The nft market trends are growing by leaps and bounds, and it’s only going to continue to grow in the years to come. So what is nft? NFT stands for a non-fungible token, and it’s a type of crypto asset that is unique and can’t be replicated. Unlike other types of crypto assets, nfts have a variety of use cases that make them very appealing to businesses and consumers alike. This blog post will discuss the next big trend in NFTs: what you need to know about them!
This part of NFTs will grow a lot, and we have the numbers to back it up.
In 2021, it felt like the world was full of art NFTs.
Creators saw that they could connect directly with their most passionate fans instead of relying on intermediaries that took a lot of money from their hard work.
A direct line between the creator and the fan is what NFTs stand for now. This leads to a stronger connection between the value created and the fan’s value.
But we’ve only seen NFTs take off in the arts. People worldwide make things: writers, musicians, videographers, designers, artists, etc.
Digital Ownership and NFTs Will Benefit Them All
We’ve seen a few of these platforms take off, like Mirror Protocol for writers, but much of this potential hasn’t been used yet.
Today, I give you a look inside one of these untapped creator verticals and into the world of Music NFTs, which are things that you can buy for real money.
The Bull Case for NFTs in Music
There’s a new market for NFTs. One that has the best chance of becoming popular yet.
Music NFTs are audio files that you can buy.
They give fans a chance to buy the songs they love, now with digital scarcity, thanks to web 3.
Having music to listen to isn’t a new thing, but having music to listen to on the internet is.
People like to collect vinyl, burn CDs, make playlists, and more. Music NFTs are a new way to curate your taste and learn more about the creative work and the person who made it. There was a lot of money from music collectibles in the old world. For digital things, there’s not a sky that’s too high.
People are becoming more and more interested in Music NFTs. We’ll look at this new model for the next generation of independent artists.
A New Way to Make Money
Music NFTs are a new way for artists to make money.
Music NFTs are just digital artifacts that you can buy at their core. Because they don’t have a right to own them, they are just a thing that can be bought and sold by someone who likes them.
Music NFTs give artists power in a world where streaming and touring are the norm. They build a community of superfans who want to collect rare digital representations of the work.
We’re only going to talk about Music NFTs as collectibles for this article. There are platforms like Royal that are looking into Music NFTs with royalty rights.
Collectibles are the easiest way for artists to make money because they don’t have to deal with many regulations when they own all of their rights.
Traditional streaming platforms like Spotify pay about $3,700 for every million streams for those who don’t know.
Music NFTs, on the other hand, are selling for thousands of dollars, which makes a strong case that building a community in web3 is better than playing the numbers game on Spotify.
If you have a lot of superfans who want to buy Music NFTs, they can help you sell them even if the crypto market isn’t doing well. To make money directly from an artist’s 100 true fans is the way to do it.
You don’t have to be a pop star to make money. Music NFTs let you make more money even if you only have a few fans. Creator DAOs and music micro-economies start with these two things: the DAOs and the music.
Cooper wrote a lot about Music NFTs in this post, and he summarized it for people who didn’t know what they were.
Zooming in, a few platforms are leading the charge for Music NFT.
We can see how crypto could change how people make and sell music for the first time on these platforms.
The Catalog is a 1/1 Music NFT market.
In the same way as SuperRare or Foundation, all NFTs are minted as one-of-a-kind works. This means that no other copy of that song will ever be made (in theory). The Catalog was the first place where you could buy and sell audio. It was built on the Zora protocol.
At this point, Catalog has sold more than $2 million worth of goods. The average sale price is $3,707.
Top artists on Catalog make more money than they would if they made more money from streaming Spotify. This is based on the $3,700 for every million streams (or $0.0037 for every stream).
The top web3 artists have made 7.5 times more money from selling Music NFTs than they would have made if they had a year’s worth of Spotify streams.
This clarifies that independent artists can make a lot more money through Music NFTs than streaming, which shows that. As necessary, this isn’t taking away from your streaming money. You can sell your music NFT and still make money.
