Since the emergence of NFTs, blockchains and cryptocurrencies have become another sector for their sustainable growth.
During the recent drops in the prices of almost every other cryptocurrency within the entire crypto market, non fungible tokens have their share of fate to deal with. In recent weeks, the digital art market has also witnessed similar dips in terms of trading price and volume that the digital assets market has seen.
Still, there resides a quite considerable excitement in the market around these digital assets, considering the involvement of high-profile artists. Investors have recently considered the non-fungible tokens nothing more than speculative artwork and assets with huge volatility.
This newer trend is moving towards the emergence of nonfungible tokens based on several utilities that have more use cases and are much more than traditional NFTs. This is why the new trend is shifting more attention to blockchains like Polygon (MATIC). MATIC token of Polygon network is among one of the top 20 cryptocurrencies in the world. Polygon (MATIC) has a total market capitalization of more than $5 billion.
ALSO READ – A16z Secures Massive Funds To Grab Opportunities From Bear Market
In simpler terms, utility-based NFTs have creative assets like actual pieces of art underlying them and extra benefits, rewards, and opportunities. That means any user with a certain NFT could gain entry into a VIP club because of holding the asset. This is how the NFT would be eligible to verify instantly through the blockchain. But there is a more interesting part where a user can enjoy the perks of smart contracts enabled in his own NFT. The NFT having smart contracts, for instance, could have features that every holder of the underlying creative asset would also get a share in revenue opportunities in the future.
Due to blockchain technology, it’s possible that artists can release new music albums in the form of NFTs. Many popular artists like Snoop Dogg, DJ Steve Aoki, and Kings of Leon have done this using NFTs. The Chainsmokers, a famous EDM pop duo, recently released their new music album as an NFT. The NFT has several features like you would get early access to tickets to their concerts, their merchandise for free, and entry to the members-only events.
This was not it; additionally, the smart contract within the NFT would allow their fans to earn a portion of their overall streaming royalties in a small percentage. Every time someone streams their song from the album, the buyer of NFT would get a chance to get an upside of the album.
Source: https://www.thecoinrepublic.com/2022/05/27/how-could-a-rebound-in-the-nft-market-help-polygon-network-and-its-cryptocurrency/