One of the most common questions about NFTs is simple: Just how the hell do you actually use them? You might assume that NFTs give artists the chance to promote their creations in an entirely new way. Maybe you believe that NFTs will be crucial as the metaverse becomes increasingly popular. Perhaps you think that NFTs are just collectibles in the digital world – much like a baseball card or a stamp collection. The truth is that most people are using NFTs for one specific purpose, and this is a trend you need to be aware of if you’re thinking of investing in them.
Most People are Using NFTs for Avatars
According to a recent article published by Bloomberg, the vast majority of people are using NFTs as avatars. In fact, profile pictures make up nearly 50% of the total value of these non-fungible tokens. Video game NFTs are the runners up, accounting for just under 20% of total NFT values. Metaverse NFTs account for a miniscule 2.5% of the total value, while art NFTs account for just over 8%.
These numbers might seem surprising, especially when you consider the fact that the metaverse has been the subject of so much hype lately. Many of us were also under the impression that NFTs represented a new form of media for artists, but the numbers don’t lie – most investors are not interested in the artistic value of these tokens.
With all that said, the NFT market as a whole is still relatively small, and it accounts for just 1% of the entire crypto market.
Why Are NFT Profile Pics So Popular?
So why are PFP NFTs so popular? First of all, investors have the chance to actually use their NFTs for something. Utility is one of the key features of any successful product, and it shouldn’t really come as a huge surprise that the most functional versions of NFTs are proving to be more expensive and popular than their counterparts. In fact, you might even argue that a profile pic NFT has more functionality than “traditional” cryptocurrency.
Secondly, we have to consider the priorities of modern users. Social media is all about status, plain and simple. When most people buy an NFT, they don’t want to keep it to themselves. They want to tell the entire world that they’re part of a growing trend. Replacing a normal profile pic with an NFT is an obvious way to do this. NFT profile pictures are quickly becoming the latest “must-have” status symbol.
Don’t Count the Metaverse Out Just Yet
Although metaverse NFTs make up for just 2.5% of the total market value, this could change rapidly within the next few years. As the metaverse begins to take center stage, NFT avatars designed for this new world could become much more popular. For example, you might appear in the metaverse as one of the Bored Ape characters – and no one would have the ability to copy your appearance.