2021 NFT year inventory of the top ten NFT projects in the circle

For cryptocurrency investors, this year has become a veritable “NFT year”. In fact, the concept of NFT has been around for several years, but it has only recently officially “out of the circle” relatively speaking. This has also further promoted the rapid growth of NFT-related projects. The end of the year has come, and the “Bi Tweet” team will carefully analyze this phenomenon-level wave and review the ten hottest and most profitable NFT projects in 2021.

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First of all, what is NFT?

Non-homogeneous tokens (NFT) are encrypted assets in the blockchain, with unique identification codes and metadata, so they can be distinguished from each other. Unlike ordinary cryptocurrencies, they cannot be traded or exchanged on the basis of the same value. This distinguishes them from homogenized tokens, which are equal in value to each other and can therefore be used as a medium for commercial transactions.

NFT is currently one of the encryption technologies with the most potential to be widely used in the real world. For example, they are ideal carriers for the digitization of physical assets such as real estate and artworks. Since NFT is based on the blockchain, NFT can also be used to eliminate intermediaries in the process of non-homogeneous commodity transactions, and to strengthen the bond between content creators and their fan (consumer) communities, allowing content creators Can better benefit from their own content creation.

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Most of the current NFT market revolves around collecting narratives such as digital art, cards and rare items. A typical example is the NBA Top Shot platform, which collects a large number of unique moments related to the NBA in the form of NFT. Some of these cards have even sold for millions of dollars.

Another interesting use of NFT is to record landmark events in the modern Internet and crypto markets. Twitter CEO Jack Dorsey posted a link to a tokenized version of the first ever tweet on Twitter. The NFT version was sold for $2.5 million.

Like physical currencies, cryptocurrencies are homogeneous, which means they have good liquidity (easy to buy and sell) and are easy to exchange. For example, one bitcoin is always equal to the value of another bitcoin. Similarly, one Ethereum is always equal to the value of another Ethereum. This feature of interchangeability makes cryptocurrency inherently suitable as a liquidity tool in the digital economy.

NFT creates a new model by making each token unique and irreplaceable. In addition, in some cases, NFTs can be combined with each other to create new digital objects with other unique identifiers. This provides a lot of possibilities for its gamification.

Most NFTs based on the Ethereum network are ERC-721 tokens. The code is different from the ERC-20 token code, which is usually used to create interchangeable tokens based on the Ethereum network. The main difference is that ERC-721 tokens are unique. The most important technical parameter is tokenId, which can be used to distinguish different NFTs.

Why is NFT so popular?

The ERC-721 standard was invented in September 2017, but the concept of “unique digital objects” has been widely discussed in the encryption community at least a few years ago. In 2018, the CryptoKitties project triggered the first wave of NFT craze visible to the naked eye. This is an early chain game in which users exchange related NFTs with the theme of “cats”. And its main feature is the ability to “breed” virtual pets by combining and creating new tokens.

CryptoKitties sparked a craze for “cat raising” at the time, so that more than 11% of all transactions on the Ethereum blockchain were carried out through the project’s NFT, and during the peak transaction period, it caused multiple network congestion. It can be seen. The most interesting thing is that CryptoKitties is not the first NFT project. The title of the first NFT project belongs to CryptoPunk. It almost crushed CryptoKitties in terms of transaction volume, although the real outbreak period of CryptoPunk is 2021. So, what is the reason why NFT can spread like a virus? Here, it has several absolute advantages worth emphasizing.

  • Unique: Holding NFT is the same as holding certain collections in the real world. From a code point of view, it is the only one.
  • Cannot be tampered with: The data about the NFT will be recorded on the blockchain and cannot be deleted or tampered with.
  • Scarcity: There are relatively few instances of the collection of NFT tokens (for example, the CryptoPunk series has only 10,000 NFTs).
  • Digitization: Thanks to NFT, almost any physical object can pass through it and be bound to the information in the blockchain, giving it additional value.

     

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In 2021, the advantages of NFT will greatly attract the attention of a large number of investors. Because of this, in just a few months, NFT-related projects have also shown unprecedented returns. “Bi Tweet” will take you through the 2021 “NFT Year”.

Top 10 NFT projects in 2021

Let’s take a look at the most popular series of NFTs, exchange platforms and other projects related to new trends. The rankings are in no particular order, randomly arranged according to the editor’s creation.

NBA Top Shot

NBA Top Shot is a platform created by Canadian blockchain company Dapper Labs in cooperation with the NBA, allowing users to collect some of the best moments in the NBA in the form of NFT. To get the so-called “moments”, users can purchase the corresponding suit, or even simpler, directly buy the “moments” opened by the player on the secondary market.

