According to incomplete statistics from Nansen, from the beginning of 2021 to February 2022, the number of NFT projects has increased by 2,000 times, and new PFPs appear every day, but the market performance is not healthy.
1 out of every 3 projects has almost no trading activity, and 1/3 has a break. The homogenization problem of NFT is serious. Every startup must have a whitelist process, and WL sweepstakes are flooding on Twitter. Most of the usage scenarios of NFTs are the same and nothing new.
Paying attention to the development of NFT can not just pay attention to the instant fireworks of the project. This article will start from the usage scenarios, analyze how PFP-type NFTs are applied to virtual galleries, Metaverse avatars and equipment, NFT-Fi, clubs and Web3 social rights, and give specific examples.
NFT + virtual gallery, PFP as exhibits
ONCYBER is an NFT 3D and VR showcase platform. Here, users can enter any virtual pavilion, enjoy NFT pictures, and observe NFT three-dimensional models up close. Users can also create rooms to showcase their NFTs.
A corner of the ONCYBER virtual pavilion
ONCYBER represents NFT galleries with relatively pure functions, which are mostly 3D/VR/virtual pavilions. Users can get an immersive experience. Curators can convey their own technological and artistic aesthetics to the audience.
Such NFT galleries will also extend social functions. Taking isotile as an example, in addition to supporting users to create their own rooms and display NFTs, this project will also develop into a Metaverse, where users can visit and chat with each other, so as to make like-minded friends in the NFT world.
isotile social renderings
There are also less purely functional NFT galleries that double as NFT transaction auctions, or are NFT trading platforms themselves. These platforms generally display featured series, artist series and other sections, and also provide users with NFT files.
SuperRare User NFT Profile
Gallery is the most direct usage scenario of image NFT. In real life, every city has galleries and exhibitions are held from time to time. Galleries can be said to be a universal way for human beings to express their aesthetic views and trends of thought.
NFT galleries have their own values and needs. Such projects counted by Bibi News include: ONCYBER, The IC Gallery, isotile, MetaSpace, etc.
NFT + Metaverse, PFP as avatar and equipment
Decentraland is a very typical NFT Metaverse. Through keyboard and mouse operation, users can run in the vast virtual space, enjoy the landscape from various perspectives, and visit buildings with different appearances and functions.
NFT is mainly used to carry land, wearable equipment, items, etc. in Decentraland. Here, you can deeply appreciate the composability of NFTs as on-chain assets.
In front of the Axie Infinity Pavilion, more than a dozen little monsters are jumping in front of you, instead of being limited to the characters in the 2D chain game, which makes you feel very cordial;
Front view of Decentraland Axie Infinity Pavilion
BAYC, World of Women, etc. exhibiting in The Sandbox ‘s NFT Institute; Larva Lads, etc. hosting parties in Worldwide Webb, etc., are all good examples of NFT composability.
The Sandbox NFT Institute中的World of women
Based on this composability, more and more PFP projects have cooperated with the Metaverse. They buy land, real estate, and hold various events in the Metaverse.
NFTs are no longer static assets in the Metaverse. Players, brands, and project parties have created UGC based on NFTs, giving NFTs and the Metaverse new gameplay.
Sotheby’s Virtual Auction Promotional Video
Async Art and Maker Virtual Pavilion
Another feature of the NFT Metaverse is the integration of chain games and DeFi elements. Among the 31 NFT Metaverses counted by Bibi News, half of them involve chain games, and 5 involve DeFi games.
Take Aavegotchi for example. The flagship game The Gotchiverse is a P2E NFT role-playing game. Users swim in the Metaverse, harvest Alchemica, build equipment, and fight against liquidators, which is a typical chain game method.
At the same time, the Aavegotchi ecosystem supports token staking, NFT leasing, and will launch a DEX called GAX in the future to trade game tokens. These all reflect the DeFi attributes.
It can be seen that the NFT Metaverse provides a venue for chain games and supports more complex interactions between players. And DeFi can promote the circulation and appreciation of NFT assets in the Metaverse.
In addition, Bibi News observed that most of the NFT Metaverse belongs to “hybrid”, which has the functions of NFT transaction, chain game, and DeFi. Land auctions and leases have become the start-up plans for many projects.
