There’s no denying that all things digital are surging in popularity, constantly forging new trends and concepts. Whether a newb or a veteran, we all need to stay on top of digital trends. An emerging one is NFT collections that have penetrated the global art market, even outpacing some of the traditional masterpieces in sales numbers. While still new, the NFT space has a steady influx of great ideas and creative outbursts. It’s easy to get carried away by all the vibrant visuals out there, however you’ll need a solid knowledge base to spot value in them.
Before the endless Twitter and Discord scrolling to keep up with the newest NFT drops, there are some essentials to help you out.
What Are NFTs?
To better understand what NFT collections are, let’s recap NFTs.
Non-Fungible Tokens (NFTs) are blockchain-based digital assets. They come with specific data that tells us what kind of file it holds, who has created it, who owns it and more. This data is known as Metadata, which is recorded on the blockchain that the token is on.
The world better recognizes and misunderstands NFTs as digital art with ownership licences, but it goes a bit deeper than that. You can link an NFT to an image, video, or object as examples, but what truly sets it apart from any copy of it is the unique ID that the NFT will carry when it is created.
The term Non-Fungible means non-replicable; you may have copies of digital art floating around the net, but the token that signifies your ownership cannot be duplicated. If you’re making your first steps in the digital world, besides getting quick insights, you might want to dive deeper into what NFTs are.
NFTs have endless possibilities when it comes to their applications. Although the first ones that pop into your head are the Art projects, there’s more than that.
One-of-one NFTs represent unique digital artwork that can have only one owner at a given time. As it’s mined as a non-fungible token, there is only one copy of it on the blockchain. This definitely adds up to digital art’s value on the market.
Generative art is generated by the algorithms and codes that craft unique artwork variations. Collectors can own a unique artwork version, given the created variations can be minted as separate NFTs.
NFTs can also be incorporated into video games where you can have in-game assets. Skins, weapons, accessories and beyond help spice up the gameplay.
NFT space makes good use of membership passes. You can get access to or special perks for some events as an NFT holder. Member-only perks can vary, however, they're all something you'd definitely want to have.
Profile Picture or PFP NFTs are non-fungible tokens you can use as profile pictures in online settings or flex them on different social media platforms.
As the term states, it's the digital photograph minted as NFTs. Incorporating photography into the NFT space is still growing. As an owner, you will have a unique copy of the photograph on the blockchain.
Why Are NFTs Popular?
To keep it simple, let's compare them to original paintings. You will indeed pay more money to get the actual, original artwork than pay for a copy, right?
The same logic applies to NFTs, as you buy original artwork from someone else. The difference is that these assets can be anything in a digital format, including screenshots, various paintings, and many more. In addition, they have broader applications in the NFT space.
What Are NFT Collections?
An NFT Collection is a set of NFTs published by an artist (or several). It contains a limited number of NFTs, and they all usually follow the same artistic style, with minute variations. Other collections could be a small number of unique pieces that all differ from each other entirely.
An example of this is the Bored Ape Yacht Club collection. They are all images of varying apes, differing from each other in small ways—mouth, fur style, expression, etc.
Who Can Create an NFT Collection?
One of the most appealing parts of NFTs is that anyone can be an NFT artist and create a collection. Unlike traditional art, where one needs to have enough artistic skills or even pass professional training, the barriers to creating NFTs are fewer as they require more technical work.
How to Spot Value in NFT Collection?
Every collection is significant because of the nature of NFT technology. Tokens cannot be copied since they are non-fungible. It is possible to have more sales and become famous when the NFT is rare and trendier. Additionally, the artist's reputation plays a significant role. If you are already a famous painter, turning your paintings into digital assets and increasing sales will be easier.
Each day, a new collection is created and introduced to the world. Here are some that have already gained world popularity and indeed deserve an immense amount of credit.
Famous NFT Collections
Bored Ape Yacht Club
One of the most successful projects in NFT history is known as Bored Ape Yacht Club. The collection, shortly known as BAYC, consists of 10,000 NFTs that grant each member ownership of a unique ape figure and access to an exclusive community.
The most expensive NFT in the collection was sold for $3.59 million (769 ETH). Eminem, Jimmy Fallon, Stephen Curry, Snoop Dogg, KSI, Lil Baby, and Post Malone are among the celebrities who own BAYC NFTs.
Mutant Ape Yacht Club
MAYC may be considered an evolution of the Bored Ape Yacht Club or BAYC NFT project, but with some differences. Whereas the BAYC NFT collection has 10,000 avatar sets, MAYC contains around 20,000. The MAYC is more of a thank-you present to BAYC collectors with the Mutat Serum facility. Holders of BAYC NFTs might purchase the Mutat Serum to convert their BAYC NFTs to new MAYC NFTs.
CryptoPunks, one of the first NFT collections on the Ethereum blockchain, was established in June 2017 by Larva Labs and bought by Yuga Labs in 2022. It comprises 10,000 distinct 24x24 pixel art pictures, most representing humans. Some avatars, including zombies, apes, and aliens, come at higher prices because of their distinct varieties.
Cool Cats is a collection of 9,999 arbitrarily produced and stylistically chosen Ethereum Blockchain NFTs. The holders of these NFTs can access unique events, including NFT claims, raffles, community prizes, and more. The collection has been traded in secondary markets over 22,000 times since its release date in July 2021.
There are always some appealing NFT drops you would like to keep an eye out for. Staying tuned and up-to-date is top among the things you need to do when joining the NFT space.
NFTs are still emerging and evolving assets. Any insights provided in the above material should not be perceived as investment or financial piece of advice. Do your in-depth research to make informed decisions on performing any action with NFTs.