Non-fungible tokens, or NFTs, are digital assets held on a blockchain ledger. They can take the form of artwork, photographs, movies, or audio. Retail investors and hedge funds made significant investments in NFTs in 2021, with sales exceeding $25 billion as the practice gained traction.
Even though NFTs have been launched since 2014, investors began actively participating in NFT trading in 2021. In 2021, celebrities and high-profile persons joined the crypto craze as well.
The increased interest in the metaverse has also aided in the hype around blockchain, crypto, and NFT. Important market participants are also getting involved in the NFT mania. For instance, major fashion houses such as Gucci, D&G, and Burberry recently launched a line of virtual wearables.
What Is an NFT?
NFTs are digital assets that mimic actual objects in the real world, such as artwork, music, in-game goods, and films. They are extensively traded online, typically in exchange for other cryptocurrencies, and are typically encoded using the same underlying software as many other cryptocurrencies.
Although they have been established since 2014, NFTs are gaining traction as a method of purchasing and selling digital artwork. The market for NFTs alone was approximately $41 billion in 2021, reaching the total value of the worldwide fine art market.
NFTs are frequently one-of-a-kind or produced in minimal quantities and feature unique identifying codes. This is in stark contrast to most digital creations, which are almost always freely available. Cutting off supply should theoretically increase the value of a particular asset if it is in demand.
What Is the Difference Between an NFT and a Cryptocurrency?
NFT is an abbreviation for non-fungible tokens. While it is sometimes produced in the same way as cryptocurrencies such as Bitcoin or Ethereum, the similarities end there.
Physical money and cryptos are both "fungible," which implies they may be traded or exchanged. Because of its fungibility, crypto is a trusted medium of exchange on the blockchain.
NFTs are distinct. Every digital signature protects each NFT, so it is impossible to substitute or equate one with another. As a result, they are not fungible.
What Are NFT Stocks?
In a nutshell, an NFT is a blockchain-based digital token, and it is inextricably linked to a specific digital object, which might be anything from a work of digital art to a virtual plot of land.
NFTs are gaining traction due to tracking and establishing ownership of digital assets. This means that they can be purchased, sold, or stored, and their value will fluctuate over time, just like any physical object, creating a new market for digital products.
Additionally, NFTs are being used to secure tangible assets, such as artwork or real estate. The blockchain-based system verifies ownership and tracks the provenance of physical and digital objects in real-time and cannot be altered, making it a reliable method for establishing right and following the origin of physical and digital items.
How to Find the Best NFT Stocks?
Selecting the best NFT stocks for your portfolio is not a simple task, and you must consider how the stock intends to interact and engage with the NFT space and how its shares stack up as an investment potential.
When looking for the top NFT stocks, it's also prudent to analyze conventional investment factors, such as the company's recent share performance and dividend policy.
Why Should You Invest in NFTs?
Individuals' motivations for investing in NFTs, whether through selecting NFT stocks to invest in or directly purchasing NFTs. Specific individuals are ecstatic to be a part of a disruptive movement and wish to own a piece of the newest technology. Others see enormous potential value in NFTs and want to get in early.
NFTs are already enhancing the value of gaming by forging new connections between artists and their supporters and establishing new communities of like-minded individuals worldwide. According to thought leaders, NFTs may eventually serve as the foundation for new labor forms, the development of new markets, and the establishment of democratic nations.
10 Best NFT Stocks to Consider Now
1. Lucky Block
Lucky Block is the first selection for the most excellent NFT stocks. Lucky Block is not a stock; instead, it is a cryptocurrency lottery platform built on the renowned Binance Smart Chain (BSC) network. However, because Lucky Block is not equity, it can increase diversity and optimize your portfolio's risk-reward ratio.
The Lucky Block cryptocurrency lottery platform seeks to revolutionize the lottery industry by transferring it to the blockchain, making it completely decentralized and transparent. Because Lucky Block's lotto draws are digital, players worldwide can participate, leading to larger and more frequent jackpots.
Following some early success, the Lucky Block team decided to enter the NFT market with the release of Lucky Block NFTs. Platinum Rollers Club is an NFT collection comprised of 10,000 digital assets that serve as an 'entry ticket' to exclusive daily prize draws. These draws occur independently of Lucky Block's main lotto draws, providing NFT owners two chances to win a prize each day.
Additionally, 25 of the Platinum Rollers Club's NFTs are designated as 'Rare Editions,' which entitles the owner to twice the jackpot if their number is drawn. Finally, once all 10,000 NFTs have been sold, Lucky Block will hold a one-time prize draw for the chance to win a brand new Lamborghini Aventador — valued at more than $300,000.
