The phrase NFT was booming all over the internet only a few months ago. Now for the most recent trend: the soaring prices for digital arts sold as non-traditional tokens. Beeple, a digital artist, was auctioned for $69 million at Christie's. I believe it indicates that digital artists are here to stay. Anyone in this field has to confess that the scale, ferocity, and speed with which the industry evolved astounded them. The number of wallets purchasing NFTs increased dramatically, as did the amount of NFT transactions overall. Many NFT artists' rates rose risen as well, but they quickly dropped back down. NFTs that were once scorching hot are now starting to cool down. The secondary market for most of Beeple's paintings, as well as most NFT work, is down 90-95 percent from its height. NFTs, on the other hand, have recently been on the rise once more.
The metaverse is a virtual universe (or worlds) that is evocative of games and films like "Ready Player One," Roblox, and Fortnite. It was first popularised in Neal Stephenson's 1992 science fiction novel "Snow Crash." People can trade and preserve digital assets that revolve around a fully functional real-world economy inside this area, allowing them to live vicariously through their avatars.
While some aspects of the metaverse market remain hazy, others, such as non-fungible tokens (NFTs), have evolved as a foundation for the system's internal architecture and economy. People use NFTs to buy virtual land plots, event passes, avatars, and other digital products in the metaverse.
NFTs and Real Estate Investing
People are utilising NFTs in the metaverse to acquire virtual land, such as LAND - a digital piece of real estate in The Sandbox, as previously mentioned. Instead of a tangible deed, these virtual places use NFTs to show ownership of specific regions inside a virtual environment.
LAND occupies around 300 square feet in the Sandbox game world. The size of property parcels in Decentraland is reduced to 50 square feet.
Users who own a large number of parcels of land can combine them to form a single estate. "The Secrets of Satoshi's Tea Garden," for example, is a Decentraland estate made up of 64 different parcels of land. Because of its size and location, it sold for 1.3 million MANA (about $80,000) in 2019. The "land" is completely encircled by digital highways, making it easy to navigate.
The Metaverse Group purchased an estate in Decentraland in 2021 for 618,000 MANA, which was roughly $3.2 million at the time. In digital real estate, as in the real world, location is essential, and plots near access points or sites like virtual stadiums that guarantee virtual foot traffic tend to gain in value.
Rent and lend
People can rent their NFTs to earn passive revenue based on market demand.
PARSIQ's IQ Protocol, a decentralised finance (DeFi) technology that allows game producers to make money, allows landowners in the metaverse to do so.
The IQ Protocol helps virtual landowners generate yield and rent fees through specified conditions that are negotiated with renters and enforced by smart contracts, similar to the dynamics of traditional property and real estate.
NFTs can let investors receive passive dividends in addition to royalties earned by authors when NFTs are sold or resold on secondary marketplaces. One example is a $222,000 auction in December 2020 for a portion of a digital Monaco racing track in the F1 Delta Time game.
The NFT that represents the digital track entitles the owner to 5% dividends from all races held on it, including race entry fees and yields from "Elite Events" that require participants to bet REVV for entry.
NFTs and gaming
Play and earn incentives
The play-to-earn (P2E) paradigm has generated entirely new virtual economies through games like Axie Infinity and Aavegotchi, which reward users with assets like NFTs and in-game cryptocurrencies that can be traded, sold, or borrowed. Other games, such as Battle Racer, help to increase utility by distributing car pieces as individual NFTs. Users can then use these parts to create their cars or sell them separately on sites like OpenSea.
Although it is still years away, the methods in which NFTs are used in these blockchain networks can be used to skins and cosmetics in more mainstream games such as Fortnite. Not only would this assist players in better reflecting the ownership and uniqueness of their goods, but it would also boost global in-game spending, which is expected to exceed $74.4 billion by 2025.
Epic Games, the software creator and owner of Fortnite, will let any game that accepts NFTs into its store, but it will not directly distribute or engage with NFTs due to what it considers to be market frauds.
Virtual Life and NFT's
Avatars and social events
People collect NFTs for the social credit, status, and sense of belonging that can be found in a community of like-minded supporters, as evidenced by Twitter's recent acceptance of NFT profile images.
The collaboration between Gutter Cat Gang, a group of NFTs, and House of Kibaa, a developing virtual reality studio, is one example of how avatars are evolving in the metaverse. House of Kibaa is working together to create animated 3D avatars for all Gutter species, with the community being eligible for special raffles for free upgrades such as weaponry, wearables, vehicles, pets, and real estate such as trap houses and mansions in the House of Kibaa metaverse.
Private Events and Parties
Meanwhile, NFT passes can be used to monetize virtual events, parties, and concerts that take place across many metaverses. Snoop Dog, an avid NFT supporter, artist, and entrepreneur, teamed with The Sandbox to organise a private party in September 2021. To attend the event, 1,000 NFT party passes were made available, with 650 available on The Sandbox's marketplace, as advertised on The Sandbox. The Snoop Private Party Pass provided consumers access to Snoop Dogg's private life, including exclusive NFTs, experiences, and the opportunity to have Snoop Dogg perform an exclusive concert on their LAND.
Snoop Dog is one of many brands and influencers who have collaborated with The Sandbox on NFT-related events and releases. The Walking Dead, Atari, and Warner Music Group are just a few of the names on the list.
Why Are NFTs The Keys To Getting Into The Metaverse?
NFTs are ushering in a new era of the digital world - the Metaverse - with their rapidly expanding use cases.
Facebook's launch of Meta, signalling the shift towards a metaverse era, where NFT-based augmented experiences are likely to act as pillars for next-generation social networks, best exemplifies the coming of metaverses on the world scene.
NFTs and metaverses are already intertwined, particularly in blockchain gaming and other interoperable games, where they serve as value carriers for large-scale digital social media. NFT gaming is popular, despite being a relatively new concept, as evidenced by Binance NFT's Initial Game Offering (IGO). This new gaming arm has garnered such positive feedback from gamers and crypto consumers that it has already surpassed $16 million in trade volume in just two weeks, with all of IGO's NFT collections sold out.