<p dir="ltr">NFTs emerged onto the scene in 2021, immediately amassing massive sales figures and establishing a presence in popular culture. According to Fortune, the total value of all NFT transactions globally will increase by a whopping 21,350% in 2021 to reach $17 billion. The massive increase in the market value of NFTs has prompted several discussions on their potential utility. As a result, the world saw the birth of utility NFT, which now offers users a plethora of benefits and curiosities. In order to bring readers closer to the NFT world, <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a> will provide all of the necessary information about utility NFTs.</p><h2>Explore utility NFTs</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed24f25956a216a8e6023f659fee92.jpg" alt="Explore utility NFTs" title="Explore utility NFTs" width="600" height="334" class="lykafe0"></p><h3>What are utility NFTs</h3><p dir="ltr"><strong>Utility NFTs</strong> are a broad class of NFTs that are not only known as unique digital assets but also give their owners access to privileges, rights, or prizes. The appearance of utility NFTs aims to diversify the use cases of NFT, which can closer approach to NFT’s clients and ensure they stick around for the long-term.</p><p dir="ltr">Utility NFTs perform in essentially the same way as standard NFTs. Particularly, it also has cryptographic security and is unique digital assets on a blockchain. Furthermore, the immutability and transparency features of blockchain technology can assist NFT owners in confirming the provenance of their NFTs. However, as mentioned above, utility NFTs also create unique values which holders wouldn't have found generally.</p><h3>Why do we need utility NFTs?</h3><p dir="ltr">NFT pricing is typically arbitrary, it leads to celebrities’ NFTs making more money than others. As a result, NFTs have to adapt in order to survive by having not only <a href="https://www.builder.news/crypto-insights/decode-the-intrinsic-values-of-nfts-UNJLg" alt="Decode the intrinsic values of NFTs" title="Decode the intrinsic values of NFTs" target="_blank" rel="" class="">already-known intrinsic values</a> but also the value and utility to NFTs with real-world applications. Adding utilities will also assist to democratize the process, narrowing the gap between celebs' NFTs and commoners on the metaverse.&nbsp;</p><h3>Highlight of utility NFTs</h3><p dir="ltr">Utilities provide a crucial layer to NFTs in that they may be utilized to make real-life transactions more frictionless. In different sectors, NFTs will have respectively distinct utilities. The sort of NFT that certain fashion firms intend to develop in the future will provide individuals with access to a unique range of fashion goods. In the meantime, NFT holders have access to tickets or seating areas that non-holders do not have. Instead of selling special tickets, <a href="https://www.builder.news/crypto-insights/nfts-an-accessibility-shortcut-to-sports-npLwE" alt="NFTs - An accessibility shortcut to sports" title="NFTs - An accessibility shortcut to sports" target="_blank" rel="" class="">a sports club may sell NFTs</a>, which would allow holders special access..</p><p dir="ltr">Besides, RiseAngle's RAM NFT is also a highly significant utility NFT that allows players to use the NFT collection for many utilities in the Metaverse. This is accessible through RAM, their new NFT release.</p><h2>Applications of utility NFTs</h2><p dir="ltr"><strong>Utility NFT</strong> applications also play a crucial role in deciding its future. Here are several significant areas that are progressively opening up to the possibility of incorporating utility into non-fungible tokens.</p><h3>Be used as a official ticket</h3><p dir="ltr">One of the most significant applications for NFTs may be as digital versions of tickets that give entrance to special events. Some performances have already used utility tokens to provide holders with exclusive attendance to closed-door events. Because each NFT is unique, event organizers may check these digital VIP tickets just like traditional tickets, without danger of ticket fraud.</p><h3>In the gaming industry</h3><p dir="ltr">Undoubtedly, NFT gaming has emerged as a hot market within the blockchain industry. Because NFTs are the foundation of this ecosystem and the metaverse in general, it's no surprise that utility NFTs are employed in the gaming industry to ease monetary transactions and general gameplay. This includes the use of NFTs to represent exclusive in-game assets and collectibles, as well as valuable things that can be cashed out under a play-to-earn (P2E) model. For users who have never played blockchain games before, game NFTs may be traded for fiat cash on a secondary market such as <a href="https://www.builder.news/crypto-insights/how-to-use-opensea" alt="An ultimate guide on how to use OpenSea NFT marketplace" title="An ultimate guide on how to use OpenSea NFT marketplace" target="_blank" rel="" class="">OpenSea NFT Marketplace</a>.