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The explosion of NFTs in the crypto scene has created incredible hype in 2021, with holders of images of digital apes or punks becoming crypto-rich almost overnight and a new wave of digital artists emerging to sell their work as
However, the NFT hype is slowing down, more and more copycat projects are emerging, and instances of wash trading are becoming increasingly more obvious, putting doubt on the ability of the NFT hype to continue much longer.
At the same time, a number of NFT use cases will likely survive and could end up being integrated into the global digital economy.
Read on to learn about seven NFT use cases that will likely outlive the NFT hype.
NFTs can prove ownership of digital collectable items and memorabilia.**
Think of how convenient it would be to own a verifiable version of a unique baseball card instead of holding a physical baseball card.
Sorare, a football fantasy game, has already been successful in designing player collectable card NFTs that can be used in the play-to-earn game. Moreover, the highly popular NBA Topshot NFT collectables have been one the best-performing NFT brands, enabling basketball fans to collect digital ‘Moments’ of their favourite basketball players.
Chances are high that popular brands such as Pokemon, Star Wars, and Star Trek will start incorporating collectible NFTs as part of the merchandise and interaction with fans.
**NFTs are poised to revamp consumer loyalty programs that have become outdated and often no longer appeal to the consumer.
For example, the cosmetics brand Clinique rewards its loyal customers with NFT artworks, a radical shift from traditional shopping points. Moreover, Coca-Cola auctioned ‘virtual loot boxes’ and digital apparel that can be displayed in the Decentraland **
NFT-based consumer loyalty programs enable brands to go digital and have a transparent record of their most loyal consumers.
Brands and influencers can leverage NFTs to reach out to followers and fans who want to feel close to their idols.
Holding a limited edition NFT of your favorite influencer is what many die-hard followers wish for, especially if it provides special privileges such as limited edition merchandise, tickets to live events, or meeting their idols. **
Moreover, brands can drop limited edition NFTs to reward community members as well as drive community engagement on social platforms.
One of the big promises of NFTs is that they could become the basis to build a digital consumer connection for brands.
Pushing product lines into the digital economy is not the only use for NFTs. Companies that leverage NFTs exclusively for collectibles or digital art are missing a more important trend. Looking into the future, NFTs may be the focal digital anchor between brands and their customers.**
Ralph Lauren is already selling branded digital apparel in metaverses like Zeppeto while Dolce and Gabanna
Brands can incorporate NFTs in their digital branding strategy to create more brand awareness in light of growing interest in web3 and the metaverse.
Even with the contraction of the crypto “art” market, digital art will likely remain one of the most popular NFT use cases.
NFTs have democratized the digital art market, making it easier for artists to make money from their work regardless of where they are located.
While the latest monkey-themed NFT drop will likely not result in 1000x gains for their holders, real artists selling digital art in the form of NFTs will likely remain a part of the global art market in the future.
**The incorporation of NFTs into the gaming space will likely become the bedrock of future play-to-earn gaming.
NFT technology can improve nascent play-to-earn gaming by offering in-game items that combine the utility and collectability of players. NFTs can enable gamers to buy and trade genuine in-game items, provide accurate transactional data, and show proof of ownership.
While the gaming community at large is not a fan of NFTs as they consider them another form of in-game microtransaction created to make developers money, popular P2E games like Axie Infinity are proving the potential for NFTs in the P2E sub-sector of the gaming industry.
As the NFT hype around JPEGs settles down, we will begin to see more creative ways for artists to monetize the use of NFTs. In the future, musicians will create NFTs to auction off different forms of digital media to their fan base. Their fans can pay for these using digital currency like
They could also use NFTs to prove sole ownership or add several buyers to the NFT. Moreover, a music artist can receive royalties in perpetuity, particularly when a buyer of digital copy sells the file to somebody else. This way the process of music and monetary ownership is democratized, and the artist has more power over his art.
Cases of music NFTs are on the rise. In February 2021, DJ and music producer
Whether you are a fan of NFTs or think they are a scam, in all likelihood, they will remain a part of the digital economy.