NFTs in the Metaverse: How the NFT Industry Seeks Solace in Diversification

The age of Non-fungible tokens has risen; NFTs are expanding fast into industries such as gaming, business, metaverse, etc. Judging from the digital world frenzy, NFTs and the metaverse could be termed as ‘closely related,’, especially in blockchain gaming and other value carriers of prominent digital social media. Despite it being a new concept, NFT gaming has become popular, with the market cap growing from $55 million to more than $7 billion in 2021. Notably, 90 percent of this growth occurred only in the last four months of the year.

NFTs Integration into Gaming on the Metaverse

The play-to-earn model has economies that reward users with assets like NFTs and in-game cryptocurrencies that can be swapped, sold, or borrowed through games like Axie Infinity. Other games such as Battle Racer have helped further utility by releasing car parts as separate NFTs. Users can then buy these parts to build their vehicles or sell them separately on secondary marketplaces like OpenSea. 

They try to bring about more use cases with more games coming up. An example of an NFT-based game is Wasted Lands, the post-apocalypse themed game that just announced its metaverse. Called The Wasted-Verse, this metaverse will become one of the first blockchain games to incorporate puzzle, racing, and other gaming aspects into its gameplay, making it the ultimate version of the Fantasy Role-Playing Game. It will become accessible to players around the world with the launch on App Store and Google Play Store, which is happening very soon. From March 2nd, players and NFT collectors can start buying their avatar NFTs collection on Open Sea to transform themselves into game characters. Hence, allowing them to explore this futuristic Wasted-Verse.

Although it is still years away, the methods in which NFTs are used in these blockchain networks can be used for skins and cosmetics in more mainstream games such as Fortnite. It would not only let players better reflect the ownership and uniqueness of their goods, but it would also raise worldwide in-game expenditure, expected to exceed $74.4 billion by 2025.

NFTs and Real Estate Investment in the Metaverse

NFTs are also used in the metaverse to purchase virtual land. Instead of a tangible deed, these virtual places employ NFTs to show ownership of specific regions inside a virtual world.

Sandbox’s LAND, for example, has around 300 square feet in the metaverse. Decentraland, on the other hand, is seeing land piece size modifications to 50-square-foot portions. Location is crucial in digital real estate, just like in the real world, and plots near access points or sites like virtual arenas that guarantee virtual foot traffic tend to gain value. Furthermore, consumers can rent out their NFTs to generate passive income depending on market demand. Owners of NFTs in Wasted Lands can rent out their idle assets to gain more revenue.

NFTs and Social Life

The metaverse has also expanded to include social gatherings and parties. People collect NFTs for the social credit, prestige, and sense of belonging that can be found in a community of like-minded supporters, as evidenced by Twitter’s recent acceptance of NFT profile images.

Meanwhile, NFT passes may be used to generate cash for virtual events, parties, and concerts held across many metaverses. Avatar NFT ownership gives virtual membership a plethora of unique experiences in the metaverse and the actual world, strengthening community and social interactions. Through content production and company launches, NFT avatars are already contributing to defining the metaverses’ experiences and surroundings.

The NFT Community

Whether in the actual or virtual world, communities are destined to exist. NFTs are crucial for metaverse since they are used for identification, community, and social experiences. Keeping specific NFT materials, for example, might demonstrate users’ support and loyalty to the project while also conveying a variety of points of view. As a result, like-minded individuals join the community, share their experiences, and create content. An NFT avatar is one example.

Avatars also allow folks to obtain virtual subscriptions to unique material in the virtual world. Simultaneously, NFT avatars continue to impact the metaverse’s experience and surroundings via content production and business launches.