The report said that these tokens are making changes to the crypto consumer stack.
Non-fungible tokens (NFTs) are becoming more important in business. In the beginning, they may have looked like speculative JPEG images, but now they are redefining the “crypto consumer stack” in terms of games, social, content, and commerce, brokerage and research firm Bernstein said in a report on Monday.
The early success and then decline of NFT activity can teach us many things, but the sector is still in its early stages of adoption, and the report said that NFTs are “how crypto would go mainstream and bring on users.”
NFTs are digital assets on a blockchain that represent ownership of virtual or real items and can be sold or traded.
Analysts Gautam Chhugani and Manas Agrawal wrote, “NFTS is not dead.” They pointed out that well-known collections like the Bored Ape still have a floor price of $100,000 and that the number of active monthly users on OpenSea is stable at about 360,000, even though it’s down about 35% from its high of around 550,000.
The real part of the “NFT revolution” is using these tokens as “Lego blocks” to build a fun game, the note said. It also said that crypto games are not a threat to the big gaming studios, but it is possible to build a new genre of NFT-powered games where players can earn and own in-game assets as NFTs.
Bernstein said that brands use NFTs to sell digital goods in exchange for real-world experiences. As the number of crypto users grows, every brand will need to build an NFT marketing strategy, and he pointed out that Nike (NKE) already makes about $180 million from NFTs.
The note said that the success of NFTs will now depend on how well they can deliver a real product, like gaming worlds, content, and merchandise. It also said that blockchain games shouldn’t try to compete with the big game studios, but instead should come up with new ways to play games that are unique to crypto.
The note also said that private investors will continue to put a lot of money into the NFT infrastructure stack.
