What's Going on With NFTs!


So, its been almost a full year since NFTs took off with BAYC taking the world by storm. Bored Ape Yacht Club or BAYC has become the most notable NFT in terms of global exposure. BAYC for all of you that do not know is a NFT collection comprised of 10,000 uniquely generated apes. Each ape has a relative rarity score within the collection with BAYC #7495 earning the number 1 spot on rarity score. This is due to it having the rarest attribute the "Bored Dagger," with the attribute availability of 0.49 percent. With the dramatic rise of BAYC from their mint to mid-august of 2021, NFTs have skyrocketed into the upper echelon of pop culture and have intertwined themselves into business. This has not increased the values of NFTs but has shifted the culture and design around NFTs. Now, NFTs are required to provide utility and value; NFT creators are held accountable for their brands that they form. Before, I get ahead myself, let's look at the growth of NFTs. 

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This graph highlights the dramatic rise of NFTs and the rapid daily movement that has been experienced in the NFT market. This high daily volume has rivaled daily US car sales. But as the saying goes "everything that goes up, must come down." The extent of that fall is what NFT collectors are currently contemplating. This is come at a time in which NFTs have shifted from just JPEGs to a medium for utility. For example, Diplo and Nas have both joined Royal to release tokenized royalty NFTs. Diplo released his new single "Don't Forget My Love" as a "Limited Digital Asset" (LDA) or simply a Polygon-based NFT connected to his newly released Single. In purchasing the LDA you are guaranteed royalty rights to the song at different levels stated in the LDA prior to purchasing. These LDAs are just as limited as NFTs but yield direct utility in terms of royalties. This is direction most NFTs are heading from Alien Frens to unreleased NFTs such as Crypto Hollowz all NFTs are shifting to provide utility. 

Lyrical Lemonade which is a style in the rap and hip-hop scene has now shifted focus away from it's notable summer festival to push it's new NFTs. This comes with a collaboration with Alien Frens, who has previously collaborated with Nelk, and there own NFT drop: https://www.l3monworldwide.com/ 

Lyrical Lemonade NFT offers utility in terms of exclusive Lyrical Lemonade drop priority (NFT and clothing) as well as 3 years of free tickets to their famous Summer Smash music festival.

Tons of companies are moving into the Web3 space through NFTs or through cryptocurrencies from Adidas to Lyrical Lemonade the shift is happening. Yet can people justify the purchase of thousands of dollars worth of JPEGs for minimal utility. This begs a huge question for many NFT investors. 

 

Conclusion:

My belief is NFTs like the cryptocurrency market thins out. The low utility NFTs disappear as well as many teams are going to have rethink about how to move forward. It will not just come to utility but a strong core team, collaborations, art, and community. I think BAYC is not going anywhere nor are Crypto Punks, however, I think consumer will be very particular and careful when making new purchases. 

 

Happy trading!

@Hypothetical 

 

 

Also if you have time to check out @cryptohollowz on Twitter it's a new project I am working on and yes we are taking all of this in account.  

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