NFT — how to make money on non-fungible tokens in 2022 (Part 1)
20.12.2021 | auglovoi
At the end of last year 2020 and the beginning of this year 2021, non-fungible tokens were experiencing their peak popularity, and investments in NFT were generating tens and hundreds of thousands of percent returns. It was during this period that news came out every week that the rights to this or that digital property had been sold for colossal sums of money. The record almost reached $70 million.
Although the wave of popularity of NFT has somewhat subsided, and the volume of the market is no longer growing at the same rate, contributions to non-fungible tokens can still bring significant profits. Let’s consider which tokens are worth investing in and how things are currently going in the NFT market.
Why NFTs have great potential for investment in 2022
If we compare the first half of this year with the same period last year, we can say that the market for non-fungible tokens grew by more than 150 times, almost reaching $3 billion. Moreover, if at the beginning of 2021 the monthly turnover on NFT platforms was about $35 million, by August this figure reached $800 million. Also the number of addresses in distributed registries, where non-fungible tokens were stored increased from 17 000 to 64 000. At the same time, the annual turnover of NFT may reach $7 billion.
The global auction houses, through which various digital rights objects were sold, also played an important role in such rapid growth, which additionally attracted players far from cryptocurrency to the market. In addition, quite a few sports fans have also decided to use blockchain technology to support their teams.
All this proves that the NFT market has not yet completely exhausted itself, and the potential for investment is still quite high. It is also worth considering that while cryptocurrencies such as bitcoin are heavily dependent on decisions by regulators, or even one message from Elon Musk, the value of digital rights in most cases only increases.
In what to invest in NFT in 2022
For investing in 2022, you can choose between collectible and gaming NFTs. They differ, as the name suggests, in their purpose. Whereas collectible tokens involve proof of ownership of a digital object of art or other information, gaming tokens can only be used in a game, making each player unique.
In this part, we will look at collectible tokens and the major projects that not only performed best in 2021, but also have the potential to invest in 2022.
Which NFTs were growing best in 2021
CryptoPunks
One of the first cryptocurrency collections that became particularly popular. The daily trading volume exceeds 700 000 ethereum coins, which is equivalent to about $2.5 billion. A total of 10 000 NFT punks have been issued, owned by 3 300 people, making the commodity scarce and unique.
With luck, it is possible to make a profit literally in a matter of days. Often there were cases when, having resold cryptopunk the day after the purchase, a lucky investor managed to earn a hundred thousand dollars.
In addition to the popular non-mutual token trading platforms, CryptoPunks, have been featured in several auction houses, including the world-famous Christie’s.
Bored Ape Yacht Club
A set of “bored ape” pixel images. Like the cryptopunks, there are 10 000 of them, but the owners are a bit more, almost six thousand.
When initially sold, one NFT could be purchased for 0.08 ethereum, and now one token is worth over 53 coins. In addition to the fact of ownership, Bored Ape Yacht Club gives you access to a virtual yacht club, and enjoy socializing with other collectors.
CryptoKitties
Another one of NFT’s innovators. CryptoKitties represent not only a collector’s item, but also some gameplay moments. For example, having two CryptoKitties allows you to breed them. Though the trading volume lags behind the previous two tokens and is only about a third of a billion dollars, their value remains quite stable and the growth of prices on the platforms suggests that this NFT collection has a good investment potential in 2022.
Conclusion
Investing in collectible NFTs requires some knowledge of the art and the ability to anticipate crowd behavior. It is never reliably known which of the next projects will be able to “take a shot.” However, if you use already proven collections, the chance of losing your money is greatly reduced. Next time let’s look at gaming NFTs, which you can not only buy, but also make money while having fun.