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The Hottest NFT Trends Right Now and How They Could Impact Our Future

Thinking back over the last couple of weeks and months, no other niche in the whole crypto industry was gaining as much attention as non-fungible tokens (NFTs). Everybody is talking about it!

The NFT market has evolved into a multi-billion-dollar market in a short time. But why is that? This article will explore the hottest NFT trends right now and why we are still at the beginning of a fascinating journey. Let’s dive right in!

1. Exclusive Club Membership: Bored Apes

Bored Ape Yacht Club (BAYC) NFTs have definitely been on fire lately! The collectibles portraying bored apes in various facial expressions, colors, and outfits have sold for serious cash in the past, e.g., Bored Ape #7090 was sold for 600 ETH (~$2.25 Million) two weeks ago. Overall the BAYC series shifted more than $400 Million of total volume to date. It seriously battles CryptoPunks for the crown as the marquee NFT brand in crypto!

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Being an owner of a unique Bored Ape NFT comes with a lot of extraordinary advantages. Besides using the collectible as a status symbol, e.g., as a Twitter profile picture, owners have access to an exclusive Discord chat (including prominent sports stars like Steph Curry and Josh Hart (both NBA players) or Von Miller (NFL player)), free additional NFTs from BAYC and much more.

2. Crypto Punks

This article would be nonsense without mentioning the (current) king of NFT collectibles: Crypto Punks. One could also describe this NFT series as equivalent to the gold standard of non-fungible tokens. Just like we think of Bitcoin as the “mother of all cryptocurrencies” since it has been sticking around since 2011, Crypto Punks have already been around in the NFT niche since 2017. All other NFT series trending right now are a lot younger than the Punks. And most important: They have retained their value! Out of all NFT brands, Crypto Punks is the most “conservative” investment if you want to put it like that.

Therefore it is very likely that Crypto Punks will also stick around in the future and continue to retain their value. Like Bored Ape NFTs, many people use their Crypto Punk as their Twitter avatars or as a status symbol in general.

3. Companies buying into NFTs

We have already seen retail investors and stars investing in exclusive NFTs, but now other big players have entered the market, fueling the whole NFT mania: companies and famous brands!

Last week, Visa announced the purchase of a CryptoPunk NFT for 50 ETH (~ $165,000), intending to add it to its collection of “historic commerce artifacts.” That basically means multi-billion dollar companies start recognizing the value and potential of digital collectibles and, by that, are driving NFT mass adoption!

But Visa is not the only sonorous name investing in NFTs lately! Budweiser, one of America’s largest beer companies, bought a sketched beer rocket as an NFT last week and is now using it as the companies official Twitter profile picture.

4. Fractionalization of NFTs

One of the most problematic characteristics of NFTs is Illiquidity (explained in detail here). By splitting up NFTs into many pieces, usually ERC-20 tokens, non-fungible tokens become accessible and affordable to significantly more people. As of now, many users can not afford to buy, e.g., a Crypto Punk for thousands of dollars. In fact they are excluded from participating in ownership and communities. 

But through fractionalization, users can now buy a part of an exclusive NFT for a much lower price. Further, it allows them to use their fraction of a digital collectible in DeFi services, e.g., trading them on Uniswap or collateralizing loans on Aave. On the other side, it gives NFT owners the ability to see some liquidity from the digital asset they own without selling it entirely.

5. Usage of NFTs in Metaverses

There is almost no ceiling for the potential of NFTs in metaverses in terms of usage and importance. Non-fungible tokens will play a central role in the digital world of tomorrow!

Why is that? Well, basically because the characteristics of NFTs allow us to turn anything into a unique and exclusive digital asset. It might be a scarce carpet in the digital mansion you own or a domestic animal living in your flat. But this is just the tip of the iceberg! Think about the possibility of digitizing your ID/passport or your health insurance! There are no limits!

NFTs can even make it possible to allow anyone to create a self-determined digital identity entirely detached from their physical identity in real life. You might be wondering how this should work: Digital avatars and ENS domains make the magic happen (read more about identity in the Metaverse here)!

Conclusion

As you can see, several trends are driving the current NFT mania! To most people outside of crypto, digital collectibles like Crypto Punks or Bored Apes are nothing more than overpriced internet nonsense. But as you dive deeper into the topic, it becomes crystal clear that those collectibles are way more than just a waste of money, but actually one of the most essential cornerstones of the (digital) world of tomorrow!

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