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These “moments” have varying degrees of rarity, and their value depends on the following laws:

  • Normal (normal, represents the moment when there are more than 1000 digital copies): They can be purchased in the form of a normal set, such as 9 moments at a price of 9 dollars.
  • Rare (rare, 150-999 digital copies): These moments can be found in the rare set, the price starts from $22, one has seven ordinary moments and at least one rare moment.
  • Legend (Legend, 25-999 digital copies): These can be found in the Legend set, starting at $230.
  • Platinum Ultimate (Platinum Ultimate Edition, 3 digital copies): Only available through auction.
  • Genesis Ultimate (only 1 digital copy): Only available through auction.

In just two years or so since its establishment, the number of active users of NBA Top Sho has surpassed the 1 million mark. At the same time, the transaction volume of the unique moment of the basketball game in the year exceeded the level of 1 billion U.S. dollars. Many tokens from the NBA series have increased in value dozens of times since the beginning of the year, and their prices continue to grow with the popularity of NFTs.

CryptoPunk

In 2017, Larva Labs founders Matt Hall and John Watkinson created a program that generated thousands of different pixel images. At first, they thought they had created a prototype of a smartphone application or game. But this simple project finally opened up a new path for the digital art market and challenged the concept of “ownership” in the encryption field for the first time.

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CryptoPunk is a 24×24 pixel art style image collection. There are a total of 10,000 tokens, each with its own personality and unique, randomly generated combination of characteristics. There are 6,039 male “CryptoPunk” and 3,840 female “CryptoPunk”. They are distinguished based on different characteristics, such as hair color, whether there are accessories, and so on. There are also eight punks without any distinctive features, sometimes they are also called Genesis punk (Genesis punk).

There is a composite picture of all 10,000 copies of “CryptoPunk” on the Larva Labs website. Each NFT also has its own details page, which introduces its characteristics and all transaction history in detail. Anyone can save a copy of the image file, but only one person can own the corresponding NFT, because each NFT ownership of CryptoPunk is established in the Ethereum blockchain code.

The CryptPunk created by Matt Hall and John Watkinson is sometimes compared to owning a physical artwork on permanent loan to a public museum. Therefore, CryptoPunks, as a pioneer in the NFT world, deservedly gained considerable popularity and matching value.

Rarible

Rarible is an NFT trading platform based on Ethereum. Although Rarible was launched as a centralized platform, its creators plan to gradually decentralize it over time and eventually transfer control to a decentralized autonomous organization (DAO), managed by the Rarible community . Rarible plans to achieve this through its RARI governance token, which empowers users to participate in the management of the platform. In 2021, Rarible announced that it will launch Flow, a fast, decentralized and developer-friendly blockchain (public chain) from Dapper Labs (CryptoKitties development team). Designed to host decentralized applications and achieve fast transactions.

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To use Rarible, users need an Ethereum network wallet, such as Metamask, Argent or Coinbase, and some ETH to pay commissions. Users can purchase ETH directly on the platform with a credit card. After linking the wallet, users can browse the NFT Rarible trading platform to find their favorite NFT. The platform divides NFT into different categories such as pictures, games and meme for investors to search.

In addition, for groups of artists or creators, they can use Rarible to directly create their own NFT. When creating an NFT for the first time, Rarible users must pay two fees-one is the permission fee for their wallet to interact with Rarible, and the other is the fee for “calling the coin function”. In short, it will put the creator’s files Into the inter-platform file system (IPFS) and the Ethereum blockchain.

Both of these fees are network fees, that is, the cost of interacting with the blockchain, which does not itself count as platform revenue. After the first authorization, users who want to create a new NFT will only need to pay a gas fee, and the fee will vary according to the load of the Ethereum network. When a creator decides to sell his NFT, the Rarible Art trading platform allows the creator to earn a certain amount of NFT transaction fees from subsequent sales, so that the creator can truly benefit from their work.

OpenSea

OpenSea is another decentralized trading platform that allows users to buy and sell NFTs. OpenSea was established in 2017 and was initially mainly used for the trading of CryptoKitties NFT, but then the scope of services has gradually expanded. OpenSea now supports quite complex types of digital assets, including NFTs for artworks, domain names, game projects, music, etc.

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OpenSea is built on the Ethereum blockchain, so users must also have an Ethereum wallet to use the application. OpenSea also supports several other blockchains, including Polygon and Klaytn. Users can choose 241 payment methods, including stablecoins, so almost anyone can buy and sell digital items on the platform.

Hashmasks

Hashmasks is a virtual artwork created by a team of 70 artists in collaboration with Suum Cuique Labs. Each “Mask” has a unique feature, the most striking of which is skin tone, personality and eye color. Hashmask is different from other ordinary NFT paintings because each mask has no name. The owner of the token is responsible for naming their Hashmask and thus participating in the production process of the artwork.

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The creators of this project have produced 16,384 NFTs and related images. These masks also have huge differences in value. The most expensive transaction in this batch of NFTs was a mask sold for 420 ETH (approximately US$1.69 million).

Enjin

ENJIN was registered in Singapore in 2009, the so-called “Classical Internet Era”, and launched a game community platform called “ENJIN Network” at the beginning of its establishment. At present, its global users have exceeded 20 million, and its game communities have exceeded 250,000, including e-sports teams, game servers, fan sites, and Cosplay clubs.

