Have you ever seen an NFT with an annualized rate of return of 10800%?

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Bored Ape Yacht Club 

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《Cryptopunk #7523》

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The number of independent wallet addresses that have traded NFT from September 2020 to the first week of June 2021, data source: NonFungible

Taking the daily trading volume of OpenSea, the world's largest NFT trading platform, for the past three months as an example, it can be observed that since mid-May, the NFT market trend in June has indeed continued to decline.

But looking back at the NFT news in the past week or two, more authoritative institutions and individuals are casting real-world items into a series of NFTs, which have surpassed the well-known art forms, involving codes, cartoons, academic papers, history Collectible digital assets such as news, event tickets, etc.:

• Fox Entertainment will spend $100 million on an animated NFT series driven by a show from the "Rick and Morty" creator's Krapopolis.

• Sir Tim Berners-Lee, the father of the World Wide Web, is selling the original code that established the modern Internet system in the form of NFT. The code has a total of 9,555 lines and is of great collection value. The starting price is $1,000.

• CNN launched a collectible news historical moment NFT, casting a series of iconic moments including space and elections in the past 41 years into NFT for purchase.

• The owner of the Dallas Mavericks said that NFT tickets will be issued for the Dallas Mavericks games next season, which will create more value for them.

• The University of California, Berkeley will cast two Nobel Prize-winning papers into NFT auctions. They are all major biological breakthrough research in the 21st century, and the proceeds will fund the education and scientific research of the branch...

I believe many people will have this question: Unlike NFT artworks that have the function of anti-counterfeiting and confirmation of title, these things seem to have nothing to do with NFT, why should they be made into NFT? It can be directly auctioned.

The discussion about when the bubble in the NFT market will burst has not stopped, but more information seems to prove:The stage of "everything can be NFT" has arrived-more people have accepted and affirmed its necessity as an asset allocation, rather than its feasibility. 

In other words, the "radiation range" of collectibles in the NFT ecology is widening. Various categories of items that exist in reality can be cast into NFTs. They themselves do not need to have any connection with NFTs, as long as they have group recognition. Can. Ways of storing value and digital ownership on-chain are being formalized more broadly.

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The trading volume of NFT collectibles surpassed that of artworks in the first quarter of 2021

According to the NonFungible report, judging from the NFT trading market in the first quarter of 2021, among the current six usage categories of collectibles, artwork, games, virtual world, sports, and utility, collectibles and artworks occupy an absolute advantage — Contributed up to 91% of transaction volume (48% and 43% respectively).



And judging from the development of various categories in the first quarter, the collectibles category has grown rapidly, leading the entire industry to reach a new height. The total transaction volume in one week exceeded 170 million US dollars. The Cryptopunks mentioned above is the most popular project, ranking first in the track of Ethereum NFT series works, with a total historical turnover of more than 350 million US dollars.



You may ask: What is the difference between NFT collectibles and NFT artwork? Collectibles here specifically refer to series of works similar to CryptoKittes, NBA Top Shots and Bored Ape Yacht Club. NFT technology is used to represent the ownership of collectibles. They often have formed IP influence and are considered to have a high appreciation space .

The artwork category specifically refers to digital artworks that are continuously minted and bought and sold on encrypted art platforms such as SuperRare, MakersPlace, and Nifty Gateway around the clock. These digital artworks cannot exist without NFT (because an NFT must be minted). Their investment professional threshold is relatively high, and the number of users accepted is relatively small.

This also explains why NFT has frequently attracted the attention of more official institutions and celebrities recently, and market behavior has shown stronger investment interest in digital assets with strong consensus, even surpassing the works of art of artists.It can even be said that consensus itself is the most promising application "category" of NFT. As long as something has fans, it does not even need to have any connection with NFT, it can be cast as a "digital souvenir" for trading. And the person who buys it, even if he can only get a signature on the blockchain, but does not own the copyright or other rights of the item, is willing.

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Fragmentation, decentralized storage, NFT+DeFi

At present, metaverse games, artworks and collectibles constitute the three major application scenarios of NFT technology. Especially in 2021, due to the high auction price of artworks, where are more usage scenarios in the future? There are three major technological solution trends as follows:

1. Fragmentation

If a famous artist wants to cast his $1 million worth of artwork on the chain as NFT assets, he will not only have to pay a high "intermediary fee" to the trading platform, but this also discourages many buyers.

But if this work is divided into 1,000 copies, each of which can be purchased by different interested parties, the fragmented NFT reduces the transaction threshold and also promotes the liquidity of NFT works.

2. Store NFT

According to some analysts, through the analysis of the storage URLs of a large number of NFT platform works, 70% to 80% of the works have not been completely decentralized and stored on the chain. Even on a platform like OpenSea, there are still pictures and videos corresponding to NFTs that are actually stored in a centralized http address, which means that buyers do not actually buy assets on the chain. So once the website is hacked, or the site is closed, these digital assets will be permanently lost, and the seller will not make the same compensation for you.

Of course, when casting NFT, you can also choose the storage method, allowing third parties to upload content to decentralized protocols like IPFS, but the steps are complicated, time-consuming and more handling fees-this is what NFT is currently facing. Core storage technical challenges.

3. NFT+DeFi

According to analysts in the industry, NFT lending has become the next explosive point in the field of decentralized finance. 

If you have purchased a piece of virtual real estate in the on-chain game community Decentraland or The Sandbox, then you can mortgage this real estate asset and lend USDC in the DeFi protocol to pay the down payment for the real house. Or if you have purchased a certain limited edition skin in the Metaverse game, you can also lend it to others through the DeFi protocol and earn income from rent.

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NFT can be mortgaged and lent on NFTfi

The above three application trends are being intensively developed and solved by different technical teams, and will not be mentioned in detail here due to the large number of projects.

There is no doubt that more and more real items have a close reason to be cast into NFT. Whether it is artwork, collectibles or game identities and assets, the era of "everything can be NFT" is no longer an attention-grabbing It is already effectively meeting the public demand for multi-asset allocation, shifting from creating an NFT to using this NFT.

What kind of high price will NFT be auctioned in the future, and what kind of new landing products will be created? Please continue to pay attention to the Wootrade official account, we will interpret it for you as soon as possible.