How is utility driving NFT value?

The NFT market has experienced explosive growth in recent years reaching its peak during the last crypto bull run of 2021. With an an average spend of $150 per person, by August 2021 the NFT market was worth some $40 billion.

Since then however, the story has been rather different. With a current market cap of just $1.6 billion it is clear that many people have lost faith in the concept.

Such a drastic market decline has of course has left many investors licking their wounds and counting their losses. However, within every crisis lies an opportunity for revitalization, and perhaps this is a chance to learn from past mistakes.

Despite the lack of hype, the fundamental nature of the NFT remains the same. At its core an NFT is a certificate of ownership which determines both the authenticity and scarcity of a digital item.

‘In our progressively technology-driven society, the future is poised to demonstrate the true value of NFTs in their capacity to establish ownership amidst a landscape riddled with counterfeit entities and fraudulent activity.’

And so, a far cry from the days of $1 million JPEGs, utility will be the driving force for the next NFT bull market.

Epoch defining

As we have discussed previously, the gaming industry is currently undergoing a epoch defining transformation through the introduction of real world value.

This ‘gamification’ of the industry is leading to greater demand for in-game purchases and is creating significant online economies where digital items are bought and sold as NFTs.

Such in-game utility serves as a prime example of the investment potential within the NFT market as we progress through the decade. Consequently, the narrative surrounding the NFT market is gradually shifting from speculation to an investment with a significant use case.

By 2027, the projected global valuation of the NFT market is expected to reach some $3.2 billion. However, it must be understood that this conservative estimate has been created using current exchange rates together with the ongoing conflict in Ukraine significantly affecting forecasts.

‘NFT Sharing’

Here at Project Lambo we have created a handful of scarce and sought after gaming NFTs which have not only created a buzz throughout the digital art world but also feature as a core component of our gameplay.

Such utility ensures demand for our NFTs remains high. Furthermore, our unique ‘NFT Sharing’ concept enables both game players and investors to collaboratively contribute to the increased value of NFTs in a supportive manner. Of course, holders also have the opportunity to resell their digital goods on NFT marketplace sites like OpenSea or Rarible.

As you can see, NFTs transcend the realm of expensive digital art. As we progress throughout this revolutionary decade, it is becoming increasingly apparent that ‘Utility NFTs’ will play a crucial role in the digital economy of the future.

With this in mind, it has never been a better time to invest, none more so than in the eternally popular world of online gaming.

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