Exploring NFTs: Why It Will Be a Multi-Billion Industry in 2022

NFT trading using the blockchain has exploded since the digital asset went mainstream within the decade. The assets are gradually moving to new highs, with predictions rife that transactions will double in 2022 to command billions. 

One of the least talked about, yet lucrative trades, is NFTs for sports media. The area has seen exponential growth because sports personalities complement the assets themselves. Soon enough, sports NFTs might hit $2 billion in valuation. Colossal figures, of the sort, inspire those learning how to start forex trading in PrimeXBT and other platforms to give more room for NFTs and other assets. 

On the internet, many figures are going around involving NFT that sound impressive, drawing multitudes looking to make a kill. The numbers are the genesis of questions by nonprofessionals in the digital asset segment to understand how they can own NFTs.

Why Are NFTs Lucrative?

NFTs are simple images or digital formulations encrypted using special keys exchanged over the blockchain, mostly for profits. 

First, NFTs are lucrative because they provide unlimited options for their keepers, who can exchange them for money, customize them into other products or use them to store other more important information. 

Ethereum network is the major blockchain fueling NFT transactions, it is immutable and provides a one-on-one communication route with the buyer, meaning no third parties can snoop or steal data. Other blockchains offer NFT transactions. Many of them use their native tokens to make the transfers possible. For the Ethereum network, it is ETH, which is also tradable in PrimeXBT. 

NFT creators are also in-line for royalties, should their creations pass from one hand to the other. The information containing the details of a creator is stored in a smart contract, which also secures the overall transaction in the blockchain as the asset moves. 

Rarity and the fact that the medium for exchanging NFTs is unbreakable is a reason why they are in demand and lucrative. 

Sandbox, Defi kingdoms, and Treeverse are some games offering NFT rewards in gameplay. Usually, players exchange their game winnings, progress, or avatars to NFTs for cash or other NFTs. The minted NFT in games can go to the biggest NFT marketplaces for selling purposes, meaning that future applications might have a provision to allow creators and players to benefit from NFT sales.

The metaverse might also use NFTs as currency alongside crypto; projects moving in that direction are looking to implement a similar roadmap taken by NFT based games, which is to have users mine land or take part in social discussions. 

Many games already are implanting a metaverse; a common feature in many of them is that NFTs and cryptocurrency will fuel transactions. 

The exciting potential of NFT, alongside cryptocurrency, is what makes them lucrative now. Some people think they will play a significant role in the future. When the future is here, the stored NFT will be worth many more billions of dollars. 

Factors Influencing NFT Prices

NFTs rely on speculation and rarity to have a chance of a higher value in the future. Creators often move in the direction of innovation, meaning they create assets without knowing their true worth. However, demand and base points set by similar NFTs present ideas to set the initial price. 

Market sentiments, including media highlights, drive up the value of NFTs, and those keeping them can sell them at a higher price. 

The idea behind NFT is ‌traditional; it follows traditional artwork sales. The painter is blind and does not know the real value of their work, but perceived buyers come with offers. Some buyers in the market may agree to a similar price threshold for the painting, while others go higher to beat the multitude in the bidding price war.  

Where to buy NFTs

NFTs are digital assets, so the place to look for them is on the internet. NFT marketplaces like OpenSea, Rarible, Binance NFT, and more, are points where sellers meet buyers. Big NFT artists usually reside in the largest marketplaces. In the future, PrimeXBT might increase its assets to involve more NFTs, traders should watch the space.

Conclusion

NFTs are growing fast; many projections put them at double digits in transactions between 2022 and 2023. Digital assets hold value because of demand. NFTs have inspired the metaverse and the gaming industry of the future, meaning they have significance in future society.