Evolution Of Music And Art Arrives With NFT Project For Hit Cross-Genre Single - Cointelegraph

Evolution Of Music And Art Arrives With NFT Project For Hit Cross-Genre Single – Cointelegraph

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In 2021, the world witnessed nonfungible tokens (NFTs) as a possible short-term investment opportunity and a way to make a quick buck.

Paired with a burgeoning bull market and an investor cohort keen on the technology sector, the blockchain and its derivative assets, like NFTs, became an investment hotspot, attracting billions of dollars. Fortunes were made and lost in the NFT frenzy; CryptoPunk #9998, an NFT which sold for 124,457.0675 Ether (ETH) — worth over $533 million in October 2021, exemplifies the incredible valuation spurts of NFT projects at that time.

Despite the lavish sums, critics questioned the true value of these digital collectibles. Yes, of course, the technology has exciting implications for verifiable ownership of digital items on the blockchain, but could one truly justify a half-billion-dollar valuation on a piece of digital art?

As a result, the conversation around NFTs is now fixated on the technology’s utility. What is in store for the future value of NFTs, and how will entrepreneurs, investors and customers use them in their personal and professional circles?

The evolution of NFT utility

NFT utility has come a long way since 2021.

During the most recent crypto bull run, the main utility of digital collectibles was their ability to tie digital content with an owner through publicly verifiable blockchain data — magnified by the ability to flex the notoriety of the collection via social media as a profile picture. However, critics disparaged the supposed utility of NFTs, since anyone could technically access the collectible content due to the public nature of the smart contracts that manage the ownership rights.

With the emergence of new trends in blockchain technology, most notably the metaverse and Web3, the utility of NFTs has experienced an evolution. For example, the classic use case of NFTs in the metaverse is proof of ownership over one’s items and the ability t