The phase of “everything can be NFT” has arrived with the explosion of collectibles

In this article, we will continue to focus on the latest hot spots and applications of NFT, including how to put digital assets to greater use.

Have you seen the annualized return of 10,800% NFT?

After the previous smash hit Cryptopunks series, this NFT series called Bored Ape Yacht Club has once again caused FOMO sentiment among investors because of the huge price increase.

These images consisting of one ape head were first released at just 0.08ETH for a total of 10,000, and one month after the release, each ape image increased in price by an average of 900% to a price of 0.72ETH, which is equivalent to a rise from about 1200 to 11,000 RMB.

The phase of "everything can be NFT" has arrived with the explosion of collectibles

Bored Ape Yacht Club

Also at Sotheby’s London on June 10 last week, Cryptopunk #7523 from the Cryptopunks series sold for $11.8 million, setting a new world record for a single NFT work from the same series.

The phase of "everything can be NFT" has arrived with the explosion of collectibles

Cryptopunk #7523.

Is the overall NFT market hotter? The data doesn’t support this.

According to a recent report from digital asset tracking site NonFungible: since NFT sales peaked at $176 million in the week of May 9, the NFT market has plummeted 95% as of this week, June 15, with fewer wallet addresses that had previously purchased NFT continuing to be active afterwards. The report even said, “Since then the boom has cooled and the NFT market has lost its appeal.”

The phase of "everything can be NFT" has arrived with the explosion of collectibles

Number of unique wallet addresses that have traded NFT from September 2020 to week 1 of June 2021, source: NonFungible

Taking the daily trading volume of OpenSea, the world’s largest NFT trading platform, for the past 3 months as an example, we can observe that the NFT market trend has indeed continued to decline since mid-May and into June:

The phase of "everything can be NFT" has arrived with the explosion of collectibles

Data source: Dune Analytics

But looking back at the NFT news over the past week or two, more authorities and individuals are casting real-world objects into series of NFTs that go beyond the familiar form of artwork and involve collectible digital assets such as code, cartoons, academic papers, historical news, event tickets and more:.

  1. Fox Entertainment (Fox) will invest $100 million in an animated NFT series, driven by a show called Krapopolis by the creators of Rick and Morty.
  2. Sir Tim Berners-Lee, the father of the World Wide Web, is selling the original code that built the modern Internet system in NFT form, with 9,555 lines of code, highly collectible, starting at $1,000.
  3. CNN launched a collectible news history moments NFT, will include the past 41 years in space, elections and a series of iconic moments cast into NFT available for purchase.
  4. Dallas Maverick owner says he will issue NFT tickets for Dallas Maverick games next season, saying this approach creates more value for him.
  5. UC Berkeley will mint 2 Nobel Prize-winning papers into NFT auctions, both of which are major biological breakthrough research in the 21st world, and the proceeds will fund education and research at the campus ……

I believe that many people will have this question: not like the NFT artwork exists anti-counterfeiting confirmation function, these things do not seem to have any connection with NFT, why should be made into NFT? Directly take to auction can also be.

Discussions about when the NFT market bubble burst has not stopped, but more information seems to be proving: “everything can be NFT” stage has arrived – more people accept and affirm the need for its asset allocation, rather than the feasibility.

Or rather, the “radius” of collectibles in the NFT ecosystem is widening, with many categories of objects existing in reality being cast as NFTs, which do not need to be associated with NFTs per se, as long as they have group recognition. The way value and digital ownership is stored on the chain is being officially certified more widely.

To prove this, we can find some clues in the market performance in Q1 2021.

NFT collectibles overtake art in Q1 2021 trading volume

According to the NonFungible report, looking at the NFT transaction market in Q1 2021, collectibles and artwork occupy a commanding lead in the six current use categories of collectibles, artwork, games, virtual worlds, sports, and utility – contributing a whopping 91% of transactions (both at 48% and 43%).

The phase of "everything can be NFT" has arrived with the explosion of collectibles

And judging from the development of each category in the first quarter, the collectibles category grew rapidly, leading the entire industry to new heights, having totaled more than $170 million in transactions in a single week. Cryptopunks, mentioned above, is the most popular item, holding the number one position in the Ether NFT series of works track, with a total historical turnover of over $350 million.

