The NFT industry has not regained its former glory since 2022, but that has not hindered the advancement of the technology.
For example, OpenSea collaborated with the music and arts festival giant Coachella to launch three NFT collections that provide virtual and physical VIP experiences and merchandise.
The collaboration will result in three collections with different benefits and levels of exclusivity (along with different prices). One of the offerings is the VIP Pass + Oasis Lounge Keepsake, launched on Tuesday for $1,499 each, with a limit of 1,000 NFTs. This tier offers access to a 2024 VIP Festival Pass and its new lounge with exclusive bar benefits, including a selection of complimentary drinks.
The upcoming two collections are scheduled for release in late March and mid-April, with information on pricing and features to be provided at a later time, according to the companies.
The layer-1 blockchain Avalanche, which according to CryptoSlam data is the eighth-largest blockchain by NFT sales volume in the previous 30 days, will support the NFT collections. Coachella teamed up with Avalanche because they share a vision for the product the festival aims to create, but further information will be revealed later this month, according to Coachella’s innovation lead, Sam Schoonover, in an interview with Eltrys.
Many NFT collections have been announced since the term gained popularity. OpenSea’s website states that it has more than 2 million collections and 80 million NFTs on its marketplace.
It’s clear that this project is not the first in the music industry to provide practical applications. It serves as a significant illustration of how utility-driven NFTs are reshaping perceptions of the Web3 sector. Before, NFTs were often associated with expensive digital profile pictures (PFPs). It now pertains to digital images that are useful both online and offline. This is a promising indication that NFT marketplaces will attract new users and increase sales, as their supporters suggest.
According to Devin Finzer, CEO and co-founder of OpenSea, NFT-based music and ticketed collections are considered one of the most effective methods for the crypto subsector to achieve mainstream adoption. He believes tickets hold sentimental value for fans and sees the potential for them to serve a practical purpose beyond being keepsakes or collectibles. “It’s the ideal combination for NFTs.”
OpenSea has previously worked on “smaller music-related NFT projects,” but this particular project focuses on ticketing and VIP access, which Finzer and others have been interested in for a while.
“Coachella has the audience and distribution to elevate it to a new level,” Finzer stated. Considering the potential of this NFT to be truly valuable and exciting, unlike some previous projects that may have been less thought out, this one stands out as sophisticated and promising with tangible real-world value.
This collaboration might be viewed as another effort by OpenSea to reclaim its position in a competitive market. As of January 1, 2022, the NFT global sales volume reached a peak of $23.7 billion. According to Tiexo Analytics, NFT marketplaces recorded a volume of $2.21 billion over the previous month.
Since 2017, OpenSea has processed more than $20 billion in volume. Despite having a significant total volume, OpenSea is not currently the largest NFT marketplace. OpenSea was the fourth-largest platform in the past month, accounting for 10% of the market share with a total volume of $222.65 million. It followed Blur, Magic Eden, and OKX, according to Tiexo data.
This project simplifies the process of purchasing NFTs by implementing a straightforward email sign-up, eliminating the need for newcomers to set up a crypto wallet or purchase cryptocurrency. Sign-ups for email lists and credit card access are becoming popular in a sector that is usually hard to reach.
“Web3 struggled with usability for an extended period,” Finzer noted. However, in the past three to four years, significant progress has been made to simplify the process for individuals who are not already knowledgeable about cryptocurrency. “It will be seamlessly integrated into the Coachella experience, allowing users to sign up and obtain the NFT effortlessly.”
Schoonover anticipates that many other companies will soon realize the potential of NFTs beyond being mere collectible images. Viewing them as distinctive, valuable digital tickets, he anticipates that others will be interested in exploring NFTs and the associated real-world perks and opportunities.
Finzer agrees with that idea. Typically, NFTs have evolved from collectibles and PFPs to focus more on practical applications in recent years. There is a specific group of individuals who are intrigued by remaining in the PFP world, while there is a larger audience who may not prioritize the crypto sentiment but recognize the value in the technology, he noted.
