Non-fungible tokens (NFT) and the metaverses that they power have become extremely popular since the beginning of 2021. The interest that they generate among investors stems from the fact that these NFTs are unique collectibles that are registered on a blockchain in a way that their origin and ownership are traceable.
The fact that there are many collectors that desire to own these unique works of art or similar creations that are rare is the drive behind the popularity of the NFT market. It is important to note that the rarity of the creation and the amount of work put into its creation is a driving factor that determines how valuable its token and metaverse would be among investors.
That the NFT market is in its infancy is exemplified by the fact that some tokens that are associated with metaverses have soared more than 1000% to the extent that big players in the tech sector such as Microsoft and Facebook are looking to develop metaverse projects.
According to data from DappRadar, $22 billion were made in NFT sales in 2021. This dwarfed the mere $100 million non-fungible tokens sold in 2020. Market watchers believe that with the interest in the niche still growing, that 2022 will see more investments in NFTs.
Why NFTs And Metaverse Are Valuable
So why are NFTs such an attraction?
Many investors recognize the potentials of NFTs and the investment in metaverses as real estate mainly due to the finite nature of the resources in the virtual metaverse and the increasing demand for prime real estates in a way that is not really different from what is obtainable in physical assets.
A Virtual Asset World
The limit of metaverses as virtual creations with which humans can interact with depends on the imagination of the creators. The more complex or enticing creations would attract more users who are willing to pay premium prices for the assets available in the metaverse. These are virtual assets such as cars, land, houses and more. It is interesting to note that the mode of use of these assets are flexible depending on the model of real estate investment and management adopted by the creators of the metaverse.
Consequently, an investor in a metaverse token or even a stand-alone NFT can derive benefits by renting their virtual asset to tenants for profit while the value of a stand-alone NFT could be so high that the owner can sell for profit.
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