Non-fungible tokens (NFTs) have taken the world by storm in recent years and they are here to stay.
According to Chainanalysis, in 2021 alone, users sent a minimum of $44.2 billion worth of cryptocurrency to ERC-721 and ERC-1155 contracts, Ethereum’s smart contracts associated with NFT marketplaces and collections.
Weekly total cryptocurrency value and average value per transaction sent to NFT platforms
From the graph, it is evident that there is a significant increase in the total value sent as well as the average value per transaction throughout 2021. The significant spike in total value sent in late August is in line with the release from popular NFT creator group, Bored Ape Yacht Club — who now have a token (APE) as well as their NFT series -whilst the average value per transaction spike was highly driven by the sale of one Cryptopunk NFT that was sold for $532 million. Simply put, NFTs as an asset class are gaining value as more users join the market.
NFTs are more than just art
There is a misconception that NFTs are limited to the art world, when in reality it is so much more than just art. Whilst owning an expensive Cryptopunk or any other form of digital art can be satisfying for some, it is not the only use of NFTs.
An NFT represents unique cryptographic tokens that exist on a blockchain and cannot be replicated, certifying ownership digitally. This means that NFTs can represent real-world assets including music, collectibles, event tickets and even real estate. By tokenising these real world, tangible assets, they can be bought, sold and traded more efficiently. They also cannot be broken down into smaller units or fractionalised the way cryptocurrencies can; cryptocurrencies and indeed fiat currencies are fungible.
For more information on the real estate market and how you can be more involved in the metaverse through real-world assets, please visit the Bricktrade website to find out more: https://bricktrade.co.uk/
Bricktrade is the UK’s first property investment platform that is set to revolutionise and reinvent the purchase of real-world assets. Bricktrade will facilitate the tokenisation of real estate assets, opening them up to the possibility of investment from crypto market participants whilst simultaneously providing real asset-backed investments, as well as allowing property purchases entirely funded by cryptocurrencies.