Understanding Utility NFTs With Examples
Posted By : Priyansha Singh | 28-Jun-2022
Utility NFT Development
NFT market has undoubtedly reached mainstream adoption, considering its demand, development, and implementation over the past few years. With the inception of next-gen metaverse development services, NFTs have undergone massive transformation and ratification.
This year, NFTs aren’t showing any visible signs of decelerating either. Moreover, with each passing day, hundreds of thousands of Non-Fungible Tokens are being constructed, and simply developing or simply owning an NFT is no longer that enticing for most people or businesses.
With the NFT market space getting more crowded, creators have started to reimagine multiple ways that provide users with more reasons to collect NFTs. In this existing era, NFT collectors need not only get to hold an NFT but also get a plethora of merits along with it. The applications, use cases, and utility behind NFTs are proving to be the real key leading to the project’s success.
From access to live concerts to exclusive club memberships and new collections, the passive advantages of holding utility NFTs are one of the latest hot trends that you should consider jumping on earlier this year. In this blog, we will take a closer look at utility NFTs with their examples for a better understanding.
Why Are Utility NFTs So Important?
There has been an exponential rise in NFTs’ popularity, however, they are at their best next-gen digital assets. With that, there have been continual and valid concerns over NFTs because of their increasing prices and use cases.
The cost of NFTs is often arbitrary, making celebrities and events rake in more than others. Moreover, it is not entirely about art and entertainment either, as it should ideally be. Before the inception of NFT 2.0, they were being compared to the DotCom bubble of the 90s.
Therefore, in order to sustain, NFTs had to evolve. NFT Utility serves a pivotal function in inculcating functionality, application, and value to the non-fungible tokens that furnish real-world use cases. Adding utility will further aid in democratizing the process, lowering the gap between commoners and celebrities in the metaverse. NFT 2.0 will also assist the world to implement and embrace the profound innovations in Web 3.0.
A Few Examples of Utility NFTs
There is a myriad of utility NFT examples from various industries and fields such as fashion, gaming, scientific funding, investment, ticket/token gates, and more. Let us check some of the most prominent examples in different fields.
- For instance, in the gaming metaverse, let’s consider the game World of Freight – a racing game where $WOF tokens are generated passively. In turn, these tokens help in customizing vehicles and upgrading in the game. Moreover, Fractal gives the NFT owners an exclusive pass to special content such as in-game characters, content, secret levels, and more.
- Several P2E games and items are also among the most popular Utility NFT examples. Games such as Axie Infinity (the pioneer in gaming NFTs), Zed.run (digital horse racing where the in-game horses are NFTs), Loot (adventure gear items are availed as NFTs such as pieces from Dungeons and Dragons), and CryptoManga (NFTs are used for representing pseudonymous identities in the post-civilization era of a DeathLess city).
- Digital fashion and luxury items have also found their utility in various expanding and interesting metaverse projects. For instance, CloneX offers ownership of the 3D files with fully customizable digital NFT avatars. In reference to that, there is a huge possibility of creating the exact accessories and clothing items in real life.
- Within the metaverse, gambling NFTs also form a major segment of utility NFTs. Coinleague, for example, is another utility NFT example in fantasy gambling that rewards NFT holders with special benefits and revenue shares from the contest.
NFT Utility Use Cases in 2022
NFTs have swiftly become one of the most prominent and significant parts of the metaverse and the linchpins of businesses across many industries. As highly flexible digital tokens, they have a plethora of use cases.
In accordance with that, Utility NFTs have also gained a strong foothold in the digital landscape. Currently, utility NFTs have been broadly classified into the following industry-specific categories:
- Community NFTs
- Social NFTs
- Fantasy Sports NFTs
- In-Game NFTs
- Gambling NFTs
Furthermore, here are some prevalent examples and use cases of Utility NFTs in 2022 that are already disrupting the industry in profound ways including:
- Clothing & wearables
- Membership exclusivity
- Digital Art
- Digital Identity
- Music/Videos NFTs
These are only a few examples, however, there are more sectors and domains such as DeFi (decentralized finance) that can positively embrace NFTs. As such, this clearly depicts and reflects the flexible nature of NFTs and that these digital tokens have colossal potential to disrupt and revolutionize many sectors of the global economy, primarily the expansive metaverse.
The Future of Utility NFTs
Utility NFTs marry both exchanges as well as experiential value by efficaciously combining collectibles with utility. For instance, a simple digital artwork holds the capability of opening doors to limitless possibilities.
NFT Development With Oodles Technologies
At Oodles Technologies, we have gained extensive experience and expertise in creating NFTs and metaverse marketplaces for businesses across various industries. As an established NFT development company, we provide end-to-end NFT development and NFT marketplace development services using cutting-edge technologies such as Solana, Ethereum, Polygon, Matic, Sidechain, Cardano, and more. If you are looking for NFT development solutions, feel free to drop us a line. Our experts will help in selecting the right approach and technology for your project whilst proving extensive support and guidance through the journey.