NFTs are distinctive but has no utility. However, 3D avatar has utility by itself with motion capture technology. We can scale the value of avatar by lending to others and can reward the original creators through revenue shares.
When building a marketplace of avatar, reviewing is one of the most important part (as App Store) to control quality, verifying original creator, and scarcity. VRChat has been failed on this because they open the ability to upload an avatar to anyone without any restriction. So they are suffering from hacking and ripping avatars.
More and more people would own their own avatar and the ability to create an (distinctive) avatar would become important.
https://fivars.net/fivars-in-fall-2021-selections-list/