Non-fungible tokens are distinct in their own right, and they are available in a variety of sizes and shapes. The most well-known NFT use is digital art, but the ecosystem is also seeing rapid growth in blockchain games and metaverse land. Brands are embracing the trend by partnering with creators of avatar customization tools or opening up shops in virtual worlds. On the blockchain, non-fungible tokens (NFTs) are non-expendable tokens. Because each NFT is intended to be unique, unlike Bitcoin, Ethereum, and other cryptocurrencies, one cannot simply be traded for another. Despite their uniqueness, they may essentially be divided into various categories.
- Digital Artwork NFTs
The majority of NFT stories began as digital art in NFT form. It’s one of the most well-liked varieties of NFTs available right now. NFTs of digital art can be anything, including paintings, drawings, and photographs.
- Music NFTs
Music is another example of NFTs. Artists are adopting NFTs to release music straight to the listeners because they are sick of music piracy and middlemen. DJ Steve Aoki claims that in 2021, he earned more money with his NFT than he had in ten years of recording songs. Even Indian bands have caught on to the idea, with Euphoria planning to release their upcoming album as an NFT.
- Video clips and GIFs NFTs
The motion version of these paintings and drawings can be converted into video clips and GIF NFTs if digital artwork NFTs are single images. These NFTs may also include noteworthy film sequences, sports highlights, or behind-the-scenes videos. LeBron James’ Kobe Bryant Tribute Dunk, a 22-second clip that sold for about $400,000 in February of last year.
- Memes NFTs
Memes are definitely a piece of art, but they’re also not always moving pictures, which is why they have their own category. For instance, the Doge meme sold in June 2021 for a whopping $4 million. Other memes that will be offered for sale as NFTs include Charlie Bit My Finger, Disaster Girl, and Bad Luck Brian.
- Avatars or PFPs NFTs
NFTs used as online avatars or profile image collections like CryptoPunks, Bored Apes, and Lazy Lions fall under this category. Lots of different avatars can be found in one library, and each character’s uniqueness is defined by its characteristics.
- Video Game NFTs
Players can purchase, gather, and exchange NFTs in blockchain video games. Characters, designers, virtual weaponry, skins, or even in-game items can be among them. One of the most well-liked games NFTs in 2021 included the Pokemon-like Axies from the game Axie Infinity.
- Trading Card NFTs
The use of trading cards is not particularly novel. They are actually the digital equivalent of classic collector cards. Players can also store them as a collector or exchange them with other players, just like traditional collectible cards. Trading card NFTs include the Sorare and God’s Unchained cards.
- Metaverse Land NFTs
Although there are doubts over whether selling metaverse land at auction is the most sustainable NFT strategy, companies like Decentraland and The Sandbox have succeeded in building their brands in the market. Users can communicate with the digital ecology using metaverses. They have the option to purchase, sell, trade, or own virtual property within that ecosystem.