NFT stands for “non-fungible token”, which means that each token of this type is unique. One NFT cannot be replaced by another, and that is what makes it different. The “non-fungible tokens” could become the basis for relationships between creators and buyers.
SNF are used to tokenize digital assets in order to monetize them. This involves creating a digital certificate of ownership that will correspond to a virtual object, which can then be sold or purchased freely. It is important to remember that other people may also have copies of an object but only one person may have the specific token that can prove ownership.
Considering the unique features, demand for SNF will depend little on the cryptocurrency market but much on the demand for virtual creations.
Now the NFTs are constantly expanding and I think they will conquer many industries like music and paintings but it is worth remembering that they got their first recognition in the gaming field, especially thanks to the blockchain game CryptoKitties.
The demand that has stimulated the growth of this market, came from the metaverse, the fusion of the physical, virtual and VR worlds. Consider that at the beginning of 2020 alone, the market value of non-fungible tokens was $141 million, until reaching a capitalization of $337 million by the end of the year.
And according to CoinGecko, the market capitalization in March 2021 reached $8 billion, and this is clear evidence of rapidly growing demand. Suffice it to think that in March 2021, the artwork “Everydays: The First 5,000 Days” by artist Beeple is sold for 69 million dollars.
However, one has to consider the fact that the NFT technology has not yet received sufficient coverage. That’s why it’s too early to talk about the likely impact it could have on the world. In addition, the impact of IoT (Internet of Things) should be considered for the future, which could become an additional source of demand.