With a total trading volume of $12 billion in the first quarter of 2022, the NFT hype is undoubtedly big. However, in order to be sustainable, it’s going to require more than apes, kitties and FOMO.
While it is still early days as far as discovering real-world use cases for NFTs, they do hold a lot of power beyond JPEGs on the blockchain. Utility NFTs might just be the driving force necessary to transform them into a new and radical way of working, interacting, playing and even doing transactions online.
Big name players like Bored Ape Yacht Club have already moved into the utility space by granting their NFT holders to exclusive parties and rewards. Another famous example is World of Women, which is an NFT project which seeks to support and educate women in web3 and NFT.
Let’s take a closer look at how NFTs can make an impact across various industries.
Gaming - the applications of NFT blend effortlessly within this domain, as play-to- earn games provide an already booming industry with further incentives, enabling ownership over in-game assets and collectibles. A famous example? Axie Infinity of course!
Virtual Real Estate - by now, a large amount of people have head of Sandbox and Decentraland where the concept of virtual real estate is in full swing. This is a great use case example of NFT utility concepts being put into practice, as big name corporations such as Gucci and Nike have invested not only just in land, but also in advertising spaces and experiences for audiences to interact with them.
Fashion - NFT utility tokens are also expected to drive change in the fashion industry, with virtual fashion shows conducted alongside exclusive shopping experiences. Virtual fashion for avatars is only just one aspect of how NFTs can be used in this sector. Take a look at Fabricant as one impressive player in the space, with several high profile partnerships and events already having taken place in Decentraland and beyond.
Finance and banking - NFTs can be used as identifiers, similar to what is created when you open a bank account in the real world. The NFT, once connected to your digital wallet, serves to identify all of your transactions on the blockchain, as well as give you access to an avatar and account number representing your “online, web3 bank account.” Currently, the only player making this concept a reality is Fiat24, a Swiss based company who offers people cash accounts on the Ethereum blockchain.
The bottom line
The development of utility NFTs is still in its’ nascent stages and would take a lot of time until it truly becomes a force of change. Having said that, the examples outlined in this article reveal that there is some early adoption of utility tokens across a very diverse set of sectors, and are proof that NFTs are more than just visual art and collectibles.
The prospects for utility will certainly become more and more prominent in the future, as utility non-fungible tokens discover multiple use cases.
Author
Karen Shidlo
Karen Shidlo went to college in NYC, and has lived in Switzerland for the past 6 years. Currently marketing manager at Fiat24, she is passionate about blockchain technology and the impact that it can have on the world.
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2022-07-26 09:17:45
