Utility NFTs are leveling up the NFT space to amount to more than an over-saturated hype. Utility NFTs bring added value to collectors, with various tiers based on the benefits, access, and opportunities they provide to the token holder. These tokens have a clearly anticipated inherent value in addition to their scarcity. The new concept of NFT utility has been broadly categorized into social NFTs, community NFTs, gambling NFTs, fantasy-sport NFTs, and in-game NFTs.
In 2021, Jack Dorsey sold his first-ever tweet as an NFT for $2.9 million but this week in auction no one bid more than $280 and bids on OpenSea have dropped by 99%. Why? Potentially because this collectible has no NFT utility and therefore provides zero value to the token holder. The NFT industry is not flopping, the loss on this trade is due to collectors having a new need for value, for example, Bored Apes provide extra perks and benefits to holders.
Utility NFTs may prove very successful for organizations by giving them an edge in a saturated market and providing long-term incentives for consumer uptake. Even the most basic utilities enable buyers to draw a new form of value from an NFT. Rather than judging the art's appearance, utility determines its worth. Projects that have utility have started to outperform those that do not.
It could be said that NFT art is as successful as the artists’ personal brand and status attached to the commodity. It is the same as an artist having to work for their physical art. NFTs can be used to authenticate physical art and other physical items.
NFT art is one of the most popular categories of NFTs. These are mostly digital artworks that come with a digital ledger-issued public certificate of authenticity and ownership.
Sports memorabilia is one of the most common NFT categories, with the NBA Top Shot being the most well-known NFT in this category. There are also a host of NFT-based video games in which participants compete for prizes such as cryptocurrency, digital assets, and other NFTs. The NFT has several more prominent categories such as social, events, ticketing, and community driven NFTs.
Check out some of the NFT projects providing utility to token holders:
- Metakey Genesis Editions is the first of four sets with special perks, material, characters, discounts, and airdrops available to keyholders across many platforms, blockchains, and games.
- Frank Miller created Funky Monkey Frat House on an artist incubator site. The POOL PARTY liquidity pool and trading platform are available to NFT holders.
- On Polygon, Coinleague is a fantasy crypto gambling and NFT platform. It's similar to the popular fantasy sports leagues and competitions. This time, though, NFT holders receive a portion of the revenue from contest fees and other contest bonuses.
- Snapshot is a decentralized voting method that produces outcomes that are gasless, easy to verify, and difficult to refute.
To learn more about NFTs and their new use cases keep an eye on Supermoon Camp, an exclusive community of blockchain experts and enthusiasts that are propelling cryptocurrency adoption to new heights. Supermoon Camp is committed to educating and bringing the crypto industry to higher levels. See one of the upcoming NFT categories at FlashBack.One of the first NFT ticketing platform that bridges art, event organizers, and event lovers, while also enabling organizers to create bespoke and art-like NFT tickets that enthusiasts can buy, sell and store for decades.
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