NFT or non-fungible tokens are believed to be unique codes, which are used to create ownership and authenticity on a blockchain. Supposedly, NFTs are individual tokens that can’t be copied or substituted. With insights from The Block, a crypto-based research platform, the current market value of NFTs stands at around $28 billion. The total value of NFT transactions has increased to over $13.7 billion in the first half of 2021 as per reports from NonFungible.com, a NFT market research platform.
“In February 2022, an NFT Cryptopunk #5822 was sold for $23.7 million and was the most expensive NFT sold till date. Also, in August 2021, the musician Grimes sold a collection of NFTs for over $5.8 million” Vikas Ahuja, CEO, Metaverk, told FE Blockchain. Furthermore, NFTs have the ability to unlock new revenue systems for creators and artists. Moreover, NFTs digitised and programmable nature allows innovation and smart forms of exchange with other digital currencies.
It is believed that the rate of adoption of Metaverse is about 400 million monthly active users and if more people join this, a currency will be needed to navigate. “As the digital world of metaverse becomes a reality, there is a need for a digitally native currency and asset ownership paradigm which can be done through NFTs,” Gaurav Arora, SVP, DeFi Initiatives, CoinDCX, told FE Blockchain.
According to reports from Statista, a market research platform, the sustainability market will clock to $417.35 billion by 2030. In relation to this, digital currencies are believed to be sustainable, which is why people are expected to shift towards Ethereum. Reportedly, Ethereum consumes about 142KW per hour (Kilowatt) which is much less than NFTs, which consume around 340 KWh of energy. “The sustainability of NFTs has been a topic of debate due to the potential environmental impact of the blockchain(s) that are used to create and trade them. However, there are efforts underway to address the sustainability issues associated with NFTs,” Dilip Chenoy, Chairman, Bharat Web3 Association, concluded.
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