As the crypto winter casts dark clouds over the market, some crypto stars still manage to shed some light. Music NFTs are particularly shining at the moment. NFT audio mining has doubled in several marketplaces for two straight months. A recent report from Warner Music could benefit Ethereum in particular.
ETH forecast from a technical point of view
Ethereum managed to recover in late November and rose above $1,200. Since then, the price of ETH has consolidated and supported in this price area.
Indicators are suggesting that ETH may now be grounded. Furthermore, if the sideways movement continues and there are no dynamic factors, a breakout from this level could occur in the coming weeks.
A prerequisite for this is that ETH does not fall below USD 1,200 over the weekend. At the beginning of the week, a break of the resistance at 1,300 US dollars is possible. If this continues, the bulls could test the next resistance at $1,360. From this price level, a profit is likely to be made, as has already happened in the past.
Another scenario is bullish momentum that may develop after the EMA 50 and EMA 20 indicators have outperformed. From a chart perspective, resistance would stand at $1,600 and $1,800 to develop additional momentum above $1,400.
The global market capitalization of cryptocurrencies is estimated to be just over 840 billion US dollars. Ethereum’s share of about 150 billion US dollars is 18 percent of the total market.
Warner Music announces Ethereum-based music NFTs marketplace
Some artists and record labels consider music NFTs to be “The Next Big Thing” in the music market. Warner Music Group (WMG), one of the top 5 music labels in the world, announced on Tuesday a partnership with startup LGND.io to create a joint NFT music marketplace.
After the transformation of the music industry as a result of the digitization of the music market, Warner Music is one of the first labels trying to shoot the market for music NFTs. Additionally, select artists under contract with WMG should be able to publish digital collectibles. The NFT music collectibles offered on LGND Music are said to be based on the Ethereum blockchain.
We give you: PUNX
10 years of friendship led to this moment. We are excited to introduce a conceptual music/art project partially inspired by our own @cryptopunksnfts.
— 3LAU (@3LAU) December 6, 2022
According to the label’s statement, the albums and singles produced will then be offered in the LGND Music App and the corresponding desktop application as Music-NFT or “Virtual Vinyl”.
Among the artists chosen are DJ Steve Aoki and 3LAU, who have announced a collaborative “conceptual music/arts project”. Both belong to WMG’s own EDM label Spinnin’ Records. In addition, they are big names within the Web3 community, who stream their music on Web3.
Warner Music and LGND Music’s Web3 platform, announced in early 2023, is now in jeopardy. Music and video streaming is booming in decentralized streaming networks in one of the biggest crises in the crypto market. And Ethereum is poised to become the most important blockchain in this market.
On Royal.io, users can invest in music and earn money from every stream
Justin Blau, aka 3Lau, is also the owner of NFT music marketplace Royal.io, which features notable artists such as Nas, Diplo, and The Chainsmokers. But in the meantime, lesser-known artists have a chance to release their music on Royal.
Royal’s main difference from traditional music streaming services is the ability for users to buy shares in songs and albums, earning royalties on streams and downloads.
The artists, singers, songwriters and producers can sell shares in their releases in the form of tokens. Unlike Spotify, Apple Music, Deezer and Co., Royal pays not only the artists and music labels, but also the users.
Windows implements Ethereum-based NFTs in its music player
Another company looking to join the NFT music market is Windows, specifically Winamp – the good old desktop media player. The application, which many forgot during the streaming boom, will be the first to support ERC-721 and ERC-1155 and thus be able to read Ethereum and Polygon NFTs.
All the 83 million Winamp users have to do is download the latest software update. They can then use their Windows PC, laptop or tablet to play audio files embedded in NFTs.
Only those who manage their NFT music library through MetaMask need to connect their wallet to Chrome, Brave or Firefox browsers first. The playlists should then be playable in the form of .m3u files.
Winamp CEO Alexandre Saboundjian announced a few days ago that his company plans to create a cross-platform service that “connects artists and fans directly” by the beginning of 2023. He gave no further details on what the this connection and how it should differ from other services.
NFT: a digital asset and community building tool
NFTs are a digital asset, whether music or art. They enable their creators to build a community around their artwork. The artist receives his income from the sale of NFT and the collector receives ideal and material value with the NFT. Owning a music NFT also rarely comes with access to live performances, exclusive merchandise items or face-to-face meetings with the artist.
But the connection between users and artists is not the only thing that distinguishes music NFTs from music streams. The income opportunities for the artists, who are often in the last tier when it comes to distributing streaming income, are different. Music NFTs enable artists to turn their singles or albums into digital works of art and package them in a customized way.
The classical music labels earn money from all mainstream music, although they don’t have to acquire blank CDs or be responsible for delivery to electronic stores. The actual work of a record company falls away. Warner, Sony, Universal and Co. are basically banks. which pays advances used by artists to pay for video production and the sound engineer. And instead of interest, they get their percentages from streams, physical sales, and concerts.
It could also be said that the big international music labels are to the world of young music, shaped by generations Y and Z, what commercial banks are to the world of DeFi: a necessary evil (still).