NFTs have already invaded the crypto world, astounding artists, collectors, and investors alike. But there’s a new trend that’s generating even greater curiosity among enthusiasts: NFT staking.

If you’ve never heard of it, imagine locking up your digital collectibles to earn rewards—almost like getting interest on a savings account, except with pictures of rare creatures or virtual plots of land. Gary Vaynerchuk famously said, “NFTs are going to be here forever,” and if he’s right, then staking these tokens could be one way for all of us to ride the next wave of innovation.

Join our expert in explaining NFT staking, explaining how it works, and exploring the NFT projects with passive income that are shaping the future of this innovative market.

Understanding the Basics: What Is NFT Staking?

Let's take a step back to understand what NFT staking is. Everyone knows how people stake some coins like Ethereum or Cardano. They put in tokens to help validate transactions or serve the network and, in return, receive a share of the rewards.

NFT staking applies the same concept but to digital collectibles. You lock up an NFT into a smart contract on a platform that it's accepted on. Then you start to get rewarded. These may be other NFTs, pieces of the native token of the platform, or even a percentage of fees on transactions.

According to NonFungible.com, “the total amount of NFT transactions was over $17 billion in 2021”. That number in itself indicates that this market is increasing exponentially, and with staking opportunities coming into play increasingly, it is no wonder that so many consider the possibility of NFT with passive income through staking.

Why NFT Staking Matters for Passive Income

Staking is not just dumping your NFT in a pool and hoping to see what's going to turn up. In locking your NFT away, you're using it as an income-generating asset, something that pays out without having to flip it on a marketplace and pray that it gains value. This reduces volatility risk. According to Mark Cuban, "Digital assets will transform how business is done," and staking is part of how that happens.

In the world of DeFi, we're already accustomed to earning yields on tokens. Now we're seeing that same principle apply to game characters and metaverse land plots. Instead of having NFTs just resting in a wallet and gathering digital dust, you can "activate" them and have them work for you.

NFT Projects With Passive Income: Current Trends

Not all NFTs are equal, so in order to earn passive income, you need to watch out for specific types of NFT projects with passive income potential: 

Play-to-Earn Games

Picture blockchain-backed games where players can stake in-game items (like cards, weapons, or characters) to get rewarded. MOBOX and Axie Infinity are just two instances where your digital assets can accumulate tokens with the passing of time.

Virtual Real Estate

There are also places such as Decentraland and The Sandbox that offer virtual land as NFTs. You can develop on these plots, rent them, or stake them in return for a share of platform revenues. It might be odd to own "virtual dirt," but it can open up unique revenue streams.

Utility and Membership Tokens

Other emerging NFTs function as business stocks or VIP tickets. When you stake such tokens, you can get governance votes or a share of fees that the platform collects. That can accumulate over time, turning pure ownership into passive income.

These categories show us how NFTs are being evolved from static collectibles to dynamic assets that pay you back.

NFT in igaming

We've discussed some traditional; avenues to earn with NFT staking, but even more interesting is the possibility to earn as an igamer. In the context of iGaming, NFT staking has become a creative way to keep players engaged while offering new earning opportunities. Some platforms now let users stake their NFTs, turning them into assets that unlock rewards, grant access to premium games, or even open the door to exclusive events.

A few NFT-based casinos take it a step further. Instead of just holding onto NFTs, players can deposit them and use them for gameplay. The potential rewards? More NFTs or even cryptocurrency, making the experience more dynamic and rewarding.

More than just using them to play games, we've found some igaming operators that reward players with very generous bonuses like mystery airdrops and access to the VIP section for purchasing and using the platforms’ own NFTs. 

But even outside NFT staking, igaming provides another opportunity for players to earn from games of skill like poker or blackjack. The interesting thing is unlike before, the internet has now made it feasible to earn full time as a casino gamer as distance and finding players to compete with are no longer a problem. 

Igaming in Hungary as Way to Earn Passive Income

While the internet has made it easier than ever to earn as an igamer, knowing the best operators, games, and strategies are still crucial for anyone following this path. Luckily, this iGaming guide in Hungary contains all the information players would need.

If you're considering making money as an igamer and reside in Hungary, then there's no better place to be. That's not only because Hungary has very favorable igaming laws that allow for many different online casino operators with highly competitive offerings but also due the strong igaming culture in the country that makes it easy to learn the ropes and start earning right away.

How to Earn Passive Income With NFT Staking

If you're thinking, "Yes, I want to earn passive income with NFT!" Let's discuss the general process. We wouldn't want you to proceed blindfolded:

Select a Reputable Platform

Do your due diligence always. Platforms that have proper documentation, active communities, and audited smart contracts are what you're aiming for. NFTX, MOBOX, and other staking services give clear instructions on staking your assets.

Own or Buy the Right NFTs

Some staking pools only accept specific collections. Make sure your desired NFT is accepted by your chosen platform.

Lock Your NFT

Once you connect your wallet, you'll typically navigate to a "stake" tab or button. Click it, confirm the transaction, and that's it—your NFT is now locked up and working on your behalf.

Collect Rewards

Rewards could come in the form of tokens, additional NFTs, or even a share of transaction fees. Keep an eye on your stake in case you ever need to un-stake and regain access to your original collectible.

Keep in mind that staking, like all crypto exploits, is not without risks—contracts can be hacked and market prices can be highly volatile. It is possible to keep those fears at bay with a bit of due diligence, though.

Potential Yields and Growth Trends

Want some rough numbers? Let's consider three large NFT categories and average yearly yield ranges. Real figures may fluctuate, but this at least provides a rough estimate:

• Gaming NFTs (e.g., Axie Infinity, MOBOX): 10% – 30% yearly yield

• Digital Collectibles (e.g., NBA Top Shot, CryptoPunks): 5% – 15% yearly yield

• Virtual Real Estate (e.g., Decentraland, The Sandbox): 8% – 25% yearly yield

Fact: According to a 2022 survey by Chainalysis, user participation in DeFi (including staking) grew by over 900% in a single year. This indicates a massive shift toward embracing passive income opportunities in crypto and NFT markets.

Watch the Regulations (So You Don't Get Burned)

While the tech side of staking might be exciting, you must be aware that governments are still figuring out how to deal with crypto. Rules might be different based on where you are. If you're in the United States, a great starting point is the SEC's website. If you're outside the U.S., look for your local securities commission. It's always best to err on the side of caution.