The phase of "everything can be NFT" has arrived with the explosion of collectibles

You may ask: What is the difference between NFT collectibles and NFT artwork? In this case collectibles specifically refer to series like CryptoKittes, NBA Top Shots and Bored Ape Yacht Club that use NFT technology to represent ownership of collectibles, which often have developed an IP influence and are considered to have a high appreciation potential.

The artwork category, on the other hand, refers specifically to digital artworks that are constantly minted, bought and sold 24/7 on crypto art platforms such as SuperRare, MakersPlace, and Nifty Gateway, which cannot exist outside of NFT (as an NFT must be minted). They have a high professional threshold for investment and a relatively small number of accepted users.

This explains why NFTs have recently attracted the attention of more official institutions and celebrities frequently, and market behavior has shown a stronger investment interest in digital assets with strong consensus, even over artists’ artworks.

It can even be said that consensus itself is one of the most promising applications of NFT “category”, as long as something has a fan, it does not even need to have any connection with NFT, it can be cast as a “digital souvenir” to trade. The person who buys it, even if they can only get a signature located on the blockchain, and do not own the copyright or other rights to the item, but also willingly.

People who invest in NFT collectibles are more interested in the digital value generated by consensus, celebrities, IP, news history moments, even a meme chart, these consensus or large or small, can be cast as NFT, a permanent mark in the virtual space.

Fragmentation, decentralized storage, NFT + DeFi

The current meta-universe game, artwork and collectibles constitute the three major application scenarios of NFT technology, especially in 2021 due to the high auction prices of artwork repeatedly out of the circle, where more use scenarios in the future? The following are 3 major technology solutions trends.

I. Fragmentation

If a famous artist wants to cast his $1 million worth of artwork on the chain NFT assets, not only to pay the trading platform high “intermediary fees”, which also discourages many buyers.

But if the work is divided into 1,000 copies, each copy can be purchased by different interested parties, fragmentation NFT is thus lowering the transaction threshold, but also to promote the liquidity of NFT works.

The phase of "everything can be NFT" has arrived with the explosion of collectibles

II. Storing NFT

Some analysis says that by analyzing the storage URLs of a large number of NFT platform works, 70% to 80% of the works are not fully decentralized on-chain storage. Even for platforms similar to OpenSea, there are still NFTs corresponding to images, videos and other forms that are actually stored at centralized http addresses, meaning that buyers do not actually buy the assets that are on the chain. So once the site is hacked, or the site is closed, these digital assets will be permanently lost, and the seller is not going to do another to compensate you for the same.

Of course when casting NFT, there are also storage options that allow third parties to upload content to a decentralized protocol like IPFS, but the steps are complex and cost more time and fees – the core storage technology challenge facing NFT today.

III. NFT + DeFi

Some industry analysts claim that NFT lending has become the next explosion in the decentralized finance space.

If you have bought a piece of virtual property in the on-chain gaming community Decentraland or The Sandbox, then you can later lend USDC in the DeFi agreement by mortgaging this property asset to make a down payment for a real house. Or if you have purchased a limited edition skin in a metaverse game on a chain, you can lend it to someone else through a DeFi agreement and earn income from the rent.

The application of NFT has gone beyond the most basic acts of buying, displaying collections, and auctioning, although these scenarios constitute almost 90% of the content at the moment. Once NFT assets are expanded into a centralized and combinable financial module, including as collateral for loans or rentals referenced by other applications, the role of idle assets will be fully utilized, increasing their liquidity and usefulness, and the imaginable space here is undoubtedly greater.

The phase of "everything can be NFT" has arrived with the explosion of collectibles

NFT can be pledged and lent on NFTfi

All three of the above application trends have different technical teams working closely on development and solutions, and are not mentioned in detail here due to the wide range of projects.

There is no doubt that more and more real objects have a close reason to be cast as NFT, whether it is art, collectibles or gaming identities and assets, the era of “everything can be NFT” is no longer an attention-grabbing marketing spiel, it is already meeting the popular demand for multi-asset allocation, moving from creating an NFT to Start using this NFT.

What kind of high price will NFT fetch and what kind of new products will be created in the future? Please continue to pay attention to Wootrade public number, we will be the first to explain to you.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-phase-of-everything-can-be-nft-has-arrived-with-the-explosion-of-collectibles/
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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