NFTs are digital objects that are verified on the blockchain and have properties such as uniqueness and non-fungibility. They can take the form of almost any category, but most notably come in the form of art, music, items in blockchain-based video games, and videos.
Let’s discuss whether NFT will change the art world in the future and the future prospects of NFT. We are optimistic about this and believe that NFT will have a great impact on the art world in the future.
One area where NFTs have taken off is in the art world, where digital tokens are sold for tens of millions of dollars at major auction houses and elsewhere. Up-and-coming artists who once posted their work for free or sold it for cheap realized they could monetize their talent through the use of blockchain technology and NFTs.
Non-fungible tokens, still in their early stages, came into the spotlight in 2017 through a decentralized application (DApp) called CryptoKitties, where users could buy, trade and collect virtual cats.
After the NFT market surged nearly 300% in 2020 to over $250 million, these nifty digital assets have captured the imagination of traders and creative types alike. Another sign of growing adoption is the number of NFT wallets where NFT transactions occur, which nearly doubled in 2020 to more than 222,000.
You don’t have to be in the crypto space for long before you hear about NFTs — you don’t even have to be in the space at all. When you do, you may quickly decide to go down the NFT rabbit hole like the rest of the community, either trying to get a big sale or acquire some digital art to add to your own portfolio. But before that, it helps to understand the NFT ecosystem and what it’s all about.
Future Outlook
The NFT market has seen most of its impressive growth in one year. In 2020, most popular NFT platforms were yet to emerge, and 2021 has begun with an unprecedented surge in activity and transaction volume. Even if this trend continues at a slower pace, the overall adoption rate of NFTs in the coming years is likely to be unprecedented.
While non-fungible tokens can be difficult to value, characteristics such as uniqueness, tradability, talent, and whether the original artist supports the sale can all influence price. The next wave of the NFT market may see tokens tap into another craze sweeping the cryptocurrency market: decentralized finance (DeFi).
