Here’s How the NFT Ecosystem Has Started to Grow

Suffice it to say that the world is changing a lot more rapidly than it used to, and one of the biggest examples of that can be seen in the rise of NFTs and the like. NFTs are non-fungible tokens, and they are essentially digital representations of a piece of art or some other type of entity that exists on the blockchain. That provides a lot of opportunities for a wide range of people, and digital art is an area that is seeing an especially large boom thanks to NFTs becoming increasingly commonplace.

Digital art is valuable in and of itself, but in the case of NFTs digital art is becoming a bit of a status symbol as well. Plenty of influencers and online personalities are starting to use NFTs as their profile pictures on their various social media accounts because of the fact that this is the sort of thing that could potentially end up making them seem a lot more prestigious. NFTs are highly valuable, and if your profile picture contains one that means that you are displaying a truly unique work of art that no one else would be able to copy.

In a day and age where everything can be copied and reproduced with ease, originality has become highly valuable since it has previously been more or less impossible to attain. Uniqueness is what gives NFTs their value for the most part. That might be why so many social media platforms are starting to integrate themselves into the overall NFT ecosystem and are contributing to the growth and evolution of this ecosystem as well with all things having been considered and taken into account.

With all of that having been said and now out of the way, it is important to note that Ethereum is the most popular blockchain for NFTs right now. That might be due to the reason that it is the most famous blockchain that is capable of sustaining NFTs in the first place, with the market cap of all the NFTs on the Ethereum blockchain having passed half a trillion dollars earlier this year. By contrast, the next biggest NFT blockchain is Solana which has a relatively small market cap of just under $64 billion, and that’s still a lot more than what most other blockchains are able to manage.

A lot of the NFT art that is being used as social media profile pictures is actually quite minimalistic. A huge representation of this is the Cryptopunks series which shows vaguely human-like figures that are made up of 10,000 pixels each. While each Cryptopunk is unique to some extent or another, they all have certain attributes associated with them. Cryptopunks with the buckteeth attribute are among the most popular without a shadow of a doubt, and some NFTs in that series are worth hundreds of thousands of dollars at minimum with others being valued in excess of a million dollars as well.

Whether or not NFTs are actually valuable is a different matter entirely. While they don’t serve an actual purpose as of yet, generally speaking the thing that gives things value in the first place is what people are willing to pay for them. People are paying small fortunes for these NFTs so that they can establish their own identity online, and with the rise of the metaverse and as people start to exist more and more in a digital space these NFTs are only going to keep getting more valuable as time goes by.


Infographic H/T: Visualcapitalist.

Read next: What Are NFTs and Why is Everyone Talking About Them?
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