Who agrees that 2021 is the first year of NFT? Who opposes?

From JPEG to sports culture to encrypted biology, NFT dominated the news headlines this year, and its popularity surpassed any category in the encryption field.

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In 2021, the price of Bitcoin more than doubled from the highest price in history, the Ethereum ecosystem is developing rapidly, institutional investors have joined the field of cryptocurrency, and Dogecoin has become a popular trend inexplicably. But surprisingly, it seems that everyone around me is talking about “JPEG”.

At this time last year, NFT was only a segment of the encryption field, but now it has become a trend. In the past year, the concept of “NFT” has not only penetrated into a wide range of cultural circles, but also made digital asset ownership a well-known concept. The most surprising thing is that the industry’s monthly transaction volume has soared to billions. Dollar.

In fact, many people love and hate NFTs. Because they are not sure whether NFT represents the future of ownership, or just a catastrophic scam.

So, what exactly is NFT (non-fungible token)? Contrary to popular belief, NFT is not a JPEG. It is neither a cold ape or a pixelated avatar, nor is it a digital collection of sports culture, nor is it a cartoon monster fighting on behalf of users in video games. All these are just things that NFT stands for.

In essence, NFT itself is a blockchain-based token, which can prove that you are the sole holder of a unique digital project-no matter what the project is. Through smart contracts, NFTs can be sold or transferred, artists can obtain permanent royalties, and virtual assets can be used in games and Metaverses.

Sudden Eruption : The first year of NFT 2021

2021 is the year when NFT enters the public eye. Although the concept of NFT appeared in 2014, it didn’t start to shine until this year. This year alone, the NFT field has completed more than 23 billion U.S. dollars in transaction volume.Randomly generated NFT collections, the participation of mainstream celebrities in the field, and the rise of games that make money while playing are the main driving forces behind the NFT boom. The latest Metaverse craze is even more icing on the cake. At the beginning of the year, the celebrity effect of sports circles suddenly pushed NFT from a market segment to the real mainstream market. The monthly transaction volume of the NBA Top Shot on Dapper Labs alone exceeded $200 million in February and March, exceeding the total transaction volume of the entire NFT market in 2020.

Earlier this year, celebrities and artists also made waves in the NFT field, from Grimes to Rob Gronkowski to crypto creators such as Pak and 3LAU. It is worth mentioning that the digital artist Beeple sold an NFT for US$69.3 million at the Christie’s auction in early March, ranking third in the current single auction size of living artists, sensationalizing the entire crypto industry and further Promoted the NFT boom.

However, from now on, this auction seems to have become the ceiling of the initial period of the NFT boom: the frenzy gradually faded, and the market began to become saturated. Obviously, Top Shot’s sales have begun to gradually decrease, and more and more celebrities are not getting the expected returns. Many people are beginning to wonder whether the NFT boom is just a flash in the pan. 

In general, in the first half of 2021, the NFT field completed a record $2.5 billion in transaction volume, and the average quarterly transaction volume was relatively balanced, breaking the previous achievements in this field. However, as the price of cryptocurrencies began to surge in July, the NFT market seemed to have been injected with rocket fuel, and suddenly soared to an astonishing new height in August. After several months of development in the NFT market, the community and team have gradually become stronger, and their utility has gradually expanded, establishing its “blue chip” status, and the transaction volume has reached 10.7 billion U.S. dollars. 

The value of NFT collections will be highly reflected in 2021. Collectibles are no longer simple NFT items. Some have become exclusive brands. As Metaverse becomes more sophisticated and mature, these brands will become more closely related to Metaverse. Based on the statistics of the top 100 NFTs in historical trading volume, at the time of writing, the market value of NFTs is approximately $16.7 billion.

OpenSea is currently the industry’s leading NFT platform. Its trading volume on Ethereum in June was 150 million U.S. dollars, jumped to 329 million U.S. dollars in July, and soared to 3.4 billion U.S. dollars in August. It is not difficult to find that what is driving its surge this time is more primitive and fully encrypted native projects, which also fully demonstrate the creativity of digital assets and the potential of community and functional utility. On the other hand, the celebrity effect has also played a very important role in the development of the NFT market. A series of celebrities such as SouljaBoy, Steve Aoki and Rob Gronkowski stepped into the NFT field at the beginning of this year. Handle. In the next few months, celebrity Paris Hilton, rap superstar Eminem and NBA star Stephen Curry also joined the NFT collection team. Since then, headlines about NFT have frequently appeared in the mainstream media. With the sale of Beeple’s artwork “Everydays: the First 5000 Days” for US$69 million and the debut of NFT at the famous Christie’s auction house, this trend of NFT has become more and more obvious. In the next few months, some other art NFTs, as well as parts of the CryptoPunks and BAYC collections, were sold at sky-high prices at Christie’s and Sotheby’s.

