What NFTs Are Used For: Here’s What We Know
The virtual tokens (NFTs) market has seen a lot of ups and downs this year, after crypto markets fell sharply and NFT markets recorded losses. Amid the decline in trading prices, the popularity of utility NFTs seems to have become a topic of discussion. In fact, NFTs in use have a value that goes beyond being just digital collections. These virtual pieces come with special use cases, which give their owners advantages in the virtual world. Based on the blockchain system, NFTs can be inspired by art, games, or products among others.
Utility NFTs work very similarly to regular NFTs. They represent unique digital assets stored on the blockchain, but come with premium benefits for their owners.
“Specifically, utility NFTs refer to tangible assets that provide rights, benefits, or rewards to their owners that are not available for use. They give the ‘right’ to extract a service or profit from the asset owner,” explains the Blockchain Council blog post,
The e-gaming and metaverse sectors are the direct heirs of useful NFTs. Virtual NFTs, for example, can be used to act as built-in assets that represent pieces of the digital world. Purchasing this can help owners with exclusive access and unlock unique features connected to the game or metaverse.
A utility factor can be added to NFTs by providing access to physical rewards and association to the owners of these digital pieces.
The Swiss organization GainForest presents practical NFTs that represent real areas of rainforests. Owners can use NFTs to create governance tokens and keep track of forest health easily.
Some similar projects like VeeFriends and Doodles also offer useful NFTs to their managers, allowing them to participate in project management and relevant VIP conferences.
RobotEra, Tamadoge, Silks, and Lucky Block were named as the ten best NFT projects this year, a. reports by Cryptonews had shown earlier this week.
According to a Reuters report, monthly sales volume at OpenSea fell to $700 million (about Rs. 5,500 crore) in June, down from $2.6 billion (about Rs. 20,600 crore) in May and a far cry from January’s peak -five billion dollars (about 40,000 crores).
The NFT market will be $231 billion (approx. Rs. 18,41,300 crore) by 2030 and is too big a business to be ignored, believes Tarusha Mittal, COO and founder of UniFarm, as mentioned in an interview with Gadgets 360 UniFarm. is a multi-token reward system.