There are not many projects that integrate existing NFT small pictures and truly develop into VR virtual worlds/Metaverses. Such projects have better technical capabilities and community base. Such projects counted by Bibi News include The Sandbox, Decentraland, Cryptovoxels, Worldwide Webb, NFT Worlds, Atlantis World, Aavegotchi, etc.
NFT-Fi, PFP embedded in DeFi Lego
NFT-Fi is currently the most operable PFP application scenario. Through statistics, Bibi News found that the subdivision functions of NFT-Fi mainly include four categories:
First, the leasing of NFT assets, including the leasing of Metaverse real estate, equipment, and the right to use NFT avatars.
Double is a representative of the NFT leasing project, and the APP already supports the leasing of Decentraland plots and properties. Users can filter out the virtual land and real estate they need by selecting the lease period, price, category, location, and size.
Virtual land plot and real estate leasing interface in Double
Second, the transaction, pledge, and farming of NFT or NFT fragments.
Fractional and NFT20 are representatives of NFT fragmentation attempts. For example, a user pledged 22 Cyberkongz NFTs on NFT20 and minted 2200 KONZG20 tokens. Each KONGZ20 represents the ownership of 1/2200 of the NFT. These KONGZ20 can also be traded and farmed on Uniswap .
The case of NFT fragmentation on NFT20
In order to solve the problem that NFT cannot be reorganized due to the loss of NFT fragments or the inability to buy them back, Fractional also proposed the Buyout Auction model.
Third, obtain loans by staking NFTs.
Representative projects include Arcade and Strip Finance. Take Loan Bundle 19 on Arcade, for example. User A pledged BAYC #4743, posted a loan demand of 180 WETH, and provided an APR of 18.25%, with a loan duration of 90 days.
Suppose user B is satisfied with the offer and offers user A a loan. Then after the 90-day expiration, if A can return the principal of 180 WETH and pay the interest of 8.1 WETH as scheduled, he can get back BAYC #4743. Otherwise, BAYC #4743 will be assigned to User B.
NFT-Based Loan Demand on Arcade
Due to price volatility, the NFT lending market often sees liquidations of the underlying assets. Platforms like X Carnival also set up a trading market for clearing NFTs, which is convenient for users to pick up leaks.
Fourth, crowdfunding to purchase NFTs and providing loans for the purchase of NFTs.
Bridgesprit allows users to form small groups to bid on NFTs. The PINE project supports providing loans to users first, allowing users to gather funds to buy NFTs. After the user pays off the loan, the NFT is released into their wallet.
In the crypto world, there are still no perfect solutions to problems such as NFT pricing, price fluctuations, and liquidity fragmentation, resulting in the delay in finding an exit for the financialization of NFTs. However, we have seen many attempts. In the future, these puzzles may be solved with hundreds, or even dozens, of lines of code.
In the real world, the participation of real assets (non-fungible assets) in the financial market is not inferior to that of cash and stocks (homogeneous assets). In the crypto world, we should also believe in the potential of NFT-Fi.
NFT+Proof of Stake, PFP as club pass and Web3 social portal
A project in the crypto world that fully exploits the NFT club pass functionality is the Bored Ape Yacht Club.
By airdropping mutant ape serum, BAKC, and APE to BAYC holders, and providing BAYC holders with purchase rights such as boring ape T-shirts, Apefest, and participation in real yacht parties, BAYC has built a vibrant community and has become an NFT. The most reputable project in the market.
The community has spawned BAYC-based comics, sitcoms, streetwear, wine gameplay
In the Web3 social scene, projects such as POAP only issue NFT badges to active users on a specific chain, so NFT has become a good user classification label.
For example, the RabbitHole Adventure Badge marks a user’s acquired skills and knowledge. Project Galaxy’s airdrop of GAL can be refined to users who hold specific NFTs.
If the development of NFT only relies on storytelling and hopes to resonate with certain social groups, its value will not be sustainable.
NFT as an exhibit in a virtual gallery, NFT as an avatar equipment item in the Metaverse, NFT as an element embedded in DeFi, and NFT as a proof of equity may be 4 important paths for the further development of the PFP project.
Note: This article is not intended as investment advice
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/evolution-of-nft-small-pictures/
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