Exploring the Top 5 NFT Utilities in 2022

NFT world is becoming increasingly popular in the first months of 2021 as there are many high sales.  This article will describe the top 5 use cases of NFT in 2022.

NFT (Non-Fungible Token) - A digital asset using cryptographic blockchain technology. Unlike other tokens, NFT is unique and cannot be exchanged or swapped because each minted token has its unique identifier code. NFTs have many forms of digital files such as artwork, audio, video, etc.

Top 5 use cases of NFT in 2022

1. Gaming

Many NFT games have a Play to Earn (P2E) mechanism to promote and support the in-game economy. That helps users earn extra income through entertainment gaming. Through searching, collecting, and doing quests, users will receive in-game assets such as weapons, equipment, items, characters, etc., by owning the respective NFT.

One example of NFT gaming's appeal and popularity among global users is Axie Infinity, a blockchain-powered P2E video game. According to The Information, there are 2 million people who play with the little blobs of Axie Infinity, which now has a valuation of 3 billion dollars.

2. Fashion & wearables

Wearables and clothing are also in the top 5 NFT use cases in 2022 that we will explore. This field has been quite popular and received much attention in the past year.

NFT wearables are often combined with video games or metaverse combined with AR (Augmented Reality) and VR (Virtual Reality) to bring a new and wonderful experience to the fashion world. Without ownership, it isn't easy to convince users to buy digital clothing they cannot easily use in the real world. So NFT is essential in helping users mark ownership in the metaverse space.

Let's look at the famous global brands applying NFT to the metaverse space.

• Adidas

Adidas recently announced the "Into the Metaverse" NFT collection, which includes virtual wearables that buyers can use in the Metaverse and actual clothing. All 30,000 NFTs were sold, netting the company over $22 million from the sale of NFTs.

• Balenciaga

Design four virtual costumes and various accessories for your Fortnite avatar.

• Burberry

Announced collaboration with Mythical Games and NFT launch in blockchain game Blankos Block Party.

• Nike

They build the immersive world “Nikeland on Roblox”. It includes Nike buildings, arenas, and fields where players can compete in mini-games.

3. Virtual Land

It is a digital land that can be owned on the metaverse platform. Users can buy decentralized land on the platforms. Moreover, users also can buy NFTs associated with a specific field of land.

Virtual land grows and popularizes on top platforms in 2021, such as Sandbox, Decentraland, Cryptovoxels, etc., selling over $100 million in virtual land in just one week in November 2021.

4. Digital Art & Collections

NFT in the field of art gradually became mainstream through the sale of artwork. The famous digital painting sold in the NFT community is The First 5000 Days (Beeple) for $69 million.

In addition, the CryptoPunks collection has been trending for the past 18 months. Moreover, Bored Ape Yacht Club (BAYC) reported a trading volume of $2.6 billion in March 2022. Therefore, digital art and collections can become a notable trend in the NFT community.

5. Metaverse

It can be said that Metaverse is a big concept, and NFT is a critical key in the ecosystem. The NFT provides exclusive access to the location in the metaverse and allows others to access it.

NFT has smart contracts that allow users to sell real estate on the metaverse. So, NFT and Metaverse are two elements that complement and develop each other.

To sum up, NFT has many other applications such as music, sports, digital identity, etc. However,this article is for reference and visual perspective on the utility potentials that NFT brings.