</p><h3>In the fashion industry</h3><p dir="ltr">The emergence of <a href="https://www.builder.news/crypto-insights/how-metaverse-and-nfts-shape-our-world" alt="How Metaverse and NFTs shape our world" title="How Metaverse and NFTs shape our world" target="_blank" rel="" class="">metaverse and NFTs has significantly transformed</a> many industries. Therefore, as a modern industry that seldom misses out on global trends, the fashion industry also takes advantage of utility NFT to advance its development process. In fact, online auctions may offer digital versions of real-world luxury goods as NFTs, with successful bidders receiving their physical loot. Besides, improvements in NFT utility potential might assist in the production of virtual fashion displays as well as special shopping experiences.</p><p dir="ltr"><em><strong>&gt;&gt;&gt; Related article: </strong></em><a href="https://www.builder.news/crypto-insights/nfts-in-fashion" alt="NFTs in fashion - A new “mix and match” style" title="NFTs in fashion - A new “mix and match” style" target="_blank" rel="" class=""><em><strong>NFTs in fashion - A new “mix and match” style</strong></em></a></p><h3>In metaverse</h3><p dir="ltr">The popularity of virtual worlds has also increased demand for virtual real estate. Many well-known metaverse projects, such <a href="https://www.builder.news/crypto-insights/6-things-you-need-to-know-before-joining-the-sandbox-metaverse-mJvp0" alt="6 things you need to know before joining The Sandbox Metaverse" title="6 things you need to know before joining The Sandbox Metaverse" target="_blank" rel="" class="">The Sandbox</a> and <a href="https://www.builder.news/crypto-insights/decentraland-metaverse" alt="Decentraland: A real creativity in the virtual world" title="Decentraland: A real creativity in the virtual world" target="_blank" rel="" class="">Decentraland</a>, have presented the notion of virtual real estate with diverse use cases. One of the most common NFT utility ideas is <a href="https://www.builder.news/crypto-insights/virtual-land-estate-which-is-the-best-land-to-buy-in-metaverse" alt="Virtual land estate: Which is the best land to buy in Metaverse?" title="Virtual land estate: Which is the best land to buy in Metaverse?" target="_blank" rel="" class="">virtual real estate</a>, which may enable a variety of use cases such as advertising and hosting new experiences in virtual environments. NFT applications can also be used in real estate to represent physical properties using land deed data.</p><h2>Best utility NFT projects</h2><p dir="ltr">Because of the phenomenal expansion of the NFT market, many investors want to come on board and profit from this opportunity. However, with so many NFT projects being created every day, finding a real diamond is getting increasingly difficult. Therefore, here are top recommended utility NFT projects platforms you might want to refer to.&nbsp;</p><h3>Azuki</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed24f25956a836a8e6023f659fee92.jpg" alt="azuki nft" title="azuki nft" width="600" height="269" class="lykafe1"></p><p dir="ltr">Azuki is a collection of 10,000 avatars which purchasing one gives you an entrance to The Garden. Azuki, according to the developers, is "skating between the blurring edges of the physical and digital worlds as they begin to combine." They are cooperating with other projects to launch streetwear collaborations, live events, and further NFT drops.&nbsp;</p><p dir="ltr">In order to own an NFT’s Azuki, you can find it on the largest NFT marketplace - OpenSea.</p><h3>Doodles</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed24f25956ac8ea8e6023f659fee92.jpg" alt="doodles NFT" title="doodles NFT" width="600" height="437" class="lykafe2"></p><p dir="ltr">Doodles is another well-known utility NFT project that has been registering impressive performance in the NFT market. Doodles are a collection of 10,000 NFTs comprised of hundreds of interesting visual qualities created by Burnt Toast. Skellys, cats, aliens, apes, and mascots are among the hand-drawn Doodles. There are also hundreds of uncommon heads, outfits, and hues of the artist's palette in the Doodles collection. What makes owning a Doodle so special is that it lets users vote on community-driven features as well as future goods and events. Besides, the buyers will also have a say in how the Doodlebank's cash is spent.