How the decline in the crypto market presents a chance for novel NFT types to emerge
By Fernanda De La Torre
Crypto markets down, new wave of NFTs to rise?
Traditional and blockchain markets have taken a collective hit in the last few months. Bitcoin dropped by almost 38% in the last month.¹ Ethereum was down 77% over the last couple of weeks, hovering around $1,200 as opposed to its all-time high of $4,892.² The NFT market, which relies primarily on the Ethereum network and the Ether cryptocurrency has also dropped down to record lows. NFT sales reached just over $1 billion in June, compared with the peak of $12.6 billion in January.³
Despite the dip, NFTs are still a billion-dollar market. Their initial rise to fame introduced the concepts of digital ownership and online presence through blockchain technology in a way that was familiar to those outside of the crypto-sphere.
Every day new headlines appeared covering record-breaking NFT sales like Beeple’s $69 million-dollar NFT. Familiar brands entered the market with Adidas selling more than $22 million in NFTs⁴, and the world was introduced to the social media craze that is PFP NFTs which included CryptoPunks and Bored Ape Yacht Club NFTs which have sold as high as $2.8 million.⁵
Athletes, celebrities, and brands continue to jump in to get a piece of the action. The dilemma? Many of these headlining NFTs sell for thousands, if not millions of dollars leaving out the masses.
On top of that, while the idea of a digital collectible made sense without a complete understanding of how blockchains work, there were still hurdles to purchase or claim these NFTs. In order to participate on a traditional NFT platform you must:
1. Open a crypto wallet like MetaMask
2. Go to another cryptocurrency exchange to purchase crypto like Ether
3. Transfer the Ether to your crypto wallet
4. Connect your crypto wallet to the NFT platform
5. Buy the NFT and pay gas fees regardless of whether a bid is accepted.
Fans used to a seamless web 2.0 experience can be easily lost or discouraged trying to navigate this space.
A new wave of NFTs
With the first NFT frenzy slowing down, we believe room will be made for more accessible NFTs focused on utility, fan engagement, and dynamic experiences. For example, Ticket NFTs that give holders access to exclusive events such as concerts, museums, livestreams, and so on. NFTs that not only act as a commemorative moment but that also serve as an access pass to a virtual meet and greet to give fans the opportunity to connect further with their favorite public figure.
This new wave of NFTs has already started to be implemented by major brands. Recently Coachella released a collection of ten NFTs that granted holders lifetime access to their annual festival as well as any other virtual experiences they may offer in the future. Nike has also started to include NFTs with the purchase of limited-edition sneakers.
Upstream has been working on new innovative ways to add utility to NFTs. One of those new ways is by creating proof of authenticity NFTs. Our recent partnership with Ruffnation Entertainment, the pioneering hip-hop label that discovered Cypress Hill, Nas, the Fugees, Lauryn Hill, and other major hip-hop artists, will give vinyl records authentication and immutable ownership through the NFT attached to it.
NFTs for all
Over the last few weeks, we’ve welcomed groups like NBA Hall of Famer Dominique Wilkins, NFL Hall of Famer Edgerrin James, Antrel Rolle, BRON Studios, Ruffnation Entertainment, and more into Upstream’s ecosystem. We’re building a community of NFTs that’s accessible to the masses and is easy to use. Unlike the traditional NFT platform steps listed above, all you need to do to participate on Upstream is:
- Download: Simply download Upstream and tap Sign Up
- Fund your account: Tap Investor, Fund My Account, tap your desired funding method (PayPal, Credit, Debit)
- Purchase NFT: Tap Market > Tap NFT in top navigation section > Tap desired NFT > Enter Bid Amount > Buy Now
- Hold or trade NFT: Fans will receive a push notification & the NFT will be added to their portfolio to hold or trade with their fans
We have truly simplified the process of participating in the NFT market and have remained carbon neutral thanks to our own solar field, which mines all the ETH used for our Ethereum layer-2 rollups. Upstream is committed to making the market more inclusive by offering low-cost NFTs that bring fans closer to their favorite athletes and celebrities.
Keep up with our upcoming opportunities by following us on all our social media platforms and by joining our discord that’s linked below:
Sources
1 CoinDesk | 2 Fool | 3 The Guardian|4 The Verge| 5 Crypto Briefing