PFP NFT: What Are They and Why Do We Need Them?

PFP NFT: What Are They?

PFP NFT (Profile Picture NFT) is a type of NFT that users can use as their personal profile pictures.

PFP NFTs represent one of the most developed branches within the NFT space in terms of market capitalization, transaction volume, and liquidity.

While not limited to a specific standard, PFPs typically manifest as some form of character.

The first PFP NFT was CryptoPunks, launched in 2017.

The crypto market values decentralization and anonymity. Users can engage in on-chain activities freely without revealing their identities. However, they still need something to represent themselves.

Read more: Top 10 Popular and Valuable NFT Types

Why Do We Need PFP NFTs?

A PFP NFT collection consists of multiple NFT images with a shared developmental idea, creating a community around the project as more people own these NFTs.

For a PFP project to succeed, it needs to generate more demand (people wanting to own the NFT) than supply (number of NFTs released), emphasizing community as a critical factor.

Expression of Self

Users are drawn to owning PFP NFT characters that resonate with their personal style. This desire is amplified by characters that reflect their individuality, rare traits, or those that exist only in their imagination.

Many are willing to pay higher prices for an NFT that truly represents them, rather than opting for the cheapest option, as it becomes a representation of themselves in the crypto world.

Beyond self-expression, owning a PFP allows users to become community members, DAO developers, and initial investors in a project with significant potential.

Additionally, PFP owners may gain access to games or other products developed by the community.

The Rise of the Metaverse

As the metaverse becomes more prevalent, you will use the internet not only through computers or smartphones but immersed within it.

Your workday might feel like playing a video game. You could be grocery shopping while looking around your kitchen. This future concept is becoming clearer day by day!

NFTs are essential in the metaverse, where everyone will need their own avatar representation.

Applications in Gaming

The MOBOX MOMOverse Avatar collection is well-known among NFT gamers.

The upcoming game Illuvium will introduce the PFP NFT collection called Illuvitars for its players.

This collection is highly anticipated within the NFT gaming market in the near future.

The New Era of Profile Pictures

Twitter now allows NFTs as profile pictures.

On January 21, 2022, Twitter officially introduced NFT profile picture features with an impressive introduction video.

Unlike traditional circular profile pictures, NFT profile pictures are distinguished by hexagonal frames.

@0xWave Twitter Account

Setting NFTs as profile pictures allows users to link their Twitter accounts with their crypto wallet addresses.

This means your Twitter account will now be associated with transactional information, wallet history, and details of NFTs in the wallet, all publicly viewable on the blockchain.

Reddit Collectible Avatars

Reddit has significantly popularized PFP NFTs among users.

Reddit Collectible Avatars is a collection where Reddit collaborates with independent artists to produce and airdrop NFTs to Reddit users. Artists have earned over $60,000 in copyright from secondary market NFT sales.

NFT Reddit Avatars have trended in trading volume and popularity on OpenSea, with trading volumes exceeding $6 million on October 25 alone.

Nearly 3 million Reddit Vault wallets have been created, surpassing the number of wallets on OpenSea.

Over 40,000 NFTs have been sold at various prices ranging from $10 to $100, making these collections widely accessible.

Because Reddit does not use the term 'NFT' but refers to these collections as 'Digital Collectibles,' millions may not even realize they are purchasing NFTs on the blockchain or truly opening a crypto wallet.

These collections can be easily purchased with a credit card, avoiding complex crypto transactions.

Will major social media platforms like Facebook or Instagram allow users to set NFTs as profile pictures as Twitter and Reddit have done?

Conclusion

PFP NFTs represent one of the most advanced branches within the NFT space. The potential for PFP NFTs remains extremely significant.

In this article, Gamefinity has explored practical applications of PFP NFTs. Stay tuned for future articles analyzing popular PFP NFT collections and their applications.