New Utilities Will Bring NFTs Back

22 Jun 2024

The bull market is back on, with many crypto assets returning to their previous all time highs, and new projects popping up every day. It’s a different story for the NFT community though, because the liquidity has never really returned to this corner of the market. 

There are still many billions of dollars invested into NFTs and there is new innovation happening in this sector all the time, but the speculative frenzy from a few years back is gone and there are fears that this same level of excitement will never return. 

NFTs Are Here To Stay

NFTs aren’t going anywhere though, and the ongoing innovation proves that, but the industry is entering a new era, where the NFT markets are driven by utility instead of speculation. 

The profile pictures and digital collectables that have come to be associated with NFTs were a proof-of-concept for the technology, and some of these projects will always have value because they are a part of crypto history, but collections that don’t have this kind of historical relevance will need to offer some type of utility for their assets to have any value. For example, Yuga Labs has been at the forefront of bringing utility to their users through airdrops of additional assets or access to metaverse experiences. 

Gaming & Metaverse 

When it comes to utility for NFTs, gaming and the metaverse is a very big part of the conversation. NFTs are already being used in a ton of different Web3 games, and this seems to be where most of the excitement for NFTs has been since the speculative frenzy calmed down in 2022. In games and virtual worlds, nearly every part of the experience can be NFTs, whether they are characters, costumes, weapons, in-game items and terrain, or even access permissions.

NFTs will become even more powerful in gaming and metaverse experiences once creators are able to remix and recompose content, as they are in the Somnia ecosystem

Mainstream NFT Utilities 

Utility can come in many different forms depending on the community or customer base that is being served. For example, NFTs can be used for membership or rewards programs. Some musicians and artists have already used NFTs as tickets into their fan clubs, and some airlines in Europe, like Baltic Airlines, have even begun using this technology to improve their rewards offerings for members. Offerings like these are bringing NFTs into everyday life, and making people more familiar with them. 

Somnia’s Contribution 

Speed and interoperability are two factors that make NFTs much more useful, opening up the door for new use cases, and making the ecosystem more affordable for the average person.  Somnia is the fastest EVL L1, and its set of omni-chain protocols have been designed to connect the $100 billion in value fragmented between the NFT, gaming and metaverse sectors. 

This shift towards practical applications is a sign of a maturing NFT industry, transcending its early speculative bubble and evolving into a core part of the infrastructure for the new creator economy.

To learn more about the future that Somnia is building, read our litepaper and join our community

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