10 NFT Types You Should Know
Digital art might have seen the most proliferation among non-fungible tokens, nevertheless, it is in no way the only form of NFT around.
Wed 29th Jun 2022
Non-fungible tokens are already known to be digital assets that are rare, unique, and scarce. They are known to be born out of creativity and can never be replaced with any other token (not even another NFT). This is due to the unique metadata that individual NFTs carry.
To a newbie who is just venturing into the space, it might come as a surprise to know that not all NFTs are digital arts, and in fact, there are different types of NFTs. If you are new to NFTs, then this piece is for you as it details the different kinds of NFTs you could consider adding to your portfolio.
Below are ten different types of NFTs you should know about. Let’s get started!
You can link NFT collectibles to limited-edition items which usually have a set number on sale. Collectibles are NFTs that are created in collections. They are one of the first sets of NFTs to ever be launched on the blockchain. These arts derive their value from being limited in supply, and unique, and each item in the collection has its own peculiar traits and attributes.
Crypto Punks is known to be the first-ever NFT collection to be launched on the blockchain. Launched in 2017 by Larva Labs, the Crypto Punks collection comprises 10,000 unique NFTs boasting 6,039 males and 3,840 females.
Other notable collections have since emerged after CryptoPunks with the Bored Ape Yacht Club having risen to be the most valuable NFT collectible you can acquire at the moment.
Arts are the most widespread form of non-fungible tokens around. Digital art has created unique opportunities for art creators all around the world to showcase their artistry and creativity to a global audience. Accompanied by a digital certificate of authentication, several digital arts have been sold at record prices in recent years.
Some of the highest recorded digital art sales include Beeple’s “Everyday: The First 5000 Days”, which sold for $69m, “The Merge” which sold for $91.8m, HUMAN ONE ($28.1m), The Clock ($52.7m), among others.
If you are wondering why in-game assets make this list, here are a few stats - the global gaming industry is currently valued at about $300 billion and it is expected to grow up to $314 billion in 2026. At present more than 2 billion people around the world are estimated to play games. Featuring prominently in what gamers do is the acquisition of in-game assets in the form of character skins, weapons, and in-game heroes, among others.
The advent of the Play-to-Earn gaming model on the blockchain has been a major contributor to the acquisition of game NFTs. Axie Infinity rightly comes to mind here where players can nurture axis and sell them in the NFT marketplace.
Since the success of Axie Infinity, several blockchain games have emerged on the Play-to-Earn model. Some of the most notable NFT games include Splinterlands, Crypto Kitties, Sandbox, and many more.
Simply acquire your assets, build them, and sell them at a higher price on an NFT marketplace.
Aside from currencies, music is one universal item that has always been fungible, easily duplicated, and replicated on all kinds of devices. However, this story has changed since the advent of NFTs. It is now possible for musical artists to create NFTs out of their works, making them unique and commanding high value.
Some of the artists that have gone this route include Justin Blau (who sold his Ultraviolet album as an NFT for $11.7m), Grimes (who sold the War Nymph collection vol.1 for $5.8m), Steve Aoki (Dream Catcher at $4.25m), among others.
Sporting events are known to draw interest among passionate supporters at all times, and usually, star players always live to the expectations of big moments. Sports NFTs are relatively new when compared to other types of NFTs, however, their prominence has been sustained by the documentation of special sporting moments contained in short video clips.
When you think of virtual lands, it is possible that Decentraland is the first thing that comes to mind. There has been keen interest in virtual lands recently and this is due to the emergence of the metaverse. As the metaverse continues to grow, the value of virtual lands upon which brands will build their metaverse presence will also grow. The bright side is that these virtual lands are built on the blockchain and they are NFTs.
Virtual lands have also become popular in games. In-game virtual lands usually hold extra values such as representing strategic locations and containing huge resource deposits. Thus, collecting them could hold more value over time.
The lifespan of NFTs has also expanded beyond the digital, it is now possible to own NFTs that represent physical items. This is especially true in the real estate and art industry. Here, NFTs can be issued as digital proof of ownership of physical assets with the detail of such ownership contained in the metadata of the digital NFT version.
The major benefit of this kind of NFT is that it helps create liquidity for assets that are otherwise considered to be illiquid. The digital versions of physical assets can be further fractionalized into Fractional-NFTs which will further make them affordable to many investors who could purchase pieces of the whole and easily transfer ownership when they deem it right.
If you think that digital arts are hilarious, then you will find this even funny. Memes have moved past the comical JPEGs they once were, they can now be bought and sold for millions of dollars in the form of NFTs. So, if you are a fan of memes, you can consider becoming a meme NFT collector.
Some of the most notable meme NFT sales you will find around include the Doge meme (which sold for $4 million), NyanCat, and Disaster Girl.
This is a relatively new entry into the world of NFT. Top fashion brands like Gucci, Nike, Adidas, and Balenciaga have started making their appearances in the virtual world, selling virtual goods to users.
Virtual fashion is expected to grow considerably over the next decade as there will be an increased demand for fashion products such as avatar skins, footwear, sunglasses, and more. These NFTs are what will distinguish metaverse avatars from others and the demand will only increase with the adoption of the virtual world.
NFT domains are still emerging and are yet to see wide adoption, but it is expected to be the norm in the coming years. Simply put, NFT domains work similarly to the usual web-based domain names. However, NFT domains are minted on the blockchain and sold in NFT marketplaces. They are fully decentralized and do not require owners to register with any domain name service provider to keep them active.
The “.eth” domain names have seen the most adoption since the advent of blockchain domains. The only drawback as of now is that NFT domains cannot yet work on regular browsers but this is expected to change soon.
All NFTs have their foundation on the blockchain are they represent unique, rare assets, however, if you truly want to stand out as a collector, knowing the different types of non-fungible tokens that exist will be key to helping you make quality decisions about the value and importance of these digital arts. This piece is your ultimate guide to getting started.