With non-fungible tokens (NFTs) continuously taking the world by storm, these digital assets are perfect for fashion in the metaverse, according to Amrit Dhami, a thematic analyst at GlobalData.
She noted:
“While there is significant uncertainty about what the metaverse will look like, we do know that it will be populated by avatars. Gamers already pay substantial amounts of money for in-game skins, so it stands to reason that metaverse visitors will also naturally invest in clothing and accessories for their avatars.”
Given that NFTs reflects proof of ownership of an asset like an image, these creations have the potential of changing the fashion look in the metaverse because users are offered the chance to buy ‘NFT clothing’ just like the way people purchase custom-made outfits.
Dhami added:
“These clothing items will not only allow people to build up virtual premium fashion wardrobes to express themselves in the metaverse, but these digital versions may become more valuable than their real-life counterparts due to their ‘non-fungible’ nature.”
NFTs are different from a typical crypto token because of fungibility. A fungible token can be exchanged for another, whereas a non-fungible one cannot be based on its finite nature.
Therefore, the metaverse will provide designers with an opportunity to showcase their creativity through NFTs. Furthermore, they can create private communities with exclusive access to upcoming NFT collections like Dolce & Gabbana. The leading Italian luxury fashion house sold a nine-piece collection of fashion NFTs dubbed Collezione Genesi for a whopping $6 million in October 2021.
With gaming being at the heart of the metaverse, there is significant potential for game developers and fashion houses to collaborate to create new skins for gamers, Dhami concluded.
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