HomeTechnologyNFT boom a fact or cap: $17.7 billion sales in 2021

NFT boom a fact or cap: $17.7 billion sales in 2021

Is “NFT” a growing industry? What is NFT?

“NFT ruled 2021 by hitting historical sales records of $17.7 billion. It is a dominant story of 2021. “NFT” is a form of digital asset that ruled the crypto world with its attraction and popularity.

NFT has become a popular topic. It’s something; whether you like it or hate it, you can’t ignore it. Memers created memes, and celebrities never shied away from flaunting their expensive jpegs, aka NFT

What exactly is an NFT? or perhaps a non-fungible token?

So here comes a question, What exactly is an NFT? or perhaps a non-fungible token? 

NFT is not just a million-dollar JPEG bought by celebs or a Twitter avatar. It’s not a picture of a cool-looking ape or a pixeled image with a unique design of graphics. These scissors are as simple as scissors, a gif with some movement, or the same picture with a little different background, a cartoonish avatar in blockchain-based video games.

You can have a break if you consider NFT to be just all of the above-mentioned types. You are wrong. These are the things that can be represented as NFTs. 

NFT is, basically a blockchain-based token that defines that you are the one and only owner of any kind of digital item that can exist in the digital world- so it can be anything—solely not only JPEGs. 

A term that may puzzle you and which is related to NFT is, “Smart Contracts.” These are the codes that enable or power the NFT token on the blockchain mechanism. The NFT token makes any digital asset un-replaceable and unchangeable, which means if you tokenize a piece of digital art, it will belong to you and only you. This information is logged on different computers around the world continuously. Because of these smart contracts, you could easily make any transaction (sell or purchase) for any NFT art, maybe royalties for music albums (in the near future), use of assets in games and metaverse worlds, and much more. 

Avoid Piracy

To avoid piracy (illegal use of assets), content creators believe that in the near future, all types of content creators, such as musicians, photographers, vloggers, and educational activists, will tokenize on blockchain to protect rights. Because of the multiple copies on multiple servers and robust mechanisms, it is challenging to hack or reuse the same data with your name if it is tokenized on blockchain.

After getting a sense of NFT, the next thing to know is

 How does NFT record the history? 

Before 2021, NFT was just a niche for just a few months ago. It wasn’t a topic of buzz. People barely know about NFT, minting (integration of NFT on the blockchain ), and the marketplaces where they are listed.

But when the year 2021 started, something that was almost nowhere became a highlighted topic. It was the 1st quarter of the year that sports and celebs showed up in this field, with massive marketing and not trading volume touched almost $200 million in only two months of February and March. Here’s the thing: this trading volume exceeds the total sales generated by the NFT market in 2020.

This wasn’t the end of the trend. The artists and celebs were the highlights of this NFT boom. From musicians, Grimes to Rob Gronkowski, or the creators like LAU and Pak, who are known for their crypto-oriented art, created a huge hype. A great success story was initiated when Beeple stunned people with a history-making single NFT sale of $69.3 million (which was the third-largest sale by any artist ever) in early March.

These sales made people curious about what would happen next, but things didn’t go well afterward. Many famous figures dropped without creating that hype in the market again, as was created by the Top Shot. Just like Logan Paul, a YouTuber with 23 million subscribers, and Jake Paul, his brother, both of them launched their unique NFT projects, but things didn’t seem to be going well for them from the beginning of the launch of their NFT projects. 

Open sea, the leading NFT marketplace, increased its trades from $150 million to $329 million in just a few months.

Some of you may still be wondering whether the NFT boom is an illusion or if there is any reality, thus adding a question mark.

Does the NFT industry have any future? 

As 2022 started, the crypto market faced a bloody crash. We can still see a significant persistence in the NFT market, making it more stable than crypto prices. NFT prices have shown a little change. The chief blockchain officer, Yohan Calpu, shares his thoughts, 

“People who are buying NFTs are interested in culture and art. People buying crypto are interested solely in an investment or a risky asset.” 

We can say that the NFT market is making its way towards growth. More and more people are becoming a part of this NFT world. A January 2022 report shows a significant increase in demand for NFTs with 7770,000 unique NFT buyers, which is 2500% more than previous years’ stats. Here we can say that no matter whether the crypto market is in a crash, it is still paving the way for newcomers in the exotic world of NFTs. 

These NFTs are becoming more affordable for newcomers in the NFT market, making them more popular. However, this fact can be denied. With this bulk production, the value of NFTs won’t be maintained and sustained by the market in the long term, making it more and more casual.

Conclusion:

With the flow from 2021 to 2022, we can see a boom in the NFT industry. Ironically this simple niche became an industry in a few months, making us realize it is the future. But with, this bulk production and increase in demand make us wonder whether it would be managed to sustain its value. I am leaving here a question for you guys. Share your precious thoughts with us. Stay tuned for more updates.

Best of luck, NFT lovers!

Arham Abbas
Arham Abbashttps://technologyways.com
Muhammad Arham Abbas a Professional Freelancer Developer & Blogger With SEO Skills.
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