NBA Top Shot, CryptoPunks And More: What You Need To Know About NFTs

NFTs, or Non-Fungible Tokens, are unique tokens on the internet that have been rapidly increasing in value and popularity.

For starters, NFTs are tokens that represent something special, such as a virtual kitten or a certain dunk in the NBA, that are verified and inimitable.

Typically traded on the blockchain, NFTs are enabling monetization for virtual collectables. One of the most popular NFTs today is CryptoPunks, created by Larva Labs.

Non-Fungible Tokens Rise In Value: On Feb. 15, the total value of all sales on CryptoPunks was $50 million. One week later, that amount has doubled to $100 million, with single punks selling for over $1 million.

Entrepreneur Gary Vaynerchuk, along with other personalities on twitter and discord, are partially responsible for the jump in demand for NFTs.

I’m not sure I can have a normal business week .. when all I want to do is study #nft

— Gary Vaynerchuk (@garyvee) February 22, 2021

Dapper Labs also has skin in the NFT game. After originally creating the viral CryptoKitties Dapper Labs has now created NBA Top Shot, which was covered by Benzinga on Friday here.

Four days later, the floor on a series one “moment” has increased from less than $20 by over 500% to $120.

As more and more NBA players want to get their hands on their moments, the more legitimate Top Shot becomes, and this is just the beginning.

What's Next For NFTs: On Sunday, Forbes, Bleacher Report and Barstool all published media around NBA Top Shot, dramatically spreading the NFT craze, generating more value for these virtual tokens as demand rises.

As NFTs are currently valued at an all time high, it is impossible to estimate year-end value. 

The potential of NFTs is in consumer demand, and as these virtual tokens become more and more mainstream, those who purchased them early will be celebrating.

Photo courtesy of CryptoKitties.