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Over the last two years, nonfungible tokens (NFTs) have emerged as one of the most active and noticeable aspects of Web3.<\/p>\n
The data stored on blockchains by NFTs may be connected with files that include various forms of media, such as photographs, videos and audio. In certain instances, it can even be related to physical items. The owner of an NFT will often have ownership rights over the data, material or item connected with the token, and these tokens are typically purchased and traded on specialized markets. The rise of NFTs was meteoric in 2021, but it hasn\u2019t been very steady since then, and it seems to have fallen sharply in 2022.\u00a0<\/p>\n
In 2021, two of the most active markets for NFTs were collectible art projects and the video game industry. NFTs have ushered in a new era of video gaming, which has resulted in the proliferation of new types of games, such as blockchain-based play-to-earn games that provide players with in-game benefits. Users now have the opportunity to own in-game assets for the first time and make a possible profit from such assets by trading them on NFT platforms like OpenSea.<\/p>\n
Axie Infinity, a game that included both NFTs and its own native cryptocurrency, became the most popular crypto game overall. Axie\u2019s NFT market reached a milestone of $1 billion in total trading volume. In addition, the game accounted for two-thirds of blockchain-game NFT transactions in 2021, according to a report covered by Cointelegraph in March this year.<\/p>\n
The gaming industry can help to bring NFTs into the mainstream due to their massive popularity. Pavel Bains, executive producer of Mixmob \u2014 a card strategy racing game \u2014 told Cointelegraph: <\/p>\n
\u201cNFTs within crypto gaming are a massive tool, probably one of the top three driving forces in crypto mainstream adoption. Right now, the biggest roadblock we\u2019re facing is that the games aren\u2019t very fun to play. Some will say, \u2018Oh, the onboarding experience is bad… Using a crypto wallet isn\u2019t ideal. You need to abstract it away.\u2019 I don\u2019t believe that. Kids will go through pain to get what they want if it\u2019s fun.\u201d <\/p>\n
Fear of missing out also seemed to play a major role, with the massive success of picture-for-proof collections like the Bored Ape Yacht Club (BAYC) soaring from a mint price of $300 to up to $3.4 million for a rare golden ape.<\/p>\n
No matter what it is, there are usually two types of adopters: those who see the potential in a trend and are willing to stick with it and those who join in because everyone else is doing it. NFTs are no different.<\/p>\n
NFT sales stayed fairly strong in the first half of 2022, with crypto users spending $2.7 billion on minting NFTs during that period. However, despite a strong start to the year, there have been some negatives within the NFT space.<\/p>\n
Earlier this year, the floor prices for BAYC dropped below $100,000, only to recover, with the cheapest Bored Ape recently selling for 73 Ether (ETH) ($125,000) on OpenSea. <\/p>\n
Recent:\u00a0Music NFTs a powerful tool to transform an audience into a community<\/em><\/strong><\/p>\n This year also saw users losing their Bored Apes due to user error. \u201cFat finger\u201d errors have led to Bored Apes worth hundreds of thousands being sold for far less. For example, Ape #835 sold for 115 Dai on March 28 this year, with Ape #6462 selling for 200 USD Coin (USDC) on May 15.<\/p>\n Ape #6462 was purchased for 200.0 USDC \n
https:\/\/t.co\/u3lQymdO1B<\/p>\n