Will NFT be the next growth driver of the encryption market?
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1. What is NFT?
MEME creatively combines NFT and DeFi, and its strong performance has driven the public's interest in NFT. NFT (Non-Fungible Token) refers to non-homogeneous tokens. Each token is unique and is mainly used in games, artworks, domain names, collectibles, and real asset certification (STO). It's art and games.
Since digital assets such as game equipment can be copied infinitely, there is no scarcity and it is difficult to generate greater value. Using blockchain technology to provide NFT solutions can guarantee the scarcity and uniqueness of the digital asset.
MEME originally originated from a joke. Jordan Lyall, head of DeFi products at ConsenSys, released a spoof project to mock those DeFi meme projects that started in 5 minutes. So some good people quickly created MEME tokens based on his joke, with a total of 28,000, of which 26,000 were used for airdrops, and the remaining 2,000 were used to create the ETH/MEME mining pool.
Users can earn MEME (Pineapple Points) by staking assets. When there are enough Pineapple Points, they can be exchanged for a limited edition NFT.
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2. The current development of NFT
NFT is still a niche market in the world. Except for a few collectors who advocate the value of encrypted art, most friends who pay attention to the blockchain field know about NFT because they participate in DeFi liquidity mining.
Game entertainment, digital collectibles, artwork, and insurance are fields that are naturally suitable for NFT transformation.
Crypto art trading platforms include Wrapped Cryptopunks, SuperRare, Async Art, MakersPlace, etc.
Digital collectibles platforms include CryptoKitties, Artfinity, Avastars, Blockchain Cuties Universe, and more.
Well-known projects in the field of games and entertainment include The Sandbox, Decentraland, Somnium Space VR, Enjin, Chiliz, etc.
In terms of insurance, there are yinsure.finance, Rarible, etc.
Among them, encrypted artworks have achieved good development results. In the past week, the turnover of NFT works traded through MEME exceeded 270 ETH.
On the SuperRare encrypted art market, artists from 178 countries and regions around the world have earned more than 2 million US dollars, and the first artist who created 100 works and collected 100 works on the platform was also born.
On September 22, SuperRare released last week's "Art Market Weekly Report", listing 10 works with a transaction price of more than 1,600 US dollars. The number one was created by Matt Kane and collected by Estheet No. M87 " "Black Hole Deconstruction", the selling price reached 6701 US dollars, and the profit was as high as 4553%.
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3. Future value judgment of NFT
According to Lark Davis, host of The Crypto Lark and cryptocurrency investor, NFT will unveil the next big event in the encryption field, which may trigger a substantial growth of 100 times. As the crypto market grows and expands, it will continue to offer new and profitable opportunities, and it's worth keeping an eye on!
However, we also need to see some problems currently faced by NFT:
1. Insufficient infrastructure, lack of various functional agreements, and high learning and participation thresholds for ordinary investors;
2. Driven by speculative demand, project tokens fluctuate greatly in the short term, and market speculation cannot support the real value;
3. The overall market represented by art collections is not big, and there is an urgent need to cultivate new areas to make the cake bigger.
In general, the NFT infrastructure is still under construction, and a complete functional protocol stack and application platform have not been formed. Speculative demand also lacks value targets, and the current user base and demand are still too small.
NFT has a good prospect of driving encrypted assets to the real demand, and can carry richer and unique asset value. In the future, NFT is also likely to become an important part of the Internet. Whether its development can be as expected, I believe that after time The baptismal market will give the answer!
