There are close to nine different verticals in the NFT space, including avatar collections, DeFi NFTs, collateralized NTSs, virtual worlds, trading marketplaces, play-to-earn games, music Nfts, and many more streams being created utilizing different forms of utility. The total trading volume observed on marketplaces combined with games like Axie Infinity is over $16 billion to date. The Bored Ape Yacht Club just crossed $1 billion in trading volume on OpenSea.
, it is expected the NFT market will at least achieve $17.7 billion in trading volume by the end of 2021.It is true that NFTs act as a medium to help democratize digital asset creation and exchange. They can also be used to monetize player-owned economies or facilitate further growth in the creator economy by empowering independent artists and creatives to monetize their loyal fan base.
With the rise of BAYC, we saw more collections taking on the 10K PFP collection approach. Some had similar success and others failed miserably. The point here is — people resonated with NFTs such as BAYC, MAYC, and CryptoPunks because they introduce emotion, scarcity, and authenticity in a single digital format on the blockchain. Additionally, they have a massive online community in pop culture to support the project and drive more attention. But there’s more.The growth of NFTs is mind-blowing.
In the music industry, NFTs can potentially break down the barriers for independent artists and help them create new business models that compensate in an equitable way. Many artists are currently exploring new avenues involving crowdfunding albums and revenue-sharing programs, with fans owning particular NFT sets.
For studios, this can act as a new avenue for marketing and film promotions. It is far simpler and more cost-effective to launch an NFT collection than traditional movie promotional activities. In addition, the possibilities with NFTs are endless. Outside of films, NFTs can help creators raise money for their films. By leveraging Defi protocols and NFT marketplaces, content creators can start crowdfunding for their video products by tokenizing or selling NFT sets. On top of acquiring required capital, creators can also build a passionate community that allows them to interact and distribute exclusive clips or content directly. So NFT-backed financing for films will be a game-changer for independent artists in the Hollywood industry.