NFTs or non-fungible tokens have taken over the world by storm. In 2022, the world saw a massive surge of types of NFTs dropping almost every month. Within the NFT industry, many artists and creators are exploring digital content. We have divided these NFTs into types to make it easier for you to categorize and differentiate when buying one. Here’s everything you need to know:
NFTs are digital collectibles that exist on blockchain technology with proof of ownership to the buyer. Instead of just being JPEG images, NFTs are authentic pieces of digital assets that hold monetary value. These don’t have to necessarily be JPEGs, they can also be real-life things that are tokenized.
Since NFTs are a new technology, developers are exploring the infinite utilities it has. Some of the creations dropped in 2022 were quite new and unique, making people wonder what type of NFT category they fall in.
To answer this question, we have simplified it to make categorizing NFTs easier for collectors and investors.
Types of NFTs
As a collector, it is essential to know what kind of NFT you are buying; else it can be quite confusing. Sometimes you might not even realize its worth due to the difference in rarities or properties, which you can also find out by using the NFTStudio24 Rarity Ranking tool.
Here are 13 types of NFTs that you should know about:
- A vatars & PFP NFTs
- 1/1 artwork NFTs
- NFT Domain names
- Music NFTs
- Generative art NFTs
- Phygital NFTs
- Gaming NFTs
- Tokenized NFTs
- Meme NFTs
- Video/Clips NFTs
- Photograph NFTs
- NFT Tickets
- NFT Trading Cards
1. Avatars & PFP NFTs
Avatars and PFP NFTs are the most popular types of NFTs in the marketplace. All the Twitter PFPs or Instagram display pictures you see on social media are these NFTs and they have become part of people’s identity in the virtual world.
Although these types of NFTs are only meant to be images, now they are turning into 3D avatars for the metaverse. In other words, besides being the PFP avatars, they are also turning into avatars in virtual worlds such as The Sandbox playable avatars. This is one of the biggest utilities that draw people to invest money in PFP NFT collections.
2. 1/1 NFT artwork
1/1 NFT artworks are the most expensive types of NFTs since they are the only one in the world. Compared to PFP NFTs or other NFT collections, these artworks are made one and only one person can own these at a certain time.
The biggest example of 1/1 NFT is Everydays: The First 5000 Days by Beeple; the most expensive NFT in the world, sold for $69.3M. After Beeple, XCOPY and PAK are the best-selling artists in 1/1 NFT artworks.
These artworks are usually sold via an auction, and people participate in the bidding online on the NFT marketplace.
3. NFT Domain names
This year, Domain names have become the best-selling NFTs on the marketplace. In fact, based on recent data, the ENS or Ethereum Name Service NFT domain names crossed the trading volume of Bored Ape Yacht Club on OpenSea.
NFT Domain names are basically simple names converted from the machine-readable address in a blockchain network, e.g., apple.eth, john.nft, ruby.crypto, etc.
Since only one domain name can exist on a blockchain, people who buy these domain names have ownership of their digital identity in Web3; therefore, they are also a type of NFTs.
Paradigm.eth is the most expensive NFT domain name to be sold on the marketplace for 420 ETH, which is around $1.5M. The most popular domain name services are Ethereum Name Service (ENS), Unstoppable Domains, and Tron Web3 Domains.
4. Music NFTs
Music NFTs are not JPEGs; instead, they are digital audio files minted as NFTs, giving people the opportunity to own music tracks. Since blockchain technology eliminates third-party involvement, many artists have found music NFTs to be more profitable than streaming sites.
The concept of these types of NFTs was first introduced by Kings of Leon, a rock band, that released an LP “When You See Yourself” as NFT on the YellowHeart platform in 2021. The band recorded 820 ETH, around $1.45M in NFT sales, making it a huge success.
After that, many famous musicians released music NFTs including Snoop Dogg, 3LAU, Steve Aoki, and many more. OneOf is the most popular Music NFT marketplace for artists.
Recently, Muse dropped a chart-eligible NFT album called Will of the People for the first time in history. The tracks were available for streaming on regular sites but were minted as NFTs on the Serenade marketplace that people could own as mp3s.
5. Generative art NFTs
Generative art NFTs are computer code-generated art forms, usually dropped as a collection, each NFT having a unique trait. The artists utilize artificial intelligence (AI), codes, algorithms, and other engineered techniques on computers to generate distinct pieces of artwork.
Many small artists have emerged in the mainstream due to their generative art such as Dmitri Cherniak’s Ringers collection. The artist used automation and his artistic abilities to create this type of NFT collection.
Generative art NFTs tend to be expensive if the artist has a big name, but many small artists create masterpieces using computer codes that are worth your investment as a collector. You can visit the NFT marketplaces such as fxhash, Braindrops, Art Blocks, and Autoglyphs to buy these types of NFTs.
6. Phygital NFTs
Phygital NFTs are types of NFTs that combine physical and digital collectibles of the same item. For the past year, phygital NFTs have risen in popularity as they provide utility both in the real world and online.
Ever since the bear market, people have been judging NFTs based on what utility they can give to the collectors. As a result, many NFT brands are expanding beyond digital by adding a physical element to establish their authenticity.
RTFKT is the pioneering NFT brand that has introduced this concept. Nike released RTFKT-created shoes NFTs that could be redeemed for IRL limited edition shoes. Similarly, the brand recently dropped the Phygital Fashion collection for all CloneX avatars and their holders.
Tiffany & Co. made headlines when the brand launched a CryptoPunks Pendant NFT collection featuring 250 custom-made pendants redeemable by CryptoPunk NFT holders only.
