Every day the world is moving towards technology reliance at tremendous speed. Since the internet of things launched, the next tech frontier is piped to be the Metaverse. All technology bridges the gap between the digital world and the real world to create a virtual reality universe.
With this market’s revenues pipped to grow at an annual CAGR of 43%, what are the options available for investors to be part of this phenomenal growth? The answer is NFTs.
The term NFT is an acronym for non-fungible tokens. It is a technology that strides two of the current technological frontiers, blockchain technology and the Metaverse universe.
2020 expenditure from the NFT key categories recorded $1.05 trillion, shedding light on this small corner of the cryptocurrency market to drive the market cap to $1 billion by October 2021.
What is an NFT, and how does it work?
When it comes to blockchain technology, it is synonymous with transparency, security, and its feature that makes it unalterable. NFT technology goes a step further to add a unique feature to those already shred with cryptocurrencies and other blockchain-based technologies.
It is blockchain data, certifying a digital asset as unique and unalterable through a unique digital certificate. Unlike cryptocurrencies that can be traded and exchanged for one another, NFTs uniqueness means that none is like the other or equivalent in value. For example, an investor can trade Bitcoin for equal value Ethereum. However, for NFTs, none is equal to the other or interchangeable for equal value.
Many in the gaming community are already conversant with how NFT works. In the video gaming universe, players have used NFTs to transact to acquire gaming accessories and skills needed for advanced-level gaming. Major global brands have already identified the gaming industry as a potential market for their products, given that it is bigger than the sports and entertainment industries combined. Gucci has a contract with Roblox, where it offers exclusive items as in-game accessories for purchase.
At present, the revenue model for virtual items in the video game industry is a whopping $175 billion market annually. The art world has also adopted the NFT currency with people interested in owning the digital certificates to popular global art and upcoming art projects. The beauty of NFT is that it creates value for anything physical or digital. For example, the Twitter founder put up the first tweet for sale, and it fetched a staggering $2.9 million.
The best three growth Metaverse NFTs for 2022
Ethereum might be the pioneer NFT provider, but it is no longer a monopoly. With the increased market for NFT and related virtual products, most cryptocurrencies are coming up with their own NFTs to cash in on its ever-increasing popularity. In the Metaverse world of avatars, NFT demand will only grow, and the scarcity of NFTs will only amplify their value.
№ 1. Doge NFT (DOG)
Market capitalization: $268.32 M
We got the Doge crypto coin from the most popular iconic internet meme of all time. Now, it has evolved to offer a fractionalized NFT option available for anyone to own. It exposes investors to an authentic digital certificate of the original doge canine by Atsuko Sato.
With an average daily trading volume of $702681, the DOG has the liquidity backed by its origin’s popularity to take the Metaverse universe by storm. In addition, its corresponding cryptocurrency is among the most stable coins. To top it off, DOG has the highest liquidity, number of tokens available for exchange, at $30.19 million, meaning it is ready for the explosion experienced in the Metaverse universe.
№ 2. Etherrock #72 (PEBBLE)
Market capitalization: $59.44 M
With upwards of 72 million pebble coins ready for supply, Etherrock #72 has the asset base to supply the Metaverse universe. This NFT has a market capitalization of $59.44 million, with a liquidity of $11.06 million.
Emblem Vault fractionalized this NFT. As space exploration kicks up a gear, PEBBLE might digitally itemize out of space rocks which will be worth a fortune.
№ 3. PUNK Floor (FLOOR)
Market capitalization: $50.67 M
No industry has enjoyed the NFT fruits outside the gaming community than the art world. Keeping the art world culture alive, art-based ETFs have made millions for artists as collectors strive to get bragging rights on the digital space. One of the beneficiary NFTs is line PUNK Floor NFT.
This non-fungible token has a market capitalization of $50.67 million, with its liquidity standing at $15.91 million. It is one of the pioneer arts NFTs and runs on the Ethereum platform. As the Metaverse expands, having art items as part of this universe will be a basic need rather than just a playing field for the super-rich, positioning this art NFT strategically to reap these fruits.
Science fiction is unrealized reality. The Metaverse provides a way for individuals to achieve otherwise unreachable goals. More and more companies are adopting and working with NFTs fueled by the flexibility of their format. With more organizations looking into the digital space to expand their revenue streams, NFTs provide a solid launchpad, and the ones above are ahead of the pack.