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What Is Dynamic NFT and Why Is It a Trend?

08 Apr 2022 updated
11 min

Table of content

The blockchain world has gone crazy about NFTs. The static NFT art has attracted billions of dollars from retail and institutional investors within only one year. Its growth is expected to continue at 10%+ every year until 2030, promising more revenue for artists and collectors. 

Still, with all its appeal as an innovative market niche, the NFT world has two serious bummers. One is proving the unique NFT ownership (yes, they are prone to a “copy and paste” crime) and the other one – moving NFTs across blockchains. 

As an NFT development company, we often encounter this, so here we introduce the concept and explore its promise to all NFT fans.

Dynamic NFT

Static NFTs vs. Dynamic NFTs

Static NFT Dynamic NFT
Isolated from the off-chain environment Interact with the off-chain environment
Static; cannot be moved across chains Move across chains (e.g., the RareLink bridge between Ethereum and Polkadot)
Don’t respond to the real-world events Dynamically respond to real-world events

Static NFT collections like Bored Ape Yacht Club, CryptoPunks, and The Sandbox trade for hundreds of ETH a day, showing users’ interest and belief in the future of the NFT market. 

But times are changing too fast today. Now, the NFT world has something new on offer. It’s the dynamic NFTs coming to reshape the NFT market landscape forever. 

Some dynamic NFT examples that have made splashes in the crypto market are merge. and OG:crystals. Many experts bet that dynamic NFTs will become the next big thing in 2022. So, it’s time to find out everything about dynamic NFT creation and grab a piece of this rapidly evolving market. Here’s a quick look at the difference between these two NFT types clarifying what is dynamic NFT

Read Also: NFT Marketplace Development Process Guide

Benefits of Static NFTs

The NFT market boomed for a reason, reaping over $18 billion in total sales in 2021. Static NFTs are a unique form of blockchain assets, possessing permanently immutable traits and static recorded on-chain data. Let’s recollect that immutability is what blockchain is praised for, giving users a unique medium for manipulation-proof data storage and scam-proof transactions with other users.

Benefits of Static NFTs

Benefits of Dynamic NFTs

Benefits of Dynamic NFTs

Dynamic NFTs have a fluid smart contract allowing the NFT to evolve with time in response to real-world events. This property can be applied in different ways, allowing users to move NFTs among different blockchains and even changing their outlook upon the change of ownership. Dynamic NFTs also have multiple use cases, from ticketing to P2E game unit exchange to real-life fantasy sports. Besides, dynamic NFTs are expected to possess the verifiable randomness function (VRF), like in the dynamic Shield NFT available on Solsea. 

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Why Are Dynamic NFTs Important?

As the NFT world evolves, dynamic NFTs represent the next generation of technology solutions. The VRF feature of dynamic NFTs allows authenticity verification and guarantees the randomness of in-game item allocation. Thus, P2E gamers will enjoy fair and random distribution of rare assets and power rankings during in-game campaigns and engagement activities.  

The major benefit of dynamic NFTs is their ability to evolve based on the real-world data changes delivered to the blockchain via oracles. For instance, you might have an NFT card with a baseball player. Once they become a champion, your card can also display the title of your idol, changing its code based on the real-world input. 

Enhanced authenticity in dynamic NFTs thus makes them applicable in various areas. For instance, you can have an NFT instead of a passport, traveling across the globe without paperwork and stamps. All changes are reflected in the NFT’s code with no chance of fraud or scam. The same can be done for banking accounts, educational certificates, insurance, and any other documentation that gets instantly updated once you input new data. 

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Smart Contracts that Change Your NFT

The core of static and dynamic NFTs is their smart contract code enabled by a specific blockchain you’re using. A smart contract is an automatic, self-executing blockchain artifact that contains all conditions of specific actions or the essential data about an item. Today, creating a Solana dynamic NFT or an NFT on another blockchain is not that hard, as most of the work takes place in the bridges and oracles. Their function is to connect dynamic NFTs with the external environment and track the data updates that matter for the NFT’s code, function, or appearance. Thus, your task is to partner with a reliable smart contract developer and create secure, error-proof NFTs. 


What is a dynamic NFT?  

In simple words, this type of NFT contains characters and data in its smart contract code that can evolve based on the input from the external environment, like the dynamic Duelers NFT collection available at OpenSea. This feature is critical for NFTs’ movement across blockchains through oracles and bridges, as static NFTs are chain-based and cannot be used off-chain. This shift from static to dynamic NFTs is thus instrumental for achieving better cross-chain interoperability. 

How to create a dynamic NFT?

The question “how to create a dynamic NFT” worries many forward-thinking NFT fans and artists today. You can find a dynamic NFT tutorial online or get the source code for dynamic NFT smart contracts directly from the blockchain developers of your preferred chain. Thus, you can find dynamic NFT Solana or dynamic NFT Ethereum manuals to jumpstart this business and launch a profitable collection in one of the popular marketplaces. 

Are dynamic NFT projects profitable?

There are many appreciators of NFT dynamic art as the industry continues growing in leaps. Just imagine: the NFT market was a bit more than $80 million in 2020, while in 2021, the market size exceeded $17 billion. That’s a whopping 21,000%+ increase in just one year. Thus, 2022 has much in store for dynamic NFTs and their fans. If you create dynamic NFT collections, you will reap a substantial profit from them in 2022 as the market’s interest in this new trend rises. 

How to make a static NFT dynamic?

Overall, the static NFTs that have already been created and deployed to the NFT marketplaces are not changeable. This means that they will never turn into dynamic NFT art. These works are final, meant for collection and exchange in their current form. You can only break down the entire NFT item and recreate it using dynamic smart contract code to make it changeable in response to off-chain data updates. Look at the OpenSea dynamic NFT works to see what they look like and follow the lead. 

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