Non-fungible tokens (NFTs) are all the rage. Not only do they enable the efficient commercialisation of unique assets, but they also represent the creation of entirely new digital product lines and revenue streams.
If you’re wondering why NFTs have been in the spotlight, you need look no further than their wide range of use cases, whether that be through collectables, gaming, art or virtual tokens. They’ve become one of the most vibrant sectors within the cryptocurrency space, with countless amounts of NFT projects launching every day.
Non fungible tokens are unique tokenised representations of digital files whose ownership can be demonstrated and verified using distributed ledger technology (DLT). Exchanged on public blockchains, NFTs are gaining traction due to businesses tokenising such things as music albums, artwork, internet memes, gaming and esports. They have unlocked new opportunities for digital commerce and engagement.
How digital art made NFTs a mainstream phenomenon
The traceable nature of NFTs enables digital art objects to have verifiable scarcity and original ownership, thus creating new opportunities for digital artists.
Launched in 2017, CryptoPunks is the earliest NFT project in existence. Since then, the market has grown. In the first quarter of 2021, there was $1.5bn in NFT transaction volume, up 2,627% on the last quarter, according to the report by DappRadar.
Each NFT is tied to some unique data and governed by a smart contract, while the process of converting a media file into an NFT is referred to as minting. Some NFTs offer the ability to fractionalise ownership of an underlying asset, which means splitting ownership – each purchaser’s potential benefit is dependent on the proportion they own.
NFTs that incorporate smart contracts specify and automate certain rights and obligations for buyers and sellers. For example, there could be a stipulation stating that the NFT creator receives a percentage of the transaction proceeds every time the NFT is sold on. All in all, NFTs have the potential to facilitate new revenue streams by acting as channels for businesses and digital creators to reach a variety of different audiences.
Before we delve into the list of the most watched NFTs in 2021, as collated by Bacany Technology, it’s worth noting that, as the name suggests, NFTs are characterised by their non-fungible nature. While fungible items are interchangeable and can be traded or exchanged for one another, NFTs are unique cryptographic tokens that cannot be replicated, making them radically different from the former.
Axie Infinity
Axie Infinity topped the list as the most famous NFT in 2021 on Google. The trading and battling game allows players to collect, breed and raise creatures known as axis. It received 706,000 searches a month.
According to Token Terminal, Axie Infinity’s total revenue in the last 30 days is up 7.83% at $191m, while its annualised total revenue is $2.43bn. Earlier this year, the play-to-earn platform surpassed one million daily active users, showing how Axie Infinity remains at the forefront of the intersection between crypto and gaming.
Since its launch in 2018, the platform has experienced a surge in players seeking to participate in its play-to-earn model. The blockchain-based metaverse project was only launched a few years ago, but currently has a market capitalisation of $7.9bn (18 November 2021).
However, rapid growth for Axie Infinity came to a halt in September this year when revenue dropped by 40% from August, according to data from Token Terminal. This was the first month-over-month decline for the company since January 2021.
NBA Top Shot
Among the most-searched NFTs on Google is NBA Top Shot, which came in second place this year. NBA Top Shot received an average of 396,000 NFT-related searches a month.
NBA Top Shot is a joint digital collectibles venture between the US National Basketball Association (NBA) and Dapper Labs. It provides users with the opportunity to purchase, collect and showcase digital blockchain collectibles containing exclusive content from the NBA and its current and former players. The Dapper Labs system, which boasts an array of cutting-edge features, works by treating NFTs like original trading cards. Each Top Shot moment can be described as a cross between a trading card and a video clip.
The NBA licenses the reels to Dapper Labs, which digitises the footage, making a limited amount to create scarcity. Overall, NBA Top Shot engages a niche consumer base that drives blockchain adoption by lowering barriers to entry, regardless of users’ familiarity with cryptocurrencies and blockchain technology.
At the start of this year, a moment of LeBron James dunking on Sacramento Kings’ Nemanja Bjelica sold for an astonishing $208,000. NBA Top Shot has generated more than $700m in sales, as of 18 November 2021, according to data from CryptoSlam.
????ALL HAIL THE KING????@YoDough scooped up this Legendary LeBron James Moment from our Cosmic Series 1 set for $208,000‼️ This Moment is from our first Legendary set ever minted ????
The top acquisition for any NBA Top Shot Moment … so far.
Congrats on the nice pickup! ???? pic.twitter.com/rFLMzbwXN7
— NBA Top Shot (@nbatopshot) February 22, 2021
CryptoPunks
In third place is CryptoPunks, the earliest NFT project launched in 2017 by Matt Hall and John Watkinson, with 42,000 searches a month.
As one of the most popular NFT platforms, CryptoPunks offer a collection of 10,000 unique 24×24, 8-bit style pixel art collectible characters that each display their own personality and combination of distinctive, randomly generated features.
There are 6,039 male Punks and 3,840 female Punks. A total of 696 wear hot lipstick, 303 have mutton chops and 286 Punks wear 3D glasses. There are also eight Punks with no distinctive features at all (sometimes referred to as Genesis Punks) and only one with seven attributes: CryptoPunk 8348.
Official ownership of each CryptoPunk is outlined in code on the publicly accessible Ethereum blockchain, while the ownership history of every artwork is also tracked and documented on the blockchain too.
Sales in CryptoPunks were especially high in August this year, generating sales of $143m on 28 August 2021. The most expensive CryptoPunk was bought on 11 March 2021 for 4,200 ETH ($7.57m). Overall, CryptoPunks have generated more than $1.6bn in sales, as of 18 November 2021 according to data from CryptoSlam.
Art Blocks
Just behind CryptoPunks in the list of top trending NFTs is Art Blocks, a storefront for programmable on-demand generative content that’s stored immutably on the Ethereum blockchain. The world’s first platform dedicated to decentralised generative art is Googled an average 10,000 times a month.
Art Blocks works by allowing buyers to pick an art style that they like. They then receive an algorithmically generated version of that content to their Ethereum account. The resulting piece might be a static image, 3D model or an interactive experience, but each output is distinctly different. The founders claim that there are endless possibilities for the types of content that can be created on the platform.
The company’s intention is to create a collection of works that best represent the vision of the Art Blocks platform, which are then released on a schedule, allowing collectors to manageably build a significant set of generative works. The maximum number of full curated sets to exist is tied to the edition size of the smallest drop in that set.
Art Blocks has been thriving lately. The first-of-its-kind platform has a seven day trading volume of $1.06m, as of 18 November 2021, according to data from NFT Stats.
Bored Ape Yacht Club
In last place is Bored Ape Yacht Club, a collection of 10,000 NFTs styled as Apes and stored as ERC-721 tokens on the Ethereum blockchain. It received around 3,900 Google searches a month.
Each Bored Ape is unique and programmatically generated from over 170 possible traits, including expression, headwear and clothing. Perks can be unlocked by the community through roadmap activation.
In September this year, the auction house Sotheby’s sold a bundle of 101 NFTs from the Bored Ape Yacht Club for roughly $24.4m, implying an average price of $241,515 an ape. Overall, Bored Ape Yacht Club has generated more than $750m in sales, as of 18 November 2021, according to data from CryptoSlam.
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