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In 2017, ENJIN officially entered the encryption field, and aimed to build the infrastructure of chain games, Metaverse and NFT.

Enjin Coin (ENJ) is the native token of the project. It has approximately 835 million ENJs in circulation, and the maximum limit is 1 billion. From January to April this year, ENJ saw a huge increase, and its price rose from 14 cents to 3.46 US dollars in just a few months.

Enjin currently has a large user community. The success of the platform is due to the dramatic rise in popularity of NFT and Metaverse. These fields will dominate the crypto market in the next stage, so the future demand prospects of the platform will be limitless.

Flow

Flow is a decentralized ecosystem and blockchain-based platform with scalable solutions for interactive interaction, decentralized application projects and chain games. Flow network focuses on providing a scalable environment and architecture to achieve fast transactions without congestion, creating fertile ground for NFT, dApps and games. The Flow team also participated in the development of the NBA Top Shot mentioned in the previous article.

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Flow solves the scalability problem currently faced by Ethereum without using sharding, and the Flow network is also based on the PoS (Proof of Stake) consensus mechanism. In this way, Flow can ensure the smooth operation of the entire network and minimize network congestion for dApps and games.

Flow distributes the work on the network to the nodes that support the system, and different nodes are assigned different tasks according to their technical capabilities. By separating the non-deterministic process (such as forming a transaction into a block) from the deterministic process (such as executing the transaction block), the throughput of the blockchain is increased.

In order to reduce the load on the Ethereum network, Flow uses a multi-role multi-node architecture. In order to enable the expansion of the entire network to be carried out in an effective and economical manner, Flow uses the four roles of network participants to decompose the block verification process and assign different tasks to different types of nodes.

Decentraland

Decentraland is also a Metaverse project based on the Ethereum network, aiming to create a global Metaverse.Decentraland users can explore, interact and play games in this virtual world, as well as buy and sell digital real estate. Over time, the platform has now implemented interactive applications, internal payments, and even a virtual communication and other services.

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Decentraland uses two types of native tokens.

  • LAND, which is a type of NFT, is mainly used to determine the ownership of land representing digital real estate.
  • MANA, which is the circulating token in its system, facilitates the purchase of virtual goods and services used in LAND and Decentraland.

Axie Infinity

In “Axie Infinity”, players win the SLP currency in the game by buying, breeding, and fighting against monsters called Axies.This business model is called “Play to Earn”. Players earn real rewards by playing virtual games for time.

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Each Axie is a kind of NFT and collectible items that can be bought or sold on exchanges outside the game. Players must have at least three Axies to start fighting, and the cheapest Axie currently sells for about $200. The most expensive Axie was sold for 300 ETH as early as 2020.

The viral spread of the game on the Internet helped the development studio Sky Mavis earn tens of millions of dollars this year. The company received $700 million in revenue from in-game transactions, of which 17% is owned by the developer. It is estimated that by the end of this year, its total circulating capital will stabilize at more than US$1 billion.

The game developer recently raised US$152 million in Series B financing, led by Andreessen Horowitz (a16z), valued at US$3 billion. Since the company does not own all the tokens of Axie Infinity, its valuation is lower than the market value of its currency. Sky Mavis stated that it will use the new capital to launch an improved combat system, a decentralized exchange, and a new game.

The Sandbox

The Sandbox is a Metaverse and game ecosystem based on the Ethereum network. Users can create, exchange, and monetize resources and game experiences in a virtual world. Pixowl’s project will subvert the game industry. In the traditional game industry, the platform owns and controls user-generated content, and the rights of creators and players are restricted. In the sandbox, users fully own their virtual items.

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The project consists of three key parts.

  • VoxEdit: Allow users to create and animate 3d objects in the Metaverse. These objects are called assets and use the ERC-1155 token standard, allowing the creation of homogenized and non-homogeneous tokens using a single smart contract.
  • The Sandbox Market: This is a market where users can publish and sell their assets after uploading their assets to the InterPlanetary File System (IPFS) for the first time.
  • Sandbox game production: Allow users to create 3D games for free.

Although participating in the sandbox does not require any programming knowledge, its powerful toolkit allows users to create and embed valuable assets in the rapidly growing field of online games and virtual worlds. This is the main reason for its native token SAND to hit a record high in 2021.

Summarize

Before the advent of NFT, objects in the virtual world had no basic value simply because of the fact that they existed. In other words, an ordinary computer file can be copied many times without changing its attributes in any way. With the emergence of NFT, people can monetize virtual content, which has created the foundation of a new era of blockchain networks. Therefore, NFT has become a very independent field of the digital asset industry. It is believed that in the near future, NFT will play a pivotal role in the new world economic system.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/2021-nft-year-inventory-of-the-top-ten-nft-projects-in-the-circle/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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