Doesn't NFT Music have time to do some research?

When people think of non-fungible tokens (NFTs), they often think of the most popular devices like CryptoPunks, Bored Ape Yacht Club, and Decentraland. People will think Beeple sold millions of dollars for digital art, and the game and Metaverse led to a recent drama season.

However, there is one special type of record that doesn't get a lot of attention, and that is NFT music. By 2021, NFT revenues in other industries will reach millions of dollars, and NFT revenues are expected to decline.

According to a recent report from the Cointelegraph Research Institute, global awareness of NFT has improved over time. This can be proven by the fact that the Google search volume for the word "NFT" continues.

However, two studies studied in the report show that many people still don't know anything about these tokens. More importantly, many people who use cryptocurrencies for trading have no previous experience with NFTs. In one study, 57% of people said they had never used NFT before, and only 3% used it daily. These data show that the market is in its infancy.

NFT Music vs. streaming service

Like NFT Artwork, NFT Music was seen as a new way for artists to connect with their fans and earn money from their work. They hold the proven concept of membership as the key to building a fan base. Tokenization of artist works makes it transformable and offers an alternative way to earn money for artists and fans. King of Leon are the first group to release an NFT music album, which grossed around $ 2 million and is one of the best NFT music genres.

NFT music also gives artists a better choice. Music NFT, for example, gives fans direct access to the artist's music without the streaming media giants and record labels known to slash artist profits. However, for most music lovers, especially those who are not in the cryptocurrency space, the $ 9.99 value offered by streaming services remains a very reasonable price, especially considering the price of oil. of Ethereum Time. When it comes to music streaming, Spotify is the platform of choice for 32% of streaming media users globally. Apple Music received second place with 16% share.

NFTs can be used to generate additional income for artists who still depend on these platforms, and some artists have been able to generate income from the NFT series. An example is 3, which is "Ultraviolet Collection" generated $ 11.6 million in sales. Considered by Spotify listeners, 3lau's NFT is the most profitable. Spotify has 2.5 million listeners and a total sale of $ 4.64 per fan. On the other hand, A $ AP Rocky's "Rocky Gateway" was not as successful as it sold for only $ 200,000. A $ AP Rocky has 17 million Spotify subscribers. This means that the sales of this NFT are equivalent to $ 0.01 per fan.

The above data shows the performance of the NFT series compared to Spotify's fan base, but does not show how low the eyes of NFT music really are. Check out the top 10 music NFTs from OpenSea. From November 14 to December 13, sales were only 223 ETH (around US $ 835,000 at the time of writing), which is 0.03% off the OpenSea 30-day sale. The top ten series in the music category generated total revenues of 6,396 ETH (US $ 24 million), while monthly sales at the Bored Ape Yacht Club exceeded 42,956 ETH (US $ 161 million). .

Loyalty model

Small sales of OpenSea can mean one of two things: Although the use of this data is not yet complete, or NFT is not a medium for music. However, platforms that provide value to fans can help Music N FT perform better. Already in August, 3Lau announced a new blockchain-based music platform, Royal. The platform raised $ 16 million in seed capital from investors such as Paradigm and Peter Thiel. Royal allows music owners to the NFT version, allowing fans to participate in performances by their favorite artists.

The introduction of the distribution panel model is based on the most user-friendly NFTs. A survey conducted as part of the Cointelegraph research shows that more users are purchasing NFTs for commercial purposes. This similar play and earning model has led to significant growth for the sports and gaming industry as Axie Infinity grows here. In addition to financial support, Royal can pave the way for the emergence of other models. This means that fans can pay full price for the song's new artist.