All major platforms are laying out Is NFT about to take off?

Since the second half of 2020, especially into 2021, NFT has begun to show the momentum of a full-scale explosion.

All major platforms are laying out Is NFT about to take off?

NFT hot winds rise again
The market has recently gone through a very ferocious life and death test, cutting back again on top of the already substantial pullback some time ago, making the prices of most coins almost back to where they were at the beginning of the bull market in January.

But even in such a panic atmosphere, there are star projects that have been born and have generated a lot of attention in the market with their remarkable performance.

This is the first project APENFT after the relaunch of Firecoin Prime.

On May 20, APENFT (NFT) officially entered Huobi Prime and opened NFT/HT and NFT/USDT trading pairs.

After the launch of trading, APENFT (NFT) performed very brightly, NFT price rose rapidly in a short period of time, NFT/HT rose more than 3200% and NFT/USDT rose more than 1831% within 5 minutes.

It is inconceivable that just a day before APENFT went live, the market had just fallen to the point of despair for many people, yet it could trigger such enthusiasm for investor participation again on the new project a day later.

In fact, APENFT’s surge was due to the market public’s expectations for the development of NFT this year, just like the DeFi boom in 2020, there is a general expectation that 2021 in the NFT segment to re-compensate for not catching the last train of DeFi last year.

Since the second half of 2020, especially into 2021, NFT has begun to show the momentum of a full-blown explosion.

Established NFT projects have been frequently financed, new NFT projects have emerged, and some top public chains and head exchanges have started to lay out.

Take Coinan for example, in April, Coinan has announced that it will officially launch Coinan’s official NFT trading platform in June, which will share the account system with Coinan and existing Coinan users can directly enter the NFT platform for trading.

Before that, Coinan Smart Chain has been actively supporting a large number of NFT projects, such as BAKE, ALICE, SLP, MANA, TLM and so on.

At present, there are 37 projects on BSC Coinan Smart Chain, including creation, auction, trading platform, chain tour, music, tide, collection, etc., forming a relatively complete layout of NFT field.

In addition to Coinan, another head exchange, Firecoin, is also working intensively on the layout of NFT.

On May 17, Firecoin officially launched its own incubated NFT trading platform, iBox, and officially released its first NFT work “iBox 001” at the same time.

The iBox platform was followed by the launch of movie star Chen Xiaochun’s personal NFT works, priced at 199 USDDT, which quickly sold out once it hit the shelves.

On the first day of sale on May 17, all the NFTs on the platform were snapped up, and the enthusiasm of enthusiasts chasing NFTs was evident.

Demand of the times
So many institutions and platforms started to layout NFT at one time, is it a short-lived market speculation or a real future?

Yuan Ruijuan, general manager of FirecoinLabs, believes that NFT is not only a new asset carrying method, but also a new technology application based on blockchain, which may greatly empower the blockchain industry and the real industry in both directions. NFT is a very new way to carry assets, as it can penetrate into every bit of life from issuance to daily use.

From the market retail investors to large institutions scrambling to layout, have proved that NFT is a trendy product in the digital era and will likely play an increasingly important role in the future.

And the reasons for the NFT boom that has recently started to emerge can perhaps be roughly summarized as follows.

Cryptocurrency bull market and investment enthusiasm

The bull market in the cryptocurrency market in 2021 has reignited investors’ enthusiasm for participation. In a generally positive market overall, investors are not only willing to invest in more robust mainstream cryptocurrencies such as Bitcoin and Ether, but also have a high level of enthusiasm for innovative cryptocurrencies in new areas and segments such as DeFi and NFT.

Real alignment with the traditional world and wider audience

NFT is currently one of the most directly connectable and perceivable combination points between the blockchain field and valuable physical objects. In real life, game accounts, original music, videos, handicrafts and even real estate can be categorized as non-homogeneous assets. There are already a very large number of innovative companies or artists that have started to use blockchain technology to issue these tangible assets on the chain in order to achieve a more convenient circulation of real assets or personal works.

Due to the factors of the times, blind boxes are hot among the new generation of post-00 consumers, collectible cards are flourishing among the elementary school student population, and the generation of Internet natives can naturally place digital collectibles on the same status as physical assets, which makes NFT more approachable to life and easy for a wider range of people to understand and thus join in and support the development of NFT.

