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- Ethereum is slowly transforming the internet, building the path to Web3 through decentralization.
- Although it’s the second cryptocurrency and blockchain on the market, Ethereum revolutionized the sector of digital assets and ecosystems by creating and deploying smart contracts.
These settlements activate immediately after all the parties complete their tasks, sealing the contracts according to predetermined agreements.
Smart contracts are excellent technologies for dApps, DAOs and real-world applications. Still, their contribution to NFTs was a game changer for many industries, from real estate to gaming and entertainment, considerably improving the Ethereum price on Binance.
And since most NFTs are created with the Ethereum blockchain, including its tools and knowledge, we’ll dive into the features that make these non-fungible tokens so profitable.
Creativity ―the factor that impacts the buyer
Developing NFTs surely requires some technical knowledge, but when it comes to an NFT that catches your attention, it’s all about creativity and understanding of pop culture. That’s because creating value in this oversaturated digital world is a challenge, and not anyone can overcome the competition, which is why creativity is so important.
Without creativity, the NFT isn’t that special, which is why most of them are not active. For example, the Bored Ape Yacht Club collection is still one of the most appreciated, at two years since its deployment on the market. The unique monkey drawings that are quirky, cool and colorful remained on top of the competition because even though they were simple, they were special.
Hence, the Bored Ape Yacht Club collection consists of 10,000 NFTs, of which value has increased significantly since even famous artists like Eminem or the late-night show host Jimmy Fallon have their own NFTs.
Community is key to an NFT advisement
Now, despite how creative and memorable NFTs are, they can’t evolve on the market without a community. That’s why every artist must engage with their communities by responding to people’s comments or offering discounts on certain creations. At some point, the community will play an essential role in the NFTs’ success.
We will take the example of Beeple, the artist whose creations over the years got to sell his NFT for a whopping $69 million. The collection is called “Everydays – The First 5000 Days,” and it depicts drawing of his everyday life for around 14 years of his life.
The fame of this collection, which seems nothing more than dull, comes from the community that Beeple has built over the years. Drawing something new every day and sharing it on social media helped him become a highly valued image in the digital world, contributing to his selling the NFT.
Utility is what makes the NFT searched for
Besides the beauty of digital assets and the trends, NFTs should have a level of utility to be truly valuable. So, you may wonder what utility all NFTs have if they’re only digital pieces of art that are sold and bought again and again.
Well, not all NFTs are leveraged in entertainment, like the Bored Ape Yacht Club, which is only a fancy thing between artists. Some are created and raised to help communities and make a difference in the online environment.
Among the many examples we can recall is “Fitness Friends,” an NFT project where people who love fitness connect and benefit from different perks in gyms. For instance, NFT owners can buy or sell assets, such as memberships or special prizes, to enhance their training sessions and courses. The project also has its metaverse, where events and fitness classes are provided for special prices or even free for some members.
What about NFT marketplaces?
NFT marketplaces are important ecosystems where investors and creators connect to meet their demands. However, the platform is usually required to be wary of aspects like design, the best storefront and an easy-to-understand customer interface.
That’s why choosing the perfect marketplace as an artist can help you gain more or less fame through their systems and advertising programs. Therefore, the platform must understand its customer requirements, meaning getting an idea of who will use it. Depending on the type of investors and digital creators, the platform should be able to deliver content and regulations that fit their wishes.
This means ensuring, among other features:
- Options for bidding for the NFTs because these are what spark interest at auctions;
- Ratings on the products to make the marketplace look safer;
- Quick search bars are essential for people to find what they would like to see;
- Filters are also important because they make the search process more efficient;
- Trusted and diverse payment options can attract more customers if done right;
NFTs can also be used in real-life situations
Besides being great for a portfolio collection, NFTs also have utility in real life. For example, if you used to collect fine art and want to complete it with modern designs, owning NFTs is the best choice because these assets are unique, and their prices are most likely to increase after your purchase.
Another interesting use case is how you can buy a home with fractions of it. That’s because homeowners can create the NFTs that represent a real property and sell it into pieces. The process is called tokenization, and it has improved the real estate market for some time now.
NFTs can also help investors get insurance faster and safer. That’s because a tokenized insurance policy can be stored on the blockchain so that others can benefit from it entirely with a simple connection. There are platforms that allow clients to create insurance products for anything possible, such as flight delays and hurricanes.
Bottom line
NFTs on Ethereum gained popularity fast, mostly due to the platform’s efficiency in helping investors, designers, and creators connect. The blockchain blends the cryptocurrency benefits with the network, creating a complete digital environment where most innovative NFTs come from and are delivered to investors.
Some of the things that make Ethereum’s NFTs so special include the creativity of users, the communities that drive success and also the utility of these assets that are diverse in sectors like real estate and entertainment.
