Increased adoption of Metaverse NFTs will fuel the next NFT growth cycle

Metaverse and non-fungible blue-chip tokens (NFTs) are the driving forces behind the dramatic growth of the NFT market. Projects such as the Bored Apes, Crypto Punks, Azuki, Clone X and Doodles collections have steadily piqued the interest of collectors over the past year. As a result, these NFT projects have helped the NFT market reach a growth rate of over 20,000% and a sales volume of approximately US$17 billion.

For an industry that once garnered just a tiny speck of attention in the crypto/blockchain world, it’s clear that NFTs are here to stay, despite previous criticism of their short-lived nature. However, with the recent lull in the NFT markets, investors and collectors alike are now looking for new frontiers where they can benefit from the innovative application of NFT technology in various use cases.

On the other hand, innovators have found creative new ways to apply NFTs in different industries. These new applications have increased the usefulness of NFTs and I expect they will drive the next phase of NFT adoption.

The NFT Marketplace

A particular sub-niche that is attracting increasing interest in the NFT world is metaverse NFTs. A report published by NonFungible.com, prepared in partnership with L’Atelier BNP Paribas, indicates that Metaverse NFTs account for approximately 3% of the global NFT market value, which is a staggering $513 million.

As more companies build their brands within the Metaverse, the value of Metaverse NFTs will grow exponentially. Here are some areas that will benefit from increased adoption of Metaverse NFT.

Related: ​​NFTs, Web3 and the Metaverse are changing the way scientists do research

Virtual real estate: Margaret Mitchell once said, “Land is the only thing in the world that matters, because it’s the only thing in this world that lasts, it’s the only thing worth working for, it’s worth working for.” worth fighting for – worth dying for.” Thanks to blockchain, digital land can evoke the same emotions and utility as physical land.

For example, PARSIQ, a blockchain company, has created a platform for landowners in the Metaverse to earn rental income from their digital assets. The protocol mimics the behavior of physical land by ensuring that the obligations of both the landowner and tenant are negotiated, governed and enforced through a series of smart contracts.

Related: The Metaverse is booming and bringing a revolution to the real estate industry

Virtual events: A few months ago, Snoop Dogg, the famous West Coast rapper, announced that he would be hosting an exclusive concert at The Sandbox’s Metaverse. The event leveraged NFTs to grant concert-goers access to premium experiences inside and outside the metaverse.

Subsequently, several brands began investigating how they could use advanced technologies to redefine the boundaries of virtual worlds across multiple platforms.

Companies believe that by creating events that integrate music, art and fashion in a corporate or conference setting, they can offer their fans unique experiences that will keep them in their ecosystem longer and extend their customers’ lifetime value.

Related: Concerts at the Metaverse could lead to a new wave of adoptions

Financial Services: According to Trading Economics, the annual inflation rate in the United States rose to 8.5% in March 2022, the highest inflation rate since 1981.

As investors feel the pressure from all sides, there is a growing appetite for assets that can generate returns above inflation. Protocols offering decentralized financial services operated by NFTs within the Metaverse offer investors a way to earn passive returns and other incentives.

Staking and yield farming are already popular ways to earn passive income in the DeFi space, but they’re relatively new to the metaverse. However, as they find widespread adoption, they present tremendous opportunities for early supporters of Metaverse projects to generate life-changing income.

It’s an exciting time to explore these new use cases while the market is in a doldrums. Once market exuberance returns, the early adopter will have extracted the alpha and will most likely move on to the next untapped frontier.

This article does not contain any investment advice or recommendation. Every investment and trading move involves risk, readers should do their own research when making a decision.

The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.