</p><p dir="ltr">Doodles may be purchased at OpenSea, Nifty Gateway, and Look Srare.</p><h3>Flyfish Club</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed24f25956b182a8e6023f659fee92.jpg" alt="flyfish club NFT" title="flyfish club NFT" width="600" height="600" class="lykafe3"></p><p dir="ltr">The Flyfish Club, a project of Gary Vaynerchuk, is the first exclusive private dining club in the world for NFT members. Members of the Flyfish Club will have access to a 10,000+ square foot private dining area in New York.There are two types of FFC membership, including standard Flyfish members and Flyfish Omakase members.</p><p dir="ltr">The standard Flyfish membership allows users to reserve a table for up to 8 non-token holders. Users may reserve a table for the same number of guests with the Flyfish Omakase option, but they can only invite one guest to the omakase room. The critical part of being an NFT member is that users may lease or sell their membership at any time.</p><h3>Women Rise</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed24f25956b591a8e6023f659fee92.jpg" alt="women rise" title="women rise" width="600" height="261" class="lykafe4"></p><p dir="ltr">Women Rise is a collection of 10,000 randomly created samples by globally known visual artist Maliha Abidi. The collection's purpose is to make the NFT world more inclusive and varied by introducing more female characters and contributing a portion of main sales to charities that promote gender equality, girls' education, and mental health in marginalized communities.</p><h2>How to convert standard NFT to utility NFT?</h2><p dir="ltr">There are various methods for <strong>converting standard NFT into an utility NFT</strong>. Let's look at several such case:</p><h3>Stick the utility of NFT to physical products</h3><p dir="ltr">One of the most common methods to add utility to an NFT is to provide a replica physical world product. The approach is widely used in NFT Jewelry and Fashion items. Because NFTs are about generating one-of-a-kind digital assets that cannot be replicated, the physical equivalents will also be one-of-a-kind works of art, raising the value of both the NFT and the physical product.&nbsp;</p><h3>Connect NFTs with exclusive events, shows, or tickets</h3><p dir="ltr">As mentioned above, one of the outstanding features of utility NFT is to provide rewards which are related to exclusive events and show passes. Therefore, in order to make a utility NFT, you can connect them with value events, attractive rewards, and more. Depending on how much value you want to add to your NFT, this choice is essentially endless.</p><h3>NFTs with passive income utility&nbsp;</h3><p dir="ltr">Another method which is pretty attractive is to change standard NFT into utility NFT with passive income. In other words, if you own that utility NFT, you can benefit from its passive revenue. This method is used by Slotie's NFT Utility, which distributes half of its revenue to Slotie (NFT) owners. This offers NFT purchasers with a continuous passive revenue stream while also helping to support the ecosystem. A similar strategy might be applied by paying dividends. It is especially handy in the case of the platform's restricted number of NFTs.</p><h3>Special content access</h3><p dir="ltr">Quentin Tarantino released his first NFT collection in March 2021, featuring uncensored portions from his legendary 1994 film "Pulp Fiction." In the metaverse, Kings of Leon published the full album "When you see yourself" and in order to have access to unique content, people need to own its utility NFT.</p><h2>Bottom lines</h2><p dir="ltr">Even if you're not an enthusiastic NFT collector, you should think about getting one of these utility NFTs because it may come with a valuable bonus. Utility NFTs have a range of purposes, including earning passive money and having exclusive access to events and things, and in the future they will provide more use cases for users.</p><p dir="ltr">The utility of NFTs will increase in significance as <a href="https://www.builder.news/sub-category/web30" alt="Web 3.0" title="Web 3.0" target="_blank" rel="" class="">Web 3.0</a> grows, benefiting both their developers and owners. If you're an investor considering adding NFTs to your portfolio, think about their usefulness, as they have more applications and value than just collectable NFTs.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div><p><br><br></p>

An NFT which adds more utilities has been providing a plethora of benefits for users. So what exactly are utility NFTs and their value? Discover it through this article!

Utility NFTs: The next level of NFTs