Mainstream NFT adoption will be driven mostly by their utility
Nonfungible tokens (NFTs) have seen a stratospheric surge in popularity accompanied by sky-high values, giving rise to legitimate and ongoing worries about a market bubble, as many projects lacked real-world application or utility.
NFT utility is an essential component because it adds value and functionality to the technology. One of the most well-known use cases for NFTs is the ownership of digital art pieces like CryptoPunks. Play-to-earn (P2E) gaming is another use case that had massive popularity in 2021.
NFTs can assist firms in various sectors with their operations since, at their core, they contain evidence of ownership and proof of provenance. In addition, collections have access to a strong branding strategy that works in conjunction with their public image due to granting commercial rights to NFT owners for their assets.
However, the market needs additional use cases for NFT technology to reach mainstream adoption as it adds value and usefulness to NFTs, helping them to stand out among the crowded digital asset projects.
For example, picture-for-proof (PFP) projects may have driven huge NFT growth in 2021, but a lot of it was based on speculation by investors trying to make a profit. In addition, market leaders like the Bored Ape Yacht Club have actual utility, with each ape granting the owner access to events and copyright licenses to monetize their NFTs. Many copycat projects lacked any utility, apart from mimicking popular projects and promising vague “future developments” for holders.
Furthermore, brands that want to use NFTs need a solid strategy that spans their business model and industry for particular use cases. Unfortunately, many have entered the NFT market without a proper plan or vision, rushing on the
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