- Is NFT a Not-Falling-Toy
- What is NFT
- What if the recent recovery is temporary
- Do NFT applications saturate?
Is NFT a Not-Falling-Toy
Though 2022 suffers the worst crypto ebbs as the macroeconomy is staggering, we could still see some bright sides in the crypto and blockchain field, NFT.
It comes to me as a huge astonishment when whole financial markets including stock, and gold enter a downturn as all the investors are inclined to be risk-off, holding cash as much as possible.
According to a report from Chainalysis, collectors have sent around 37 billion to the NFT market in 2022 as of May 1, which seems like outperforming the total of 40 billion in 2021 is less far away. While crypto price declines over 50% from its high last November, the recovery of NFT has arisen in mid-April as some popular projects such as Moonbirds, Otherdeeds, and OkayBears bring the craze back.
The tide might not flow away soon after the NFT collections are going to be showcased on Instagram; besides, large sport tournaments such as FIFA world cup this year could continue the wave
What is NFT
If you have experience with smart contracts or web3 development, you will easily find out NFT simply is just one token type with zero decimals and supply amount limited to the unit. What makes this beautiful extension from the original fungible token so successful could be its eligibility for storing data off-chain with guaranteed security and maintaining the consensus among blockchain.
The idea of holding NFT making collectors unique and special fail to raise my interest initially as it acts like holding a Pokemon or baseball player card in digital form to me without generating true value as Defi did. However, at the time of writing, the volume of active users and buyers tends to remain, indicating that NFT is not falling toy as it refuses to adhere to market sentiment.
Token could be either Fungible, Non-Fungible, or Fungible-assets
Fungible: decimals > 0, supply > 1, ex: USDC, ETH
Non-Fungible: decimals = 0, supply = 1, ex: MoonBirds, OkayBears
Fungible-assets: decimals = 0, supply > 1, ex: materials and resources in gaming, namely wood or steel
What if the recent recovery is temporary?
While the likelihood still exists and is not significant enough to give anyone a clear version, it is noteworthy that more and more “shrimps” crowd and participate in the blockchain community and NFT marketplaces as the number of active users on the NFT marketplace accumulate steadily and BTC supply address with low balance increase steeply. We can be sure that depreciated bitcoin and crypto have retreated their role as inflation hedging assets, becoming the entrance to the decentralized world along with increasing web3 applications and innovative projects.
What is ironic in the current crypto world is bitcoin and AltCoins are derailing on keeping the value and authority from the central issuer’s control
Do NFT applications saturate?
As I mentioned previously, I look down to NFT’s future in the beginning, making no sense to me why I need to hold the digital image on the blockchain without accruing any value. However, preconceived notions are often difficult to be aware of when something is new and unknown at the first glance. The pouring hype enlightened me about taking the reference again as I might be knocked out of the competitive and growing blockchain field. Surprisingly NFT is getting mature as some of the practical applications in the real world have been introduced to crypto leveraging on crypto’s magic — storing the value, transparent business model, and decentralized authority.
STEPN inevitably becomes a bellwether in the play-to-earn field, allowing users not only to generate real money but to acquire health. Okaybears, money birds, and Bored Ape Yacht Club(BAYC) make up their web3 community which is