NFT avatar is a digital version of a photo created by a special algorithm or bought on one of the marketplaces. Community-driven, unique and individual, applied in the Metaverse. Below we will consider what are the features of NFT avatars, what they are used for, how to create them, and what is the reason for their popularity. Here are some examples of the best digital pictures for 2022.
What is an NFT Avatar
Recently, the NFT market has been actively developing, and the technology and the concept itself are in increasing demand. Unique tools in the form of Crypto Punks, Beeple and others are sold for tens of millions of dollars. The popularity has led to the emergence of NFT tokens and new projects that allow you to collect your own collections. To make a profit, you need to understand what NFT avatars are and what distinguishes them from other market tools.
In simple terms, an NFT avatar is a portrait of a character created using a special algorithm. It may look like cartoon or pixel characters. It represents the upper part from the crown of the head to the shoulders and has the appearance of a portrait. The use of special technology allows you to create a unique hero, which differs in the following parameters:
- facial features;
- outerwear and footwear;
- accessories and more.
NFT avatars can be people, creatures, or non-existent fantasy characters. The control function falls on the community, which has the right to develop new features and use the image within the metaverse. Given the demand, such pictures will be in demand for a long time, and a large selection is available to collectors for purchase.
Why are NFT avatars so popular?
The high demand for NFT avatars is somewhat reminiscent of the ICOs that gained popularity in 2017 and 2018. During that period, several new tokens appeared almost daily, and buyers invested money in them, counting on a rapid increase in the rate and income.
The surge in popularity of NFT avatars has a similar base, driven by the availability of capital from large investors and collectors, as well as the promotion of technology in social networks. In addition, more and more people began to change the classic account photos for more interesting pixel/cartoon pictures.
The rapid growth came in 2021, when tens of millions of dollars worth of token sales were made in the NFT avatars market. The surge in demand for the technology has driven up the price of Ethereum gas and created thousands of new collectors. Today, despite the increase in the number of proposals, the market remains highly specialized. Many rare NFT avatars are becoming more expensive, which allows investors to make good money.
TOP 10 reasons for the popularity of NFT images
In total, 10 reasons for the popularity of NFT avatars stand out:
- Increasing investment in such projects and increasing the number of private investors with the financial ability to buy.
- The race for individuality among users, which is a natural stimulant of increased demand. Many owners of NFT avatars brag about them on social networks and in this way attract new investors.
- Technology versatility. Available NFTs can be used in various fields: music, art, video, game items, etc.
- Creation of own communities / clubs in which people of the same interests unite. To get into them, you must have your own avatar. The participation of such groups contributes to the spirit of unity, increases the reach and value of the instrument.
- Growth of the collector’s status. For example, owning one of the Crypto Punks NFT cards indicates good taste, financial well-being and investment prospects. A person with such an avatar automatically receives a high status in the community.
- Opportunity to earn income from buying and selling. The total number of NFT avatars is limited, which leads to an increase in demand and, accordingly, prices. If the value of any of the pictures in the collection rises, other items follow. There are many cases on the Internet where buyers of NFT avatars made millions of dollars on a single transaction.
- Ownership. The purchased NFT is unique and inimitable. It can be copied and pasted anywhere, but only the owner is the sole owner.
- Advanced functionality that is not limited to visual brightness. Many projects offer a number of additional features: farming, royalties, updates, availability in the game, etc.
- An opportunity to perpetuate the name and inscribe it in the history of the NFT. For example, smart contracts allow owners of non-fungible tokens to give them a name and thus enter personal data into the blockchain chain. An alternative option is to buy a unique token. Information about its owner will quickly disperse on the network, and the investor himself will receive long-awaited popularity.
- Great prospects. The direction of NFT avatars is likely to develop, and collections will increase in price. In the coming years, this will not only increase the cost, but also add new features for owners.
The demand and cost of NFT tokens is a dynamic parameter that depends on the uniqueness and originality of the asset. Many users of non-fungible tokens consider this area as one of the best ways to invest.
What are NFT avatars for?
It may seem to a novice investor that NFT avatars are useless pixel/cartoon pictures that have only an aesthetic and, possibly, investment function. This is not the case, because visual and structural uniqueness allows non-fungible tokens to be used for other purposes. The holder of such a tool receives a number of additional features:
- Collection of money . Many companies use NFT technology to attract donors and additional funds. They create digital avatars, put them up for auction and sell them. The funds received go to the implementation of any charitable goals or the implementation of certain projects.
- Ownership of commercial rights . The high demand for NFTs is largely driven by the technology’s ability to establish ownership and originality. NTF tokens are increasingly used by representatives of the arts who want to secure authorship.
- Use in games . There are many cryptocurrency games where you can use non-fungible tokens when creating collectibles / items. Players are the owners of items, own them and trade in special markets in virtual worlds.
- Application in the gambling industry . Many games use the capabilities of NFT technology. An example is Gambling Ages, in which fans of gambling collections received up to 7777 such images. Owners of pictures are allowed to parties, contests and other events.
To this list, you can add the reasons for popularity discussed above. NFT avatars are used to earn money, increase status, participate in communities, etc.
Trends in the NFT Avatar Market
The development of a new direction and investments in this area allow us to highlight a number of trends that are typical for 2022. The main ones should include:
- Increasing the number of pictures that can be bought at a low cost. Interest is growing among newcomers who have bought NFT tokens for the first time. Experienced investors know the market and can pick up promising projects.
