That’s just one sign of NFT going mainstream. Other hints: trading in NFTs soared 21,000% from just over US$80 million in 2020 to US$17.6 billion last year; by May this year, NFT collectors worldwide have also sent nearly US$37 billion to NFT marketplaces - that’s on pace to outstrip 2021’s total of US$40 billion.
As NFTs find greater acceptance, they’re increasingly transcending virtual collectibles and adding real value in various use cases across industries. Exact numbers are hard to verify, but over 50 brands worldwide have already banded together with NFTs.
From established fashion houses to multinational corporations, here’s how brands are leveraging NFTs to reimagine the way they do business.
| NFTs in Art and Music
For creatives, NFTs bridge the digital and physical worlds.
Artists can mint NFTs and sell it as original art, or attach them to physical artwork to prove their authenticity and ownership. For musicians, NFTs allow them to sell their music directly to end-users, bypassing streaming platforms and traditional industry middlemen in the process.
Creatives of all stripes can also sell the distribution rights to their intellectual property to the highest bidder via NFTs, and earn royalties each time their work is distributed.
Some industry stalwarts have caught on. The latest edition of Sotheby’s “Natively Digital” marquee sales for NFTs and digital art, for example, is expected to rake in at least US$2.3 million. Earlier last year, rival auction house Christie’s sold a Beeple NFT for a whopping US$69 million. World-renowned DJ Steve Aoki also confessed that he made more from his NFT sales between February 2021 to February 2022 than six albums over the past decade.
| NFTs in Sports
From collectible giveaways to providing access to exclusive events, NFTs are giving the big leagues new ways to engage and interact with fans.
In the form of tokenized loyalty programs, NFTs can also gamify engagement to build up hype for upcoming games. One such project is FANZONE Sports Club, which issues NFT passes to activities carried out by top football teams on and off-pitch.
Some NFTs even straddle between gaming and sports. Silks, for example, has derivative NFTs known as “Silks Horses” that reward holders every time the underlying real-world horse wins a race or breeds offspring.
| NFTs in Fashion
NFTs are no strangers to the world of fashion. 17% of brands listed on the Vogue Business Index already tinker with NFTs, and projects are taking center stage across the world’s most prestigious fashion events.
High fashion, in particular, has been quick to ride on the NFT wave. In October last year, Dolce and Gabbana sold its nine-piece “Collezione Genesi” NFT collection for US$5.7 million. Three months earlier, Burberry also unveiled an NFT collection in collaboration with Blankos Block Party.
Some fashion NFT projects also integrate aspects of virtual and augmented reality. At London Fashion Week 2021, metaverse-native fashion house Auroboros launched a digital apparel line that users “wear” using augmented reality.
| NFTs in Gaming
No other industry has a clearer affinity for NFTs than gaming. The use cases for NFT in gaming are diverse.
For one, NFTs could act as passes that give certain users access to exclusive communities in real life or in-game. They also provide users the ability to hold assets they’ve bought in-game, as Ubisoft Quartz has demonstrated for players of Ghost Recon: Breakpoint.
While Ubisoft is the only major gaming company to integrate NFTs into its games so far, other gaming studios have expressed strong enthusiasm for the technology. Electronic Arts CEO Andrew Wilson allegedly hailed NFTs as “the future of the gaming industry,” and Take-Two is equally optimistic about NFT prospects in gaming.
| Reimagine Tomorrow with 2MR Labs
NFTs are gaining traction across many industries, and more businesses are steadily hopping on the bandwagon. The good news: NFTs are accessible to businesses of all stripes. But with their relative nascency and rapid pace of change, adopting the technology can be challenging for smaller companies with limited capital.
That’s where 2MR Labs comes in. Whether you’re a new business or an established brand, 2MR’s suite of solutions is tailored to address industry problems across branding, ecommerce, finance, and more.
NFTs are showing little signs of slowing down amidst the crypto winter. Ride the growing wave into the future of your business with us today.