Some other NFTs worthy of attention

1. The Bored Ape Yacht Club took over the baton from OG. 

2. CryptoPunks treats the NFT profile picture as a pass. With this pass, you can enter this unique privileged club unimpeded. At the same time, NFT holders can also commercialize these pictures. 

3. Art Blocks uses the Ethereum blockchain to forge art generated by algorithms, just like EulerBeats’ NFT project for generating music.

4. Axie Infinity is currently the largest NFT project. This project embodies the huge potential of NFT in video games.Millions of players have bought cartoon monsters similar to Pokémon and used them to fight. There are even some people who rely on it to make a living.

5. Another NFT project, Loot, is different from our common JPEG or GIF. It is just a TXT text. These 8 lines of text write 8 randomly generated adventurer equipment. 

Nowadays, decentralized communities that have sprung up like mushrooms are all developing game experiences around NFT.

With the gradual formation of the metaverse, immersive worlds like The Sandbox and Decentraland are leading the digital trend. They can customize, share and even monetize the ownership of virtual land. If Facebook and other companies’ ambitious Metaverse plans can finally be implemented, then we may soon be living in it.

NFT market rebounds

It cannot be ignored that the NFT market is booming. According to statistics from DappRadar, the transaction volume of the NFT market in the third quarter reached 10.67 billion U.S. dollars, and it has reached approximately 22 billion U.S. dollars so far this year. Not only that, this market seems to be becoming more and more mature, because we find that more and more NFT use cases are shifting to practicality. NFT is considered to be an important module for building Web3-in other words, it is also the key to building a Metaverse.

For a long time, NFT has been leading people closer to cryptocurrency and blockchain technology. They come in many forms and are closely related to people’s favorite works of art and culture. Not only that, NFT also makes the field of encryption less mysterious, but more approachable. As Nansen CEO Alex Svanevik said:

“DeFi brings capital into the encryption field, and NFT brings people into the encryption field.”

Of course, someone might spend millions of dollars for a Twitter profile picture, which confuses most of us. But you must know that this is just an example, and it is also the tip of the iceberg among the many problems that this market needs to solve gradually.

It has to be said that there are still some loopholes in Ethereum. Even collectibles and assets mined on less energy-intensive blockchain platforms (such as Solana) are often involved in scams. This is the case. The entire encryption industry is still common.

Social media is generally critical of NFTs, and companies and projects that want to get involved in this field are often strongly resisted. However, this did not stop the big brands from entering the NFT market, just like McDonald’s and Budweiser’s recent series of moves. Brand marketers claim that Budverse (NFTs of the first series of products released by Budweiser) will be released soon, and Sliderverse by Tinderverse and White Castle will also be released soon.

Presumably, even the first group of supporters who were optimistic about the NFT did not expect tokenized digital collections to be so popular this year. However, will this fanaticism continue?

Some industry insiders believe that most NFTs will not be able to maintain such value for a long time. Even the well-known NFT collector and creator Gary Vaynerchuk warned that the “NFT winter” is coming, and the market will pull back. He believes that only selected “blue chip” projects will flourish.

If NFTs are really the cornerstone of the next-generation Internet, they may eventually become ordinary. However, to the great disappointment of skeptics, in the near future, NFT is likely to be ubiquitous because it will be used to represent the ownership of things in our digital lives.

In the end, NFTs will be fully integrated into our lives. We may no longer even call them NFTs, and we are not aware of their special existence. Everything will behave so naturally. Think about it, do you remember the last time you called your digital music collection MP3?

2021 is a year when people are deeply attracted and crazy about NFT. The bell of 2022 is about to ring, will the market continue to be enthusiastic about it? Let us wait and see.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/who-agrees-that-2021-is-the-first-year-of-nft-who-opposes/
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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