- Search for NFT with a real price (the one that the developers are laying). Each non-fungible token has a certain amount of collateral with some liquidity. Investing in such projects allows you to earn in the future.
- Increasing the number of project functions. These are no longer just pictures, but a full-fledged ecosystem with ample opportunities. The presence of the latter motivates to create new worlds.
Examples of NFT avatars: TOP 7 collections by popularity
New collections appear on the NFT market almost daily. Many of them are well-known, and the pictures themselves are sold for millions of dollars. Let’s highlight a few examples:
- Bored Ape Yacht Club is one of the largest collections with over 10,000 items. More than 63,000 people own avatars, and the minimum cost of one NFT is 95 ETC. The total trading volume is 572 thousand Ethereum. The owners of such pictures receive a unique status and access to the “Bathroom”, where you can leave digital inscriptions on surfaces.
- Otherdeed for Otherside is a unique NFT collection designed to create your own metaverse. The minimum cost of a picture is 3.19 ETH, and the number of owners is 34.4 thousand people. The total number of items in the collection is 98,400, and the total trading volume is 273.3 thousand.
- Mutant Ape Yacht Club is another collection with over 19.2 thousand items. Avatars are owned by over 12.5 thousand people, and the minimum cost is 19.39 ETH. The total trading volume exceeds 400.7 thousand Ethereum.
- Milady Maker is a growing collection of 10,000 avatars with a minimum price of 1.15 ETH. The number of owners is about 1.9 thousand people, and the turnover is almost 7000 ETH.
- CryptoPunks is a large project and one of the first representatives of NFT avatars. Launched back in 2017 with 10,000 items. Today, this collection plays a leading role in the field of non-fungible tokens. She is featured in many places, including The New York Times, PBS News Hour, and more. The total trading volume is more than 908 thousand Ethereum, and the number of owners is 3.5 thousand people.
- Okay Bears are popular NFT avatars with 10,000 items. The total number of users is 10,000 people. The minimum price is 210 SOL, and the total turnover is 1.5 million SOL. All bears are individual and have some of their own characteristics.
- TBAC is a collection of ten items priced from 0.544 ETH. The total number of owners is 1.8 thousand people, and the total value of NFT tokens is 7.2 thousand ETH.
In addition to those discussed above, other NFT collections deserve attention. These include Clone X, Cardboard Citizens, Azuki and others. Of no less interest are Habbo Avatars, Cool Cats, The Meebits, etc. Many collections are being created right now and are available for purchase.
Where to get an NTF avatar
There are many ways to become the owner of an NFT avatar. It can be created or bought ready-made. Let’s consider different options.
How to create
Today, there are many sites on the web that provide the ability to create your own images in any of the available styles. Examples include the following projects:
- 8biticon.com . A popular service for creating NFT avatars in the form of squeaks. It has been working since 2012 and allows you to create your own collection. After logging into the site, a development tool is available, a large selection of design options, automatic creation of NFTs, integration with OpenSea, and many other options. To get your token, click on the “Create Now” button, specify gender, face type, clothes, mouth, hair, background and other options. After creating an avatar, the price is displayed. Payment can be made after linking the MetaMask wallet and replenishing your Ethereum account.
- nftavatarmaker.com . Another big project to get your own NFT avatars. A huge selection of combinations is available here to create individual pictures. Optionally, you can set individual features in the form of samurai masks, golden skin or other features. If desired, you can buy an individual set of character traits, and then combine them according to your own preferences. The project features allow you to create avatars in 3D and 2D.
How to buy
The next way to get an NFT avatar is to buy it. To do this, you can use any of the available marketplaces. The most popular include OpenSea, Rarible, Atomic Market and others.
For example, consider how to buy an NFT avatar on OpenSea. The general algorithm is as follows:
- Install MetaMask from the official website at metamask.io/download.html.
- Register with MetaMask.
- Log in to the main page of the opensea.io marketplace and create an account here by clicking on the wallet icon in the upper right.
- Select the account you want to connect.
- Specify the token to buy. It can be Ethereum, Polygon or Kleitn.
- Find the NFT avatar you are interested in that you want to buy on the site. Use the available filters to make your selection easier.
- Remember the cost of the picture and buy the required number of cryptocurrencies.
- After replenishing the balance, click on the “Buy Now” button.
In the future, you can use the purchased NFT avatar or keep it to earn money by selling it at a higher price.
Bottom line: is it worth investing in NFT-pictures
Investing in NFTs is a promising project from the point of view of generating income, which is relevant against the background of the general hype and increased demand. But do not forget about the risks associated with investing in such assets. As with cryptocurrencies, NFTs can drop in value due to loss of interest or other external factors. This type of investment can be considered only as one of the elements of the investment portfolio.
NTF pictures have no intrinsic value or reserves and are only interesting from the point of view of art. This means that the cost of such assets creates demand. After receiving the avatar, you will have to wait a while and try to sell the asset at a higher price.
In 2022, assets are in demand and continue to evolve in terms of features and applications. They are valued not only as elements of art, but also as a useful element of the ecosystem or a tool for obtaining some other opportunities. This nuance must be taken into account when choosing and investing.