The average sale of a catalog is now worth about a million Spotify streams on a large scale. With no underlying platform fee, all of the money from that sale goes to the person who made it.
But these sales are still going on. The Catalog is starting to grow like a hockey stick, with monthly sales in the six-figure range and the average sale price going up. With SuperRare’s 1/1 art market being in the eight-figure field, there’s a lot of room for Catalog and 1/1 Music NFTs to run around.
Sound is a Music NFT market that sells editions instead of 1/1s.
During each release, there is a Listening Party where people can listen to the whole track and then get an NFT with the option to leave a comment on the track.
As a reward for being early, collectors are shown in an Audience tab. To sell a Sound NFT, you also give up your rights to that comment slot.
The last 30 sales of Sound NFTs have been priced at 0.1 ETH. This means that each Sound NFT is worth 75,000 Spotify streams, and each sellout is worth more than 1.8 million Spotify streams at the standard 25 editions.
As a side note, Daniel Allan launched a 100 edition drop for his EP Overstimulated, and it sold out in a minute and made him 10 ETH. For example, the new EP has only made $444 in Spotify’s estimated earnings so far.
There is more room for secondary market activity when prices are lower. This gives a first look at why drops have become a Schelling Point for collectors who are just getting into the hobby.
In addition to the direct sales, secondary volumes have been rising and making each artist more money. The average Sound.xyz drop makes about 420,000 streams worth of royalties alone.
One person who collects Music NFTs is almost 100 times more valuable than someone who listens to Spotify every month. Most of the time.
- Sound NFT = 2,500,000+ streams
- Catalog NFT = 1,000,000+ streams
This shows how powerful Music NFTs is as a way for independent artists to make money. It lets people who want to buy art now value their work directly rather than wait for a hit song and the streaming fees to come in. Music collectors will buy it if it’s good. They’ll buy it for what they think it is worth.
This means that the number of unique artists who make NFTs is growing, and the number of unique collectors is also increasing. Compared to the rest of the NFT market, it’s still a minimal amount of money.
Music NFTs are about to get their big break.
In terms of last month’s sales volume, Catalog and Sound’s combined made less than $1 million in both primary and secondary sales, which only made up 0.15 percent of OpenSea’s NFT volume.
Is this a good thing to do? You can decide for yourself.
People who make Music NFTs need to be happy.
While web3 artists are making money, having a more significant web 2 is essential.
Web3 lets you pay more attention to the quality of your fans.
Web2 lets you focus on the number of people who like you.
This relationship is the best chance for independent artists to get new fans to buy their music.
Eventually, more artists will be interested in what it means to be web3-native. They’ll also be more likely to release tracks only as Music NFTs aren’t available on DSPs like Spotify or Apple Music.
Watch Out For
For people who keep up with the Music NFT landscape, here are some essential platforms to watch in the coming weeks.
- Royal sold out of its first Nas-themed drop.
- It starts on February 4th, and it’s called Relics.
- For 0.6 ETH, you can get a pass to Arpeggi Season One.
- DoomsdayX and Haleek Maul worked together to give out 200 ETH worth of Music NFT producer passes.
- Glass Protocol works with artists to make music videos that can be bought as NFTs.
- A community-led LoFi project bought all of Omgkirby’s first NFTs, so they had to give them away.
Keep an eye on Water & Music and NFTNow to stay updated on Music NFTs.
Taking a Look Ahead
Please bet on your favorite artist when they were still young.
With Music NFTs, this future isn’t very far away at all.
This cycle will inevitably turn into a full-fledged DAO economy in which artists are routing a percentage of all sales to a community-led treasury. Today, we are looking into how to collect music.
People who set up community treasuries often get tokens.
When we look at early examples like Daniel Allan and his Overstimulated EP as a case study, we should all expect to see more Artist DAOs soon.
If you don’t have any Music NFTs yet, spin them around and collect them.
This area has a lot of hidden gems that you can find right now.