What are the top NFT collections that you should know about?
Even those who are new to blockchain or crypto-gaming, the exploding sector of the entertainment industry, will be aware of NFTs. In the third quarter of this year alone, a whopping $10.7bn of NFTs were traded, up from $2.5bn in the first half of 2021.
So what’s the big deal about NFTs?
Well, non-fungible tokens are collectible because they are one of a kind, which is what pushes up their value — in addition to being a hugely popular cultural trend.
Why has the NFTs space experienced such a sudden, stratospheric rocket-into-space success over the past few months? Artwork NFTs are a huge part of this fast-growing market. While conventional, tangible pieces of art are valuable because they are unique — only one physical version is available — digital art can be copied and reproduced with much more ease.
The genius of NFTs is how they tokenize the art or asset, providing the buyer with a unique encrypted digital file whose authenticity is guaranteed by its registration on a blockchain. Like a certificate of ownership, this confirms the asset as original, as each token of a digital asset has its own authenticating information (code).
This also enables the tokenization of in-game assets as blockchain-based unique, collectible digital tokens. Gaming, NFTs and the blockchain are set for a golden future together.
The NFT market in 2021
In the second half of this year, the NFT market has gone ballistic, with $4.2bn trading in October alone, the third consecutive month with more than $4bn trading volume. NFTs are now the main source of blockchain traffic, ahead of games and DeFi (decentralised finance).
Sales of these digital assets have rocketed this year, with OpenSea, the world’s largest NFT marketplace, recently marking a major milestone: its all-time cumulative settlement volume passed $10bn, according to DappRadar’s November 2021 report. All the top 30 marketplaces together (by total sales volume) earned $11bn, and two-thirds of total NFT volume is from the top three marketplaces (OpenSea, Axie and CryptoPunks) and . That is an unimaginable amount of currency for intangible digital tokens.
The most expensive NFT ever is Mike Winkelmann (Beeple)’s Everydays: The First 5000 days, a JPG digital image sold at auction for $69m in March 2021. The image is a collage of 5,000 art pieces, one from every day since May 2007. Now one of the most expensive living artists in history, he has collaborated with brands like Nike and Luis Vuitton. Beeple also holds another spot in the list of highest-priced NFTs, with CROSSROADS ($6.6m), depicting President Trump lying face down and naked, after he lost the 2020 US presidential election.
These are the most interesting NFT collections, in terms of both cumulative trades, and potential value.
Axie Infinity
Launched: 2018
Studio/company: Sky Mavis
What they are: Pokémon-like creatures called Axies which are bred by players to fight each other. You can also buy tokens of the Axie territory, called Lunacia.
This play-to-earn cryptogame has facilitated $2.5bn-worth of NFT transactions since it launched, making it the most-traded NFT collection ever. The third quarter of this year saw a sharp spike, with a trading volume of $2bn, accounting for 20% of total NFT trades during that period. Growth during 2021 has been more than 2,000%.
CryptoPunks
Launched: 2017
Studio/company: Larva Labs
What they are: 10,000 pixel-art characters inspired by the punk movement and cyberpunk fiction
CryptoPunks are some of the highest-priced NFTs, and they have a total trading volume of over $1bn. CryptoPunks are favoured by celebrities — Snoop Dogg, Reddit founder Alexis Ohanian, DJs Steve Aoki and Marshmello, Jay Z and Serena Williams all have Cryptopunk NFTs in their wallets.
The most expensive CryptoPunk is Alien punk 7523, with gold earrings, red knitted cap and medical face mask, dubbed Covid Punk. This NFT was sold for $11.7 million at auction in June 2021. The Alien punks series is limited to nine NFTs, and this is the only one with a mask — being so rare, it is highly collectible and a classic example of why the NFT market is rising so meteorically. CryptoPunks hold two other spots in the top 10 most expensive NFTs list.
This type of NFT is known as a PFP (profile picture), as they can be used as the CryptoPunk owner’s avatar on social media.
Decentraland
Launched: 2015
Studio/company: Decentraland Foundation (founded by Ariel Meilich and Esteban Ordan )
What it is: A social metaverse, or virtual world, where people can create experiences and games, and monetise and trade their content digitally as NFTs, including wearables and decoration. In October, Decentraland held a virtual four-day music festival complete with five stages, merchandise stands and a funfair.
Players can also buy NFTs of 16m parcels of 3D virtual space, called LAND, and estates (more than one LAND). Decentraland is a decentralised platform owned and governed by its own community of users. Its own cryptocurrency. MANA, has gone up 360% in value in the last month, largely thanks to Facebook’s announcement about changing its name to Meta, signalling the importance of the metaverse.
The metaverse is another Web 3.0 concept with enormous potential — watch this space for more articles coming soon on this equally hot topic!
Bored Ape Yacht Club
When launched: 2021
Studio/company: Yuga Labs
What they are: 10,000 grumpy-looking cartoon apes with over 170 traits, including fur, mouth, headwear, and clothing.
The name comes from crypto-speak to “ape [into]”, meaning to buy or invest in, sometimes too quickly without doing research. Ownership of an ape grants access to an exclusive online club, where members can use The Bathroom, a collaborative digital graffiti board. Apeholders can gain additional benefits through roadmap activations.
They can also use the image of their own ape commercially, in other words selling T-shirts, pictures, mugs, and other branded merchandise. BAYC has a trading value of $1bn, and community fundraising has donated over $4.5m to various causes including an orangutang charity.
Mutant Ape Yacht Club was created by exposing the existing Bored Ape NFTs to a mutant serum, and then releasing 10,000 further Mutant Apes.
Now the simians have their own pets — with the Bored Ape Kennel Club drop, also numbering 10,000, one dog was allotted to each ape. Rolling Stone magazine is launching a BAYC collectible zine and NFTs, and in late October/early November BAYC held an in-person Ape Fest in New York, with real-life parties (including on a yacht, naturally).
Bored Apes are popular with celebrities, such as NBA stars Stephen Çurry () and Josh Hart, whose apes are their PFPs on SM, while a collection of 101 Bored Apes was sold at auction for $24m in September.
The NFT phenomenon shows no signs of slowing down, and doubtless we will see many more exciting collections dropped over the next few months. Will 2022 see the market climb even higher?
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