Cryptocurrencies have skyrocketed within the past couple of years due to several factors. One of those primary factors was the COVID-19 pandemic, which ironically helped popularise cryptocurrencies as people were searching for new ways to make financial fruition. Additionally, individuals wanted to divert away from traditional methods of investments such as stocks, property, and forex. Along with the rise in interest in cryptocurrencies comes other digital components such as utility tokens, decentralised finances, and non-fungible tokens. The latter has recently become a huge factor in blockchain technology, with NFTs often being incorporated into crypto networks. But why are NFTs so relevant in the metaverse today?
The Evolution of NFTs
Non-Fungible Tokens, also known as NFTs, are best described as cryptographic tokens that cannot be replicated and only exist within a blockchain. They can represent real-world products such as real estate properties like Allister Place Apartments Tampa FL 33617 or artwork, giving users the capability to distribute and display content while being able to monetise from it. Essentially, the incorporation of NFTs in blockchain technology has permitted a more efficient way to purchase, distribute and trade digitally.
Additionally, NFTs decrease the chances of fraudulent activity taking place. The idea of an NFT was heavily discussed in the early 2010s, being labeled as ‘coloured coins’ which would be issued on Bitcoin. However, NFTs emerged as a piece of Quantum artwork in 2014, minted on the Namecoin blockchain. The artwork was constructed by Kevin McCoy, showing a video of his wife Jennifer. This is widely regarded to be the first NFT in the metaverse.
The Current State of NFTs
Ever since Quantum came into the metaverse, many blockchain networks have capitalised on the digital component by having designated NFT marketplaces and clubs. Take a prominent blockchain network like Solana (SOL) for example, which has its NFT marketplace called Solanart. This is a platform where users can display their best digital works. There are a range of different collections on Solanart for people to choose from, such as Degenerate Ape Academy, Samoydecoin, and Yeah Tigers. Solana is one of the most reputable cryptocurrencies on the market, with a solid current market capitalisation of ninth on Coin Market Cap.
Another blockchain network that has garnered attention for its use of NFTs is Shiba Inu (SHIB). SHIB recently collaborated with Black Forest to construct a series of NFTs for the FIFA World Cup 2022. Block Forest is a decentralised network that operates on the Binance Smart Chain. This was announced in May 2022, the same month that the NFT World Cup launched five NFTs that convey different countries’ flags. Shiba Inu launched in August 2020 as a meme coin substitute for Dogecoin and has become its direct competitor.
An upcoming blockchain network that plans to enter ranking in the top ten NFTs is Big Eyes (BIG). As stated in an article published by Analytics Insight, one of the primary objectives of Big Eyes is to build a community around its mascot, a big-eyed kitten designed in an anime/manga-inspired style. The developer of Big Eyes has been stated to be its mascot, which they believe is targeting a ‘billion-dollar industry’ with its cuteness. BIG has an NFT group called the ‘Sushi Crew’, which gives BIG token holders who enjoy owning cute and fun things.
