAYC, and CryptoPunks are the largest aggregate items by market capitalization, trading volume, and reserve price. Compared with the art and digital asset game categories, they are the most popular projects and are also included in the NFT Marketplace blue chip projects.

artwork

Another popular type of NFT is digital art.

The most prominent feature is that artists can own the copyright of their own works of art, and buyers can rest assured to purchase genuine licenses to prevent forged copyrights. In addition, artists do not have to rely on third parties to obtain protection for their works, eliminating intermediary fees and ensuring artists get more income.

Most impressive was artist Beeple’s “Everydays: The First 5000 Days,” which sold for a whopping $69.3 million at auction in March 2021. It has prompted another wave of NFT art types, and NFT art projects continue to emerge. For example, a representative project is Art Blocks Curated, which ranks 7th in terms of transaction volume in the past 30 days.

Digital asset games

At present, many games adopt the Play to Earn model. Each character in the game is an NFT, such as the avatar, equipment and cards in the game. Players can obtain these digital assets by participating in the game. They believe that the uniqueness, scarcity, transferability and ownership provability of NFT are of great significance for enhancing the value of in-game items.

However, after NFT gradually became popular in early 2021, the P2E game program combined with NFT has obviously attracted many people. The data shows that the number of users participating in the game will increase month by month until reaching an all-time high in January 2022.

Axie Infinity was one of the first companies to use this model to allow players to spend more and more time in the game. The most notable country is the Philippines, where hundreds of thousands of people play NFT games every day. During the epidemic, they earned more income by playing games than traditional jobs. Various modes of game-related applications, such as M2E, followed.

Sports

NBA Top Shot is one of the most successful cases of cooperation between professional sports and NFT. NBA Top Shot is essentially a collection of basketball cards in NFT format with its own marketplace. One of the most famous clips from NBA Top Shot is the clip of Lebron James dunking — part of the Throwdowns series. It currently sells for over $380,000, making it one of the most expensive sports collectibles ever built.

website domain name

ENS domains are built on the Ethereum blockchain and are custom encrypted wallets containing recognizable names or numbers. They simplify the typical Ethereum address, which is just a long string of alphanumeric characters, the most popular of which is “.eth”.

ENS domains can be used for website addresses and applications, and can also be sold as NFTs. Users can register domain names for between $5 and $640 on the Ether Name Service website.

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According to the leaderboard of Footprint Analytics, ENS: Ethereum Name Service has ranked in the top 10 in terms of transaction volume in the past 6 months. The sharp rise in user interest in it is mainly due to the fact that these domain names can be traded for millions of dollars.

The biggest downside to encrypted domains, though, is that most browsers don’t currently support them.

virtual reality

The virtual world includes digital games and land in the virtual world. While still highly speculative, these types of NFTs have huge potential, potentially being used for advertising in digital games, creating virtual assets, and more.

summary

Many different types of NFT projects have emerged. Not only is it closely related to digital and virtual assets, but with continuous breakthroughs in technology, real-world related NFT applications will continue to be created, and transactions will become more transparent and secure from there.Nft Development Solution.