Top 9 Types of NFTs - The Complete List

Top 9 Types of NFTs - The Complete List

Good morning,

By now you know what an NFT is and are looking a little deeper into the types of NFTs that are popular right now. W
hile still an emergent tech, NFTs are moving beyond the digital art space realm which it has gained popularity for, and it's important to understand what other applications they can be used for. 

Let's jump into the top 10 types of NFTs that are currently breaking ground within the space. 

#1 Art

To pay respect where it is due, the art industry still remains the biggest source of NFT engagement today. NFT technology is an innovative vessel to support and collect the work of this generation’s creators.

Art projects were the first to popularise the NFT market in 2020, however they have been around since 2016. For example, Crypto Punks, a popular NFT art project, initially launched in 2017. Other prominent examples of art NFTs include Fidenzas and Galaxy Eggs.

The history of NFT tech and art is inextricably linked. As a result, cultural value is further added to these artefacts, where collectors become attracted to particular messages, collections and time eras of art pieces.

#2 Gaming

NFT elements are breaking ground in the video game industry across all platforms (console, PC and mobile). The value of the global gaming industry currently exceeds US$300 billion, with an active user base of 2.7 billion people worldwide.

NFTs within the gaming world are taking the forms of avatars and playable characters, skins, upgrades, new environments, and more. In-game market mechanics for these types of products are typically purchased from gaming companies as a one way transaction. For example, in order to get a new Fortnite skin, one must utilise in-game currency (V-bucks) to get access to the product from the company. NFT technology revolutionises this dynamic, offering the possibility of a community-based marketplace that supports creators, collectors and gamers alike in buying and trading digital assets. 

Axie Infinity is a prime example of NFT technology incorporated into games. It is a P2E (play to earn) game where characters are used to battle, breed and trade. An in-game economy exists where players can also buy, sell and trade resources which they earn along the way. 

#3 Music

NFT technology has the potential to disrupt the entire music industry. Today streaming services reign supreme, and it’s becoming more difficult for artists to make a splash due to an oversaturated market and inherently unfair economic structure.

The vast majority of musicians are paid fractions of a dollar per steam, making the industry profitable for established artists with monumental fan bases. While it is still early days, NFTs allow musicians to create a more direct artist to fan connection, as well to benefit financially from the tokenisation of their work, thereby creating new revenue streams for middle class artists. They can release music as NFTs, and also have the ability to create deeper connections with their fans through establishing exclusive access communities. The options are limitless, and are still being explored.

Ultimately, the NFTs are used as a means of funding a musician without the need of an agent or intermediary, flipping the music industry on its head and making agencies work harder to provide value for the artist. Gone are the days of the internet being a giant copying machine, of intermediaries taking larger cuts than creators and/or artists not receiving royalties. Innovators in the music NFT space include RAC, Dillon Francis and 3LAU.

#4 Community membership

Community-based NFTs are becoming increasingly popular within the NFT space. Tokens are granted to members to provide access to early alpha content, whitelist giveaways and community networking. The Bored Ape Yacht Club (BAYC) has popularised this usage of NFTs as a membership, and a more recent example has been with Rug Radio.

#5 Event tickets

NFT technology is being applied to tickets for events both virtually and in real life. These NFTs act as a digital receipt granting access to events, but can also be sold, traded and collected for further value. Different events grant different utility to these tickets, such as exclusive events, backstage passes, early access etc. The Coachella music festival is starting to utilise NFTs in such ways.

#6 Metaverse land

The metaverse is a virtual landscape based on web3 and blockchain technologies, and is made up of hundreds of different metaverses including Decentraland and The Sandbox. NFTs provide proof of ownership of land within these digital worlds.

The value behind these land plots vary from metaverse to metaverse, however this emerging market has massive potential for value increase. Monetisation, advertising deals, leases, rentals, and hosting events are just some of the ways revenue can be generated via metaverse land ownership.

#7 Collectibles

Collecting has migrated to the digital world, with the scarcity and immutability of collectibles make them a great match for NFTs and blockchain technology. This is primarily because collectibles, be it a rare Charizard, a vintage pinball machine or a CryptoKitty, derive value from their nature of being unique and irreplaceable.

As it stands today, the global collectibles market is currently valued at over $4 billion and is expected to grow at a 6% compound annual growth rate and reach $628 billion by 2031. The collectability and added utility of NFTs make them a potentially solid investment, depending on the project and its goals.

#8 Sports

Similarly to collectibles, sporting NFTs have taken a seat as a dominant player in the market. Since 2021 we have seen a vast number of top tier sporting brands and athletes embrace NFTs to create unique in-game moments and immortalise gameplay. 

Popularised by NBA Topshot, an NFT marketplace that was developed in partnership with the National Basketball Association, we are now seeing an influx of sporting brands jumping on board too, including the NBL, UFC and the Australian Open. This is because NFTs have opened up a plethora of possibility that allows for greater connection between brand and fan, and a new revenue stream for brands. You can think of sports NFTs are the next-generation of baseball cards. 

#9 Clothing

While you may not be able to physically wear digitally owned clothing assets, there is real market demand for their collection nonetheless. Owning luxury line brands, such as Gucci and Luis Vuitton are as much tied to status of ownership as they are to wearing the physical garments.

This same sentiment of exclusivity is being developed in metaverse market spaces, where seasonal drops and collections become immortalised via NFTs. For example Adidas recently collaborated with BAYC, generating a unique metaverse experiment which showcased the symbolic and cultural power fashion has and how technology interplays with this. Other noteworthy fashion NFT brands worth taking a look at are RTFKT and AurosBoros.

Wrap Up

So there you have our top 10 types of NFTs that you should keep an eye out for. To keep exploring the space be sure to check out our list of Twitter accounts we think are worth a follow here.

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