NFT’s Take Center Stage As Mega-Celebs Continue to Jump On Board
Don’t take your eye off the Non-Fungible Token (NFT) market just yet. While some pundits early in September quickly proclaimed the market peaked in August and was on the downside, high profile artists, celebrities and sports teams continue to jump in with new projects that are capturing mainstream attention.
Just this week, Tik-Tok announced its first foray into NFTs, unveiling its “TikTok Top Moments” collection which rolls Oct. 6. The first in a series of 6 will features superstar Lil Nas X with artist Rudy Willingham.
“The single-edition Lil Nas X TikTok NFT will feature Rudy Willingham’s viral stop-motion video of the artist’s Montero (Call Me By Your Name),’’ Variety reports. The collection includes 81 frames of the video, each created by Willingham. Each frame, TikTok says, “reflects the different part of (Lil Nas X’s) genius.“
With a reported 1 billion active global users, TikTok’s move into NFTs has significant power to boost interest and activity in the digital market.
So does the NFL, which also formally jumped into the NFT market this week.
The NFL and the NFL Players Association are working with Dapper Labs to “create unique digital video NFTs (non-fungible tokens) of the top plays in a season and also in league history.”
"From the Hail Murray to the Minneapolis Miracle, magic happens in NFL stadiums. As a league that continually raises the bar, we are proud that the NFL and NFLPA have chosen Dapper Labs to deliver for NFL fans worldwide the Moments they've been waiting for. We can't wait to give the more than 300 million NFL fans the opportunity to own the game that matters to them and engage with the sport in a whole new way," said Roham Gharegozlou, CEO of Dapper Labs in an NFL press statement.
Even fashion has found that NFTs can be lucrative.
“An item from the Collezione Genesi NFT, called the Glass Suit and designed by Domenico Dolce and Stefano Gabbana, has fetched a little over $1 million (£740,000) at auction – which is 351.384 ETH, to be all crypto about it,” Vogue UK reports. “To be clear, in addition to their NFT, the new owner will also get a physical suit – tailored to their specifications – for that price. It is the most valuable suit that Dolce & Gabbana has ever sold.”
Think about it: It's been just four years since Larva Labs created what are known as the first NFTs - Crypto Punks, and gave away most of the 10,000 pixelated faces for free.
“Back then, they were just nonfungible tokens, with very little name recognition outside the hardcore blockchain crowd,” Crunchbase explains.
The NFT market gained traction in 2020, and in 2021, it broke out, with a record volume of $5.2 billion worth of NFTs traded in August, according to DappRadar. “As with DeFi, 90% of the NFT trading volume happened in Ethereum.”
While the number two digital currency dominates in the NFT space, other blockchains are working to capitalize on the craze. Ripple (XRP) announced this week that it was launching a $250 million “Creator Fund” to support developers.
“The Creator Fund will engage with creators, brands and marketplaces to find new use-cases for NFTs on Ripple's XRP network, which may help it compete more fiercely with the ethereum blockchain - the main network for NFTs,” Business Insider reports.
Cardano received a boost this week in its efforts to grab a greater share of the NFT market. EMUGO, a founder of Cardano (ADA) announced in a tweet it would invest $100 Million to accelerate “DeFi, NFT solutions and blockchain education.”
Both moves could help the platforms lure more creators and buyers to the XRP platform, especially as the gas prices – the fee – on Ethereum is high.
“As the industry narrative is squarely focused on NFTs and digital collectibles there is an underlying story emerging,” Dapp Radar said in a September blog post. “One where Ethereum gas prices are being pushed through the roof by competing NFT projects that seemingly arrive by the day. As these collections are minted, they burn ETH and fill up blocks with transactions. Causing gas prices to spike. Making DeFi, and other applications on Ethereum suffer from expensive gas fees and slow transactions.”
October will be an interesting month for the digital currency and blockchain universe. Historically, September was a slow month and the market picks up in October. Will these major moves in the NFTs world fuel momentum? That literally remains to be seen and traders will be watching.
Joyce Pavia Hanson