A more complete NFT trading market

Currently, OpenSea, the world’s largest NFT trading platform, has multiple NFT works completed on the platform and sold every 1 second, and users only need to connect to their Ether wallets to participate in buying NFT.

With the launch of the official NFT trading platform of Coinan in June, users can directly access the NFT platform through the Coinan Exchange App and operate with their current Coinan account.

Two things can be accomplished through one trading account: buying NFT concept coins and buying NFT collectibles. This is a good solution to the problem of disconnect between NFT products and NFT concept coins, and also provides a more convenient channel for ordinary investors to invest in NFT products.

In the crypto world, assets that can generate revenue often come with enough attention from the market, and DeFi, which is similar to decentralized financial Lego blocks, can bring more new ways to play with NFT and make NFT have higher circulation value and revenue, so perhaps the mutual combination between NFT and DeFi will become mainstream in the future.

In general, the combination of NFT and DeFi can bring several benefits as follows.

Enables higher liquidity of NFT

NFT assets can share ownership

NFT can generate income

NFT can be used as collateral

Liquidity of NFT

Collectibles have always had the problem of illiquidity. But with the tokenization of collectibles, rare assets have a greater potential to generate strong enough liquidity. The NFT asset segmentation platform (NFT Fragmentation) now allows for the conversion of ERC721 or ERC1155 into tradable homogenized ERC20 tokens, an innovation that brings unprecedented liquidity to NFT and other collectibles.

The benefit of splitting NFT into homogenized tokens is that it provides a good valuation mechanism for most NFTs as the market corrects the price of the tokens. Platforms like Fractional, NFT 20 and Unicly all help collectors segment their NFTs and create communities around them.

Asset Ownership of NFTs

owning a rare NFT artwork is good, but it is better to create a punk community to share ownership of NFTs. the financialization of NFTs has spawned a new type of community, the NFT DAOS. the first generation of NFT DAOs provided services to manage NFTs as well as artists. the Jenny DAO, called the next generation of NFT DAOs, curates the NFT collection process and focuses on the financialization of these assets. uJenny DAO is unique in that the uJenny token represents its holdings of NFT assets and DAO social tokens.

The uJenny is an ERC20 token issued by Jenny DAO on the Unicly platform and represents fractional ownership of all NFTs purchased by the DAO. This will be truly the first asset-backed social token. Currently uJenny can be used as a way to mine UNIC tokens on the platform.

Jenny Token (uJenny)

NFT Gaming + Finance
The concept of blockchain games had become an industry hotspot after the explosion of Cryptokitties in 2017-2018, but a large number of projects in this track have long-term monthly activities at the level of tens to hundreds of people, for the following reasons: poor playability, poor performance (limited by blockchain performance), certain needs are pseudo-demands (such as Dmarket as the representative of the project wants to build a game prop trading market to play through The future development of blockchain games will definitely have its own characteristics instead of purely copying traditional games to blockchain, and successful projects will definitely come with stronger financial attributes, and players will get benign and positive economic incentives in playing to form an ecological closed loop.

In the field of NFT lending, the future really popular project must be able to design a set of effective pricing mechanism, clearing mechanism to solve the risk of impairment of NFT collateral products (because most of the high NFT assets appear in the field of art, special collectibles, asset price bubble is relatively large).

In addition to NFT as a path to the chain of familiar physical assets, its special design can also naturally express a large number of complex native on-chain assets accurately. From the current on-chain insurance policies, on-chain virtual game assets, the future may appear on-chain behavioral logic, credit information NFT asset, and even the emergence of on-chain NFT assets down-chain application scenarios.

In short, since the first half of this year, we have witnessed the out-of-the-loop effect of NFT in the blockchain and the real world, there have been more and more people involved in it, even after facing the market crash in May did not reverse its strong growth trend.

With the continuous expansion and maturity of NFT application scenarios, and the close integration with DeFi, I believe more traditional industry gurus, artists and collectors will choose to join this field in the future, which will also promote the blockchain underlying infrastructure construction more perfect, just like the gold rush in the 18th century, the NFT “gold rush” in the digital economy era has just begun.

Posted by:CoinYuppie,Reprinted with attribution to:
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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