7. Gaming NFTs
Like digital art, the gaming industry is also one of the biggest industries in the blockchain world. Gaming NFTs are types of NFTs that exist in blockchain-based play-to-earn or play-and-earn gaming platforms such as Axie Infinity, Gods Unchained, The Sandbox, and Decentraland.
Unlike regular games where assets are solely owned by the game developers, blockchain technology allows players to own in-game digital assets.
These digital assets can be skins, accessories, characters, virtual lands, buildings, etc. Players can buy, sell, and trade Gaming NFTs on secondary marketplaces.
For example, Axie Infinity, the biggest gaming platform in the world, features characters and items that players can buy on the marketplace and own forever in their wallets. In fact, the game requires users to own at least 3 Axies to enter the gaming platform.
The Sandbox is another game that utilizes NFT technology enabling creators to monetize their creations within the game. The creators can create digital items such as clothes, accessories, tools, cars, etc., and sell them as NFTs on the marketplace to earn money.
8. Tokenized NFTs
Tokenized NFTs are the types of NFTs in which real-life assets can be turned into digital data stored on the blockchain. Instead of minting a digital version, the physical assets are tokenized and then minted as NFTs on the marketplace. However, the legal rights of ownership are held by the organization or museum.
There is still much confusion as to whether tokenized NFTs should be called NFTs or not. After all, these paintings are only owned by individuals in the blockchain world; in the real world, the government or the organization owns them legally. Nonetheless, the aspect of owning digitally comes under non-fungible tokens as well.
Art Tokenization is a newly emerging NFT type that is a solution to historical artworks that are slowly fading or damaging. For decades, many paintings have been stored in special places and never revealed to the world in order to preserve them for a lifetime.
But then, what’s the point of keeping a painting if the world can’t see it? With the Tokenization of paintings, users can see and own them in digital form without damaging the original piece.
Many museums are working on launching tokenized NFTs as a source of income to fund their expenses. For example, Fillette au béret by Pabalo Picasso, Madonna Litta by Leonardo da Vinci, Judith by Giorgione, Composition VI by Wassily Kandinsky, and Corner of the Garden at Montgeron by Claude Monet.
9. Meme NFTs
Last year, Meme NFTs became a popular type of NFT that sold for millions of dollars on the marketplace. Memes that circulated on the internet for decades are now turning into non-fungible tokens so that people can have ownership over their creations and monetize them if they want to.
For many years, brands have been using memes for commercial purposes without giving any profit to the creators. For the Nyan Cat creator, this was a big concern that led him to mint Nyan Cat as an NFT.
These types of NFTs have become a livelihood for many owners. For example, the Disaster Girl NFT meme sold for $500,000 and helped the owner Zoe Roth fund her college studies.
To know more about NFT memes of 2022, check out our article.
10. Video/Clips NFTs
Video/Clips NFTs are digital video files of legendary moments captured somewhere in history that hold value to people; they can be in sports, politics, social events, concerts, etc.
NBA Top Shot is an example of these types of NFTs. NBA Top Shot is a basketball marketplace where all legendary moments in basketball are sold as NFTs. People can buy, sell, and trade video NFTs of moments of their favorite players.
Many YouTube clips that are quite popular on the internet turned into NFTs by the owners like Leave Britney Alone, Charlie Bit My Finger, etc.
For small content creators, this is a good way to monetize creations and earn an income without any third-party involvement. Additionally, it also allows fans and collectors to own their favorite moments and keep them to themselves if they want to.
11. Photograph NFTs
Photograph NFTs are also gaining a lot of interest from the NFT community in 2022 and are expected to grow in popularity as more and more photographers enter the space.
For many years, photographers have struggled to earn a passive income from their captured photos. Although there are platforms that sell photographs, the commissions take most of the money, leaving photographers with bare minimum earnings.
Photograph NFTs are the type of NFTs that allows photographers to sell their captured images for the rightful price. Additionally, it is also a great way for people who own old photographs of historical moments to monetize and earn a living.
Keepers of the Inn by Julie Pacino, Until We Disappear by Chris Cornell x Randall Slavin, Love Is War by Aimos, Twin Flames by Justin Aversano, and photo collection by J.N. Silva are some of the best photograph NFTs on the marketplace.
12. NFT Tickets
Another type of NFT that has become quite common in the blockchain space is the NFT Tickets NFTs.
These types of NFTs are usually sold at international conferences, events, concerts, and special gatherings to verify people’s identities using a QR code or barcode information stored in the blockchain before entering any event. This not only ensures that a limited number of people enter but also for collectors to remember the moment forever.
Recently, Coachella introduced Coachella Collectible NFTs lifetime passes and digital collectibles for holders. Similarly, MetaCon 2022 also requires users to buy NFT tickets that come with unique artwork.
Although NFT tickets aren’t common they will rise in popularity once brands, events, and celebrities realize their utility.
13. NFT Trading Cards
Remember the Pokemon trading cards in the early 2000s? Well now, you can own those cards in digital form. Like physical trading cards, the demand for NFT trading cards is also very popular in the market. People have spent thousands of dollars to buy rare trading cards that not only hold value but also give utility to the holders.
In other words, NFT trading cards give benefits to holders such as access to private communities, events, or social gatherings, something that physical cards cannot provide.
Each NFT trading card has unique rarity traits that make them rare, uncommon, or common, and their value is also determined based on that.
Additionally, there are trading card games as well. The most popular game, Gods Unchained, requires trading cards featuring power levels and other characteristics that players need to stake to fight against other players. It is a unique yet new way of exploring the utility of NFT trading cards.
As many experts say, NFT has infinite possibilities that artists and creators can explore as they see fit. The above-mentioned types of NFTs are the latest trends of 2022 only, and as years pass by, there might be more types coming out.
For collectors, now that you know the types of NFTs, you can easily differentiate between NFTs before you buy from a marketplace.