The popularity of DeFi, NFT is afraid that it will not be able to catch it
With the gradual cooling of DeFi, people in the currency circle began to look for new stories. What stories can be told recently.
People in the circle are reluctant to accept the fact that they have been run over by the wheels of DeFi, and are actively looking for or in other words, actively creating new things that can continue the popularity of DeFi.
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(Data source: NonFungible.com)
Let's first take a brief look at NFTs. NFTs (non-fungible tokens) contain identification information recorded in their smart contracts. It is precisely because of this information that they are different from each other, so each non-homogeneous token is different and cannot be directly replaced by other tokens, nor can it be exchanged with each other like other tokens, just like there is no such thing in the world. Two identical leaves are the same, and the minimum unit is 1, so they are inseparable. In contrast, fungible tokens can be simply exchanged for each other, or can be divided, like BTC can be divided into 0.001 for transfer. To put it simply, NFT has unique, scarce, and indivisible characteristics. It is precisely because of these characteristics that NFT has stronger private property attributes.
NFT, which has always been tepid, has entered the market with lightning speed this year through the skyrocketing pineapple (MEME). What is interesting is that the original intention of this project is to satirize the influx of "5-minute DeFi projects" in the market. What is even more unbelievable is that Pineapple, which built a community in an hour and issued tokens in half an hour, generated a cumulative transaction volume of over 1.2 million US dollars within 24 hours. It has to be said that the power of the masses is great, and the participants who got the pineapple airdrop ate the pie that fell from the sky without stretching their hands.
The unexpected wealth information began to spread rapidly in the circle. The price of pineapple soared to 1930.2 US dollars in a short period of time. It took less than a week to go the way of Bitcoin for nearly 10 years. Pineapple cards were even more eagerly collected. The industry-level impact of this incident is the continuous innovation of DeFi+NFT. As a result, various artworks and collectibles with NFT tags have also entered the trading mode. Currently, the 21st work (Block 21) of the blockchain artwork "Portraits of a Mind" series was sold at a price of over 130,000 US dollars , setting the highest record in the history of NFT auction prices. With the popularity of NFT, its types are becoming more and more abundant. "Batman" and "NBA" have also launched collection cards with NFT. There are various signs that NFT seems to be taking over the heat of DeFi.
The attributes of NFT do have a natural fit with artworks, collectibles, games, etc., but it seems too early to talk about taking over DeFi. Uniswap and OpenSea, which are both top projects of DeFi and NFT, have data from Dapp.com as of October Looking at it, the active users are 300,000 and 24,000 respectively. It can be seen that NFT is still a very niche existence, and at the same time, it is far from DeFi in terms of liquidity. The size of the non-homogeneous token market is only 2% of the DeFi market size. The unexpected "breakthrough" of NFT this time is nothing but market speculation brought about by the high yield of liquidity mining.
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(Data source: NonFungible.com)
Just like the art collections in the traditional field, it is only set for a small number of people. The popularity of NFT has to be extended from the application field. Although NFT has been strongly promoted as a hot spot this year, it is worthy of our attention from the perspective of the entire industry. The most important thing is that there is a scene expansion, from the initial games, collectibles, works of art to intellectual property rights, digital rights confirmation, identity authentication, electronic ticket storage and other aspects of thinking, indicating that NFT is also exploring more possibilities, and at the same time It also needs a healthy environment for development.
At present, for the market, there is still an atmosphere of "speculation". NFT needs heat and attention, but excessive heat will push it to the forefront, and it is not advisable to encourage it. The market needs to be calm. At the same time, the development and exploration of technology also need repeated market verification and practice. Ma Yun said at the just-concluded Shanghai Bund Financial Summit, "Innovation requires a price," but we don't want this price to be a huge bubble triggered by speculation.
NFT may not be able to handle the popularity of DeFi. There are infinite possibilities for the future development of NFT, but there is still a long way to go.
What more stories could be told? Or, what story are you looking forward to.
