Long live The Dynamic NFT

Hardly more than eighteen months have passed since the heady days of JPEGs-as-NFTs selling faster than hot dogs on a New York street corner in the height of summer. Throughout 2021, ecstatic cries of “Wagmi!” floated down the gold-plated NFT Twitter streets like Ethereum-plated confetti.

The heady and hectic days of NFT buying frenzy have now been flooded with a cold ice bucket of crypto winter. The ongoing crypto crash, more like a market correction, appears to have been triggered by pushing boundaries within the industry, as well as overuse of leverage. In the past, top NFT projects like Cryptopunks have generated over $23 million for a single NFT, giving rise to legitimate concerns about a bubble or an artificial market.

It would seem natural then, under these circumstances, that everyone would imagine that they might just have a shot at hitting the big time in the NFT world.

In mid-April 2022, investors, NFT enthusiasts, watchers, and direct Degens cheered Moonbird’s $280 million two-day launch. Moonbirds’ parent company Proof Collective went on to trade around $300 million in NFT volume in just four days, with one bird selling for $1 million seven days later.

Crypto meltdown

Shortly after, Bitcoin plunged 70% and a massive Crypto meltdown began. Although this appeared to be unexpected, it can be seen as a natural course correction for an inflated and overextended market, a narrowing to a more realistic playing field, where the average investor might hope to get involved, and not just crypto and NFT whales .

NFT sales volume on OpenSea has fallen by 75% since July 2021, and industry activity on Twitter and other social platforms has slowed significantly. So, what is the future of NFTs? Is it over? Has the sky fallen?

Is it the end?

The short answer is no, it’s not over and the sky hasn’t fallen. The next step in the development of NFTs is just getting started. Unlike traditional NFTs which in the past had a reputation for bringing more and more fraud and garbage, the next generation of NFTs – the genre of dynamic NFTs, also known as live NFTs – is evolving. To increase engagement, be collaborative, and ensure a floor, dynamic NFTs can constantly change, stay up-to-date, and provide a reason for users to want to keep them, collaborate on them, and acquire them.

There are many potential uses for dynamic NFTs and we will see them being integrated into the web3 world due to their potential. For example, let’s take a look at documentation. Imagine if a deed to a house was a dynamic NFT. With every change to the house, such as renovations, new rooms, improved heating, etc., the deed can reflect them and the value can be constantly updated. Nothing can be hidden and document ownership can be traced on the blockchain. And it goes even further with wallets, NFT tickets, move-to-earn apps, games and of course the artistic side where dynamic NFTs offer a whole new artistic method.

Long live the dynamic NFT

OthersideMeta by Yuga Labs

Credit: OthersideMeta

There is a very real potential for dynamic NFTs to claim a stake in art history, as the next natural stage in the evolution of digital artistic practice. Likewise, the link made between contemporary art and NFTs here enables crypto-natives to gain insight into traditional art collecting and history—all of which contextualizes dynamic NFT projects in the larger scheme of creative human history.

For example, OthersideMeta by Yuga Labs almost broke the Ethereum blockchain on mint day for its high claims. Another long-awaited dynamic NFT collection, Life in Our Minds, has been deeply engaged in scientific research devoted to the psychology and behavior of both humans and birds. Now the project created by Random International and Danil Krivoruchko, produced by Pace Verso and Snark.art for the OG.Art platform enters its second phase through the unveiling of Mother Flock, a generative virtual sculpture, which will be Christie’s 3.0 sale top plot.

Random International and Danil Krivoruchko, Life in Our Minds, 2022 © Pace Verso and Snark.art

Source: Pace Gallery

Confirming the claim that dynamic NFT technology opens the new era of NFTs, we see that big brands continue to invest in such projects. The NBA, not new to the NFT world, has launched NBAxNFT, official web3 home of the NBA, a collection of 30 thousand NFTs created during the 2022 NBA Playoffs. Each card is a dynamic NFT that changes its appearance influenced by the team’s and the players’ performances on the field.

With that in mind, let’s enjoy the moment of transition – from a congested scum NFT market to stylish, highly innovative and art-related dynamic NFT projects. Wagmi.