After having shaken up the world of art, video games, sports, and even luxury, Non-Fungible Tokens (NFT) have been invading the world of Music NFTs for several months. Gorillaz, The Weekend or Booba, more and more artists are surfing on the NFT trend.
Why such a craze around NFTs? And besides, what is an NFT for? How are NFTs used in the music industry? And will they really revolutionize the sector? This is what we invite you to discover!
Before going any further, let’s pause for a moment on what an NFT is . Appeared in 2015, the acronym NFT literally means “Non-Fungible Tokens” . It is a form of cryptocurrency that allows the purchase or sale of any digital asset , for example a work of art, an image, a video, a tweet etc.
This virtual token is said to be “non-fungible” because it is unique and cannot be reproduced thanks to its “Blockchain” technology which will secure and trace each transaction. This means that when you purchase an Discord NFT, you are the sole owner of that digital asset. And it is therefore this uniqueness that has created so much enthusiasm around NFTs.
- What is the magnitude of this new phenomenon?
Since January 2021, the NFT market has been booming. According to the latest report published by Dapp Radar, NFT sales would have exceeded $10 billion in the third quarter of 2021. This is eight times more than the previous quarter.
- And in the music industry?
According to a study by American journalist Cherie Hu, there has been an explosion of NFT sales in music since February 2021. These sales are estimated at more than 60 million dollars between June 2020 and April 2021, of which 55 million of sales were made between February and April 2021. Sales are mainly represented by electronic music (80% of sales), followed by far by hip -hop (8.6%) and rock (6.7%).