Following the explosion of non-fungible tokens (NFTs) in 2021, when images of virtual monkeys and digital punks sold for millions of dollars, a slew of copycat ventures and self-proclaimed “NFT artists” flooded the market, generating an unsustainable NFT frenzy. We may be witnessing the bursting of the NFT bubble, especially given the multiple incidents of wash trading on various NFT platforms.
While the NFT craze is unlikely to persist indefinitely, a few NFT use cases are expected to outlast the hype cycle and cement NFTs’ place in the global digital economy.
Continue reading to discover about six NFT applications that may persist after the initial buzz has worn down.
In-game items
Integration of NFT into the gaming industry is a prominent use case that will almost certainly become a part of gaming’s future.
Even if it’s only a small part of the enormous online gaming business, play-to-earn gaming is booming.
For players, NFT in-game objects mix functionality and collectibility. Furthermore, blockchain technology may aid in the purchase and trading of genuine things, as well as the provision of reliable transaction records.
Given the amount of money going into NFT-powered blockchain games and the number of individuals playing Axie Infinity, gaming NFTs appear to be here to stay.
Memorabilia collectibles
The seemingly unstoppable digitization of our lives will almost certainly spill over into the memorabilia market, with NFTs allowing owners of digital collectibles to verify ownership.
Why would you want a physical baseball card when you can have a verifiably unique version of the one you have?
Sorare, a fantasy football platform, has also created football player collector card NFTs that can be utilized in the site’s fantasy football play-to-earn game. Furthermore, NBA Top Shot has been one of the best-performing NFT brands, with basketball fans all over the world rushing to buy “Moments” of their favorite players.
Konami’s memorial NFT auction of 14 unique Castlevania artworks is a recent example of memorabilia NFTs. The auction was held in OpenSea and raised over USD 150,000. The sale of a map of Dracula’s Castle from the original Castlevania game for USD 26,000 was the highlight of the collection.
It won’t be long before brands like Pokémon and Star Wars come on board the digital collectibles bandwagon, firmly entrenching NFTs in the collectibles market.
Consumer loyalty programs
Consumer loyalty programs, which have been out of touch with today’s customers, are about to get a makeover thanks to NFTs.
According to a study conducted by CFI Group and Radial, nearly 40% of buyers believe loyalty schemes are no longer worthwhile.
NFTs can help loyalty programs improve since they provide customers with more than just points to utilize in the future. Clinique, a cosmetics company, for example, provides users of its loyalty program the chance to win one-of-a-kind digital artworks as well as many cosmetic products over the course of a year.
Coca-Cola has recently auctioned off ‘loot boxes’ containing NFTs, including digital clothes that may be shown in the Decentraland metaverse platform (MANA).
Another advantage of NFT-based consumer loyalty programs is that smart contracts may be used to execute purchase agreements and track transactions, lowering system management expenses.
Memberships
NFTs can be used as digital tickets to get access to a brand’s product line. An NFT-powered subscription membership, on the other hand, may grant access to special items like early access to restricted offerings and limited-edition products.
VeeFriends, for example, is a community-driven NFT platform where Gary Vaynerchuk’s NFT collection is housed. You can join the VeeFriends group and use your NFT as an admission pass to VeeCon, a multi-day event only for NFT holders, by owning a VeeFriend NFT.
Community building
NFTs can be used by brands and influencers to develop communities by allowing fans and followers to feel closer to their idols.
Die-hard fans value owning a limited edition NFT of their favorite influencer, especially if the NFT comes with unique perks like meet and greets, limited edition gear, or tickets to a live event.
Furthermore, marketers can give out limited-edition NFTs to their most devoted community members or reward people who assist them expand their community.
We may foresee a rise in the use of NFTs in community-building campaigns, given that community is becoming an increasingly significant aspect of brand marketing.
Art created on a computer
Digital art will very certainly remain a popular NFT use case, whether you perceive the value in it or not.
Digital art existed before to NFTs, but NFTs democratized and monetized it for artists all over the world.
It’s doubtful that NFTs will disappear from the art market again, given that more and more renowned artists are minting their digital artwork as NFTs.