The exciting perks of NFT ownership have generated significant discussion within Lucky Block's Telegram group, with a substantial portion of the collection already sold. With the impending release of Lucky Blocks' much-anticipated iOS app, these NFTs are expected to gain even more traction — making Lucky Block assets to invest in for exposure to this booming market.
2. Silvergate Capital (SI)
Silvergate Capital is a small bank based in San Diego, California. It was one of the oldest institutions to enter the cryptocurrency industry and has since shifted its attention entirely to cryptocurrency. Ninety-three crypto exchanges are among Silvergate's clients, which use the company's bank accounts to change the money that backs to their crypto trading.
Additionally, Silvergate has its crypto trading network, the Silvergate Exchange Network, or SEN, enabling individuals and institutions to conduct crypto exchanges and support various stablecoins. Silvergate, according to analysts, has amassed a sizable portion of the crypto exchange market.
3. Coinbase Global (COIN)
While the service is not yet operational, about 3.7 million people have joined the company's queue. Even better, Coinbase just announced a partnership with Mastercard (NYSE: MA) to streamline the NFT purchasing process. Mastercard states the following:
Purchases of digital items should be as straightforward as those of T-shirts or coffee pods on an e-commerce site. You may complete your transaction with a single click, which is not the case for most non-fungible tokens or NFTs. To purchase an NFT — such as a piece of digital art — today, you must first open a crypto wallet, buy crypto, and then use it to purchase an NFT on an online marketplace.
COIN's recent results have been strong. For the fourth season last year, EPS came in at $3.32, exceeding analysts' expectations of $1.94. Additionally, the company announced sales of $2.5 billion, exceeding estimates by 27%. Monthly transactional users increased to 11.4 million, exceeding analysts' expectations of 9.7 million.
We'd expect to see the stock initially refill its negative gap around $220 after finding double bottom support near $160. If everything goes as planned, the COIN stock may surge to $280.
4. Dolphin Entertainment Inc (DLPN)
Dolphin Entertainment is a conglomerate of entertainment marketing and content creation companies that counts several digital content creators among its clients. It recently partnered with the proprietors of cryptocurrency exchange FTX.US to develop and construct an NFT marketplace where prominent sports, gaming, charity, and entertainment brands may manufacture and offer their own NFTs.
Dolphin's entry into the NFT field boosted the company's price. Analysts saw it as a significant competitor to DraftKings, an online sports gambling and entertainment company that just announced the launch of a new NFT marketplace.
5. eBay
eBay is a global online marketplace that enables people to purchase and sell things from the convenience of their own homes. The company was created in 1995 and went public three years later. eBay is a global online marketplace that enables people to purchase and sell things from the convenience of their own homes.
The company was created in 1995 and went public three years later. eBay is listed on the NASDAQ and has a market valuation of more than $30 billion. Although eBay is well known for its online marketplace, the company has just entered the NFT arena.
In a nutshell, the platform now allows for the sale of NFTs by trusted merchants. This can be accomplished through a fixed-price listing or a traditional auction listing. Crucially, eBay will work to establish itself as the go-to destination for newcomers looking to purchase NFTs, in part because the platform accepts conventional payment methods.
By contrast, a handful of well-known NFT marketplaces accept cryptocurrency payments exclusively. eBay currently offers a diverse range of listings, including music NFTs, crypto art, and trading cards. eBay charges a fixed commission of 5% of the total sale value to NFT merchants when it comes to revenue.
This allows eBay to gain a foothold in the NFT industry without incurring any apparent dangers. When examining the performance of this top-rated NFT stock, we see that eBay shares have increased by more than 70% over the last five years. Twelve-month returns are less favorable, with eBay stocks declining by 13%. Nonetheless, eBay remains the most incredible NFT stock to buy at the moment.
6. Draftkings
Draftkings is the following NFT stock that we like to look at. Draftkings, founded in 2012, specializes in online betting and sports fantasy competitions. Draftkings stocks went public on the NASDAQ in 2019, and you would have paid slightly under $10 per share back then. According to current pricing, the stocks have gained more than 67 percent in value.
The shares are down more than 70% year to date, making this another NFT that can be purchased at a significant discount. Regarding its exposure to NFTs, Draftkings has now developed a program that delivers new sports-related tokens regularly. This is accomplished through a partnership with Autograph, which features autographed NFTs from various prominent athletes.
