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NFTs charm storms the cryptocurrency world

NFTs charm storms the cryptocurrency world

Last updated 15th Dec 2022

Digital collectibles or NFTs (non-fungible tokens) are now going mainstream — courting attention and the imagination of crypto fans.

Case in point: Dolce & Gabbana recently unveiled chic collections of clothes and accessories that digital avatars can wear. And they’re selling them all as NFTs this month.

Cryptopunks, an NFT collection of 10,000 uniquely generated characters, sold $1 billion in sales. One particular NFT was sold for $1.23 million within a few hours on Saturday.

Russia’s State Hermitage Museum sold $400,000 worth of NFTs. Among the six collections sold, two featured the famous “Madonna and Child” by Leonardo Da Vinci. And “Composition VI” by Wassily Kandinsky.

Alibaba of Japan, Rakuten of China, and FTX (the world’s largest crypto company) are the latest flourishing NFT markets.

What’s the exact driver of the NFT mania?

It’s hard to pin down the exact reason. But one thing is certain: The wider crypto surge has spawned legions of crypto millionaires and billionaires. These are people who nurse strong blockchain beliefs and are ready to bet on its success, thanks to their bulging wallets.

These crypto fanatics are banking on NFTs — largely created on the Ethereum blockchain — to charm millions of ordinary people into the crypto world

That said, the rise of NFTs cements the case for Ethereum becoming the “vehicle” to the digital world — or “metaverse” as we now know it. The term is a trending tech topic.

What is “Metaverse”?

Mark Zuckerberg defines the metaverse as a 3D Internet, where instead of viewing digital content, you get absorbed in it.

He recently laid out his metaverse plans. And promised to turn Facebook into a “metaverse company” using virtual reality projects. He recently launched a virtual reality office space to kick off his idea.

The metaverse is a collection of shared digital worlds where users can move from one digital world to another — clutching their property, money, and digital identity.

Let’s paint a clearer picture. If you buy a virtual space of Paris or London, you’ll retain its value when you enter into another virtual space. So, no space will have control of your accumulated digital assets or items.

When crypto enthusiasts see things from this perspective, you can expect NFTs to flourish and trigger a race to the new digital world.

The crypto ecosystem is dynamic, which means NFTs value can dip in the long run. Why? Because their value is tied to digital assets. However, crypto is also evolving fast. And chances of NFTs succeeding are higher than ever before.

Walter Akolo

Walter Akolo

Walter is a writer from Nairobi, Kenya. He covers the latest news on the cryptocurrency market and blockchain industry. Walter has a decade of experience as a writer.