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In the world of digital consumerism, NFTs have had a significant impact on the consumer market and will do so for years to come.The big brands we all know and love — It’s no surprise that Nike, Adidas, and Under Armour have jumped headfirst into digital goods.The explosive growth of NFT in the past two years is unimaginable. At the end of last year, the market size exceeded 41 billion US dollars, and it is expected to exceed $80 billion by 2025.
Take this specific example: In December, Nike acquired virtual sneaker designer RTFKT to solidify its position in the virtual world. Now, that purchase is responsible for driving a huge dividend. In April 2022, RTFKT and Nike dropped the Nike Dunk Genesis Cryptokicks, a collection of 20,000 NFT sneakers.People have been buying virtual sneakers since they launched Between $7,500 and $9,000.
Whether you believe in the future of the metaverse or still aren’t sure what it all means, you have to accept the fact that brands of all types and sizes are betting on its future. The minting of NFTs has resulted in considerable revenue growth for NFT “innovators”, and the success of these initiatives is proving to be driving the trend to build more and thus earn more.
NFTs are unique because the potential revenue for creators and brands is continuous, while maintaining a consistent connection with consumers. Because of this, we as a community must change our minds. NFTs are not one-time, one-click purchases or benefits. It’s so much more than that, and it’s growing more than we can imagine.
Related: What You Can Know About NFTs From Coca-Cola, Acura, and Gucci
The first NFT sale focused on the initial price and the idea of collectors owning the NFT. While the process was exciting for the brand, the original price quickly fell back as excitement over the original investment waned. This result suggests that the original buyers and their communities did not have enough investment to sustain the project.
So where will NFTs go? Once NFTs are minted, creators and brands are quick to ask similar questions: what’s next? This is a good question and one that becomes easier to answer as the market evolves. Today, value beyond NFTs must be considered, taking into account the strength and sentiment of the community and the perceived ongoing benefits and utility.
So the question becomes, how can we continue to unite those who are excited about NFTs? From a branding perspective, there is still a lot to explore, but we know this: NFTs can enable rewards and loyalty benefits and add value long after collectors have taken ownership. NFTs can continuously build brand equity, provide incentives through the community, and facilitate product launches or events. It can be used to show customer appreciation or provide incentives for top selling producers. Some use cases for NFTs have yet to be imagined. It’s similar to when consumers start adopting cloud-based technologies; it’s only after they’ve used these services that they see the benefits and dream about what’s possible in the future.
Related: 3 compelling NFT projects your company can learn from
The idea of adding more “utility” to NFTs came directly from the collectors. Utility refers to the benefit or benefit of owning an NFT that can increase over time. Utility also adds to the idea that NFTs can be worth a higher price, as long-term perceived value is more important to collectors.
Another utility promotes philanthropy. Nonprofits such as The Giving Block believe 30% of their donations come from NFT donations And is working with major NFT platforms to simplify cryptocurrency donations by integrating this concept into their core products. In addition to this, many for-profit organizations and artists have donated their resources, such as NFT design or NFT minting proceeds, to make a positive impact. Whether reducing climate change, supporting SPCA adoption, or reducing homelessness, NFTs offer new ways for brands to give back. There is a warm and fuzzy NFT feel after all.
The other side of the NFT story must be considered: content creators and influencers who partner with brands and help revolutionize the metaverse. NFTs are a potential revenue stream for creators and offer something collaborations or brand partners haven’t offered before – a new and unique way to generate revenue and facilitate collaboration.
The opportunities that NFTs can and are rapidly expanding. This is just the beginning of this story.from Death Row: Vol. 2 and Boring Ape Yacht Club to hijacking and in louis gamedigital collectibles will only continue to expand, possibly to more places than we can imagine.
Where are we going from here? The sky is not the limit; our collective minds and ideas and technology will drive the next evolution of NFTs. What is being determined now is what value they will bring in the real world (wait, isn’t the metaverse the real world?). Let’s face it: NFTs represent the future, and brands have a unique opportunity to find new ways to engage consumers. The future is bright – let’s drive new levels of success far into the future.