How does NFT continue to “break the circle” to explore the value behind it?

Since this year, the wave of NFT has been followed by waves, and the popularity has only increased. In the rapidly changing world of encryption, NFT has innovated a variety of new gameplay methods, such as avatars, pictures, art paintings, game props, virtual real estate, music albums… NFT seems to have unlimited possibilities. Recently, with the support of the Metaverse economy, NFT has continued to “break the circle”. According to incomplete statistics, dozens of brands have joined and issued their own NFTs in the past two months. The term NFT has naturally become one of the most popular concepts in the crypto market and even in many fields such as global technology, games, finance, and art. one.

What is the reason why NFT can continue to “break the circle”? “Everything can be NFT”, “Everyone can be an artist”, where is the next expansion of NFT? How long will the NFT heat wave last? How should we define the value of NFT to us?

Many companies and institutions joined, NFT became a sweet potato

Since Beeple’s NFT art paintings were sold at Christie’s for a sky-high price of 69.34 million U.S. dollars, the concept of NFT has attracted widespread attention. Many well-known international brands including LV, Tencent, Ali, ByteDance and other technology financial companies have joined the NFT queue one after another to seize this high ground. This trend has accelerated in the second half of this year. Many sports, luxury, catering and other companies announced the issuance of their own NFTs. NFTs even “penetrated” into the political field. This has made NFTs break into the public’s field of vision and become a feast. . Today, NFT has become a popular topic and focus of attention from the earliest plaything of the encrypted art circle. So, let’s take a look at which companies and institutions have recently entered the field of NFT, and how do they view NFT?

First of all, in the field of encryption, many companies have announced plans to launch NFT-related blockchain games or launch the NFT trading market.

On December 13, the well-known game company Animoca Brands announced that it will cooperate with the NFT project Bored Ape Yacht Club (BAYC) to use BAYC NFT to release a blockchain game with a P2E mechanism, and it is expected to be released in the second quarter of 2022.

How does NFT continue to "break the circle" to explore the value behind it?

Exchanges and institutional companies also lay out the direction of the NFT. Ouyi has a keen insight into this and launched the NFT trading market as early as the middle of this year to help the NFT ecology. In addition, recently, the South Korean Kraken platform also announced that it is developing an NFT market, which may be launched as early as early February next year. Jesse Powell, CEO of the platform, believes that next year will be the year of NFT. The platform also plans to cooperate with Animoca to launch P2E games. The other is that Indian IT giant Tech Mahindra will also launch the NFT market within a few weeks to help more creators and celebrities tokenize their rare digital art and souvenirs.

Secondly, in addition to the above companies, well-known media and many well-known brand manufacturers have also begun to join the NFT team. On December 22, Xinhua News Agency announced that it will be the first to release limited collections on the Xinhua News Agency client through blockchain NFT technology at 20:00 on December 24. According to reports, the series of collections are pre-released 11 pieces, each limited to 10,000 copies, and all collections are online for free. Many media, including the Associated Press, have issued NFTs before, but this time the first set of “news digital collections” in China is of great significance to the promotion of the concept of NFTs.

Then there are some well-known catering and clothing brands, such as Nayuki’s tea officially announced its entry into the Metaverse on the sixth anniversary, and took the lead in launching its own NFT digital collection in China. Followed by sports brands adidas, Pepsi, Coca-Cola and other companies: adidas launched its first series of sports classic series Originals on December 17th, the NFT series is called “Into the Metaverse” (into the metaverse) ; Pepsi launched the Pepsi Mic Drop genesis NFT series of collections, a total of 1893 pieces, to commemorate the birth of Pepsi in 1893.

In addition, it is not difficult to find that in the large-scale expansion of NFT in 2021, the sports and entertainment industries have already taken rapid action. Recently, according to a report from BasketballNetwork, basketball legend Michael Jordan plans to launch an NFT application platform and set up a holding company called Heir Inc. Now the NFT of the celebrity IP series has not only occupied a large share of the market, many domestic and foreign celebrities are trading, collecting and issuing NFTs by themselves, and NFTs have even penetrated into the “political field”. Former U.S. President Trump’s wife Melania Trump said that she would sell her “cobalt blue eyes” artistic watercolor on Solana as an NFT for 1 SOL. Part of the proceeds will be used to support foster children’s charities. On the other side, California Democratic congressional candidate Shrina Kurani, who is running for a seat in the House of Representatives, released 2,022 Solana-based NFTs as part of his campaign. NFT’s attempts in the political field have once again aroused people’s attention to this market, and once again proved the wide range of NFT applications and the speed of breaking the circle.

Why can NFT continue to “break the circle”?

According to statistics from the website, with more and more individuals and large enterprises joining, the global NFT market has reached 10.095 billion U.S. dollars. From the above work of various brands joining NFT and the application fields of NFT, we understand the current trend of rapid development of NFT. From encrypted art and collectibles to avatars, music, and sports, to games, Metaverse, and more functional public utilities, streaming media, content distribution platforms, etc., NFT has become a plaything of the niche encrypted art circle Popular gameplay. So, why can the scale of NFT expand so quickly?

First of all, one of the reasons is that NFT’s own characteristics and advantages have enabled it to obtain a relatively strong value consensus. The full name of NFT is Non Fungible token, which means non-homogeneous token. Compared with BTC and ETH, it is unique and indivisible. These characteristics enable NFT to provide a new form of digital ownership. All valuable things can be chained, including copyrights, artworks, cultural and sports collections, real estate, securities, virtual assets, emotional expressions, and so on. The form of NFT. In addition, as a value carrier like Bitcoin equivalent tokens, NFT can conduct peer-to-peer transactions around the world, with low thresholds and strong liquidity. This makes the function of NFT greatly recognized.

How does NFT continue to "break the circle" to explore the value behind it?

The second reason is the help of the explosion based on the concept of public chain games and Metaverse. With the rise of major public chains this year, the concept of blockchain games and Metaverse ushered in an explosion. The characteristics of NFT have gradually made them a wide range of circulating commodities and payment methods in games, Metaverse worlds, etc., with collections and value preservation. Attributes such as, circulation, etc., have effectively become the support of the Metaverse economic system and promote the further explosion of NFT. Taking the Metaverse game “Decentraland” as an example, each piece of land in the game corresponds to an NFT, and the owner of each NFT represents that it has the ownership of this piece of land and can create and transform it. Under the popularity of Metaverse games, the price of virtual real estate NFT also chased up. Virtual land in Decentraland has been sold for a maximum of US$927,000 in the past 7 days.

The third reason lies in the brand and celebrity effect. More and more celebrities, celebrities, and artists have launched their own NFTs, which have been sought after by many people. Coupled with the addition of many international brands and major manufacturers, they have achieved marketing goals and intensified the hot trend of NFTs. And many of these NFT artworks are sold for hundreds of thousands of dollars at every turn, with hundreds of thousands of times the income attracting more people to join this field.

Therefore, the above-mentioned reasons are the main factors that have recently promoted NFT from a niche to the masses, and ushered in rounds of outbreaks. The application of NFT has changed the rules of the game in the entire market, making artistic creation and blockchain games subvert the traditional centralized model, and also enable everyone to participate in the construction of the Metaverse world.

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