Some experts are of the opinion that the Non-fungible tokens are sustaining the cryptocurrency markets. The crypto winter has persisted and bitcoin seems stable at $23,000 so far.
This stability has been attributed by some experts to the eventfulness of the NFTs scene. With the cryptocurrency and blockchain markets having matured reasonably, attention is now being placed on NFTs. Not just NFTs but also the more encompassing Metaverse. NFTs are becoming a very significant part of the web3. The Metaverse’s popularity is also increasing for both customers and companies.
Often, it has been presumed that NFTs are the building blocks on which the Metaverse can run. Furthermore, the UAE have taken the forefront in adopting tech that are significant in these fields.
The amount of people in the UAE owning NFTs is double the worldwide average. It is also interesting to know that the country is on its way to becoming a major player in the Metaverse.
However, members of the public are wondering where we are headed with all the jazz on NFTs and the Metaverse.
A Surge In NFTs?
NFT transaction volumes, users and active collections all soared through 2021. The term “NFTs” earned the converted title as Collins Dictionary’s ‘word of the year.’ This momentum continues as the Chainalysis State of Web3 report finding that collectors sent over $37 billion to NFT marketplace. This happened between January to May this year. This indicates that they are on track to outdo their 2021 total of $40 billion.
There are generally peaks and troughs in NFT activity. This is due to marketplaces undergoing periods of growth, downturns and recoveries, caused by global trends and levels of user demand.
Even after taking all of these into account, there is no doubt a rise in the number of active NFT buyers and sellers. With an increase every quarter, there is no doubt that there has been serious NFTs activities. There’s been a steady growth, too, in the number of active NFT collections on OpenSea since March 2021, with over 4,000 reached in late April 2022.
NFTs And The Metaverse
With NFTs, people can own digital assets like images, audio, and video, and can sell, buy, and transfer items. Within the Metaverse, it’s even possible to own virtual real estate. Many brands, gamers and individuals are already treating the Metaverse as a lived reality. A reality which reflected in the price for virtual real estate.
Blockchain-based virtual real estate prices grew by 879% from September 2019 to March 2022, while real estate prices grew by 39%.
The collection of 2,003 limited-edition collectables includes Etihad’s Manchester City FC offers a number of travel-lifestyle benefits. And Dubai’s stunning Museum of the Future is collaborating with Binance NFT to develop a range of virtual assets. The first NFT drop is in the coming weeks, according to reports.
The Metaverse is an emerging space, so the long-term price of virtual real estate relies on current and potential utilities. Utilities related to accessing exclusive communities and events. So far, this has been a major driver of NFT demand, and the current signs are that it’s crossing into actual virtual domain.
The future of the Metaverse largely depend on how well the entire system can work together. It is not known yet how if brands will create their Metaverses in a way that is peculiar to them. In a way the Metaverses can operate seamlessly with current Metaverse projects and blockchain technologies. However, there are some early signs that this will eventually become the case.