What does a good NFT do in 2022?
NFT technology has opened us up to a new frontier that the world has not seen before, but what does a good NFT do? The NFT space in 2022 is very different from the collector hype in 2021, there is much more focus on quality and utility as the market begins to understand adaptive roles for NFTs. Currently, there are unique and not-so-unique NFT projects that get the spotlight. In this article, we will explain how to spot a good NFT in 2022.
Good NFTs have themes and artistic style
The best decision you can make is to find an NFT with long-term potential. Digital art makes up most of the best-selling NFTs and most successful collections; each has its own distinctive style, making them instantly recognizable to anyone in the know.
Take renowned NFT artist Seneca, who has mastered his visual and conceptual craft. Having worked on hugely successful projects such as Bored Ape Yacht Club, which had a concept based on collectible rarity. The artist has since taken a completely new direction in her work, but she has done that remained consistent in line with a strong concept in a new artistic style.
Invoke, appear, endure, persist.
I am so proud to announce my new working group.Portrait of Seneca@phillipsauction 11.29 – 12.02
Driven by @moonpay pic.twitter.com/uMcnuleo3O— ෴෴෴ˢᵉⁿᵉᶜᵃsּ ͝sּ ͝sּ ͝ (@allseeingseneca) 22 November 2022
Her new work, titled ‘Portraiture by Seneca’ uses themes of invocation, emergence, endurance and perseverance with the aim of invoking ‘feelings of something cosmic and otherworldly.’
Like Seneca’s work, some of the best NFTs have a solid concept and plausibility tell a story through images and content. Ask yourself, what style interests you? Minimalism, postmodernism, pixel art or anime, whatever your interest, choose something striking and something you like.
Other NFTs, such as those within The sandbox and Decentraland is used to actually build on a virtual universe. Although they tend to be less visually-based, you can’t get a concept more clear than that. The point is to avoid investing your time in an NFT that has a flimsy concept. There are plenty of monetized photo dumps out there, so remember to make sure your NFT concepts and styles are clear and, if possible, meaningful.
You can check out more awesome CryptoArt on marketplaces like SuperRare and KnownOrigin. OpenSea is the most popular NFT marketplace, housing a diverse gallery of collections and all kinds of NFTs
Application and benefit of your NFT
Owning an NFT as a collectible is wonderful, but many NFTs go further by having a tangible utility as well. These days the tool is a solid indicator of an NFT’s value, which is an important factor in determining what makes a good NFT. These days, owning the right NFTs can unlock permanent access to restaurants, festivals, nightclubs, contests, and even in-game content that has been used by festivals like Coachella.
One of the most exciting uses for NFTs is the ability to create one passive income. Generally, this can be achieved through airdrops, staking or in-game activity.
Owning certain NFTs will give you access to airdrops. Essentially, creators will reward you by providing a free asset that tends to drop before a new NFT collection hits the market. You can sell for profit, or add to your growing collection. The choice is yours.
Some NFTs, especially within the Web3 gaming space, are accustomed to earn cryptocurrency which you can use to get a passive income through effort. With this, you will be able to earn an annual percentage rate of return (API) by holding long-term.
In the Sandbox world, users can monetize their NFTs by staking the native token $SAND. You can also stake the NFT land you own in the popular Web3 game Axie Infinity, and finally in the world of Decentraland, passive income can be earned by renting out your NFT land to other players to use for entertainment or business purposes.
Conclusion
To summarize, the best NFTs have a clear purpose and they want a niche audience that they want to extract value from. Visually unique NFTs are sought after and are likely to hold value despite poor market conditions. If your NFT has a tool that provides either physical or in-game benefits, such as the ability to earn a passive income through it, then you’re probably onto a winner.
Learn more >> The Ultimate NFT Guide
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*All investment/financial opinions expressed by NFT Plazas are from personal research and experience of our site moderators and are intended as educational material only. Individuals are required to research all products before making any type of investment.
ETH enthusiast and Web3 lurker.