A recent example is the Tom Brady edition, which is limited to 100 NFTs for $250 each. Additionally, DraftKings hosts a secondary marketplace where users can buy and sell NFTs peer-to-peer. Finally, Draftkings operates in a betting business that is predicted to grow significantly in the following years and its NFT division.
7. Cloudflare
If your primary objective while looking for the top NFT stocks is to invest in firms with a lot of upside potential, Cloudflare is well worth a second look. Said, Cloudflare is a popular technology stock that specializes in securely delivering material via the cloud. It is home to one of the industry's largest networks and is capable of providing lightning-fast execution rates.
Cloudflare now supports NFTs to ensure the company continues to develop. Cloudflare's platform does not currently support the direct creation of NFTs, and you would still need to employ a third party – such as OpenSea – to accomplish this.
Once you've obtained the NFT's unique token ID, you can safely upload it to your Cloudflare account. Cloudflare is one of the best lumber stocks in the NFT industry and the broader markets. Indeed, since Cloudflare's initial public offering on the New York Stock Exchange in September 2019, its shares have surged by more than 500 percent.
By comparison, the NYSE Composite Index has gained by just 27% over the same period. Cloudflare's stock price has increased by 57 percent in the last year, and the NYSE Composite has increased by merely 4% over the same period. Finally, based on its prior all-time high of more than $210, Cloudflare stocks are available for approximately half the cost.
8. WISeKey International Holding AG (NASDAQ: WKEY)
WISeKey International Holding AG is a well-known global cybersecurity company that provides individuals with digital security through blockchain technology, artificial intelligence, and the internet of things. WISeKey International Holding AG possesses billions of microchips that collect massive data, enabling the company to detect industrial equipment failures in advance.
On November 23, the company announced a collaboration agreement with Luminaries21.com and the OISTE.ORG Foundation to develop non-fungible tokens developed, particularly for world leaders, celebrities, and influencers. The NFTs will be affiliated with a variety of social issues to create and sponsor scalable solutions that address the United Nations' global sustainable development goals and assist other humanitarian organizations.
WISeKey International Holding AG said on January 13 that it is establishing an NFT ecosystem with a direct connection to satellites that would authenticate NFTs from orbit to device via secure telecommunications. Its shares increased by 8% in response to this announcement.
9. McDonald's
While you may be shocked to see McDonald's on our list of the best NFT stocks to purchase right now, the fast-food giant has intended to enter this market. To begin, McDonald's has already released their inaugural NFT, and McDonald's began dropping NFTs in late 2021 to commemorate the 40th anniversary of its famous McRib burger.
The NFT collection is dependent on the Ethereum blockchain, and the company anticipates releasing additional tokens each year. Along with the NFT series, it is reported that McDonald's is considering expanding into the metaverse with its vast restaurant chain.
According to the ten trademark applications submitted by Mcdonald's, the company intends to offer a "virtual restaurant featuring both physical and virtual goods." Additionally, this is reportedly being done with a home delivery service. It remains to be seen how far Mcdonald's management takes its metaverse initiative.
Whether its NFT and metaverse trip unfolds, Mcdonald's is a top-rated blue-chip stock worth considering for your portfolio. The share price of this powerful and steady global brand has increased by about 90% in the preceding years, and this is in addition to the company's current dividend yield of 2.2 percent, based on current prices.
10. Nike
Nike is the final business on our list of the top NFT stocks for 2022. In a nutshell, Nike recently demonstrated its interest in the NFT and metaverse businesses by acquiring RTFKT Studios. For those unfamiliar, RTFKT Studios is a leading designer of show NFTs - all of which are wearable, purchasable, and sellable in the metaverse.
RTFKT Studios has already achieved considerable success with its virtual sneaker collections, with Elon Musk personally purchasing one for more than $90,000. And, given Nike's acquisition of RTFKT Studios in its entirety, it's just a matter of time before the company begins pushing its digital NFT series. When you consider Nike's brand devotion, its NFT subsidiary may be pretty effective.
If you agree, you will be investing in a stock that has earned approximately 130 percent returns over the last five years. Nike has faced some headwinds over the previous year, with its stock price falling by 6%. Nonetheless, we like Nike's regular dividend, which yields over 1%.
Final Thoughts
Numerous established businesses from various industries have since entered the NFT space. Additionally, by investing in such companies, you can acquire indirect exposure to NFTs risk-averse manner.
Once you've determined which NFT stock to purchase, you may finish your transaction at Top1 Markets. This popular trading platform accepts fee-free debit/credit card payments, which means investing should take no longer than five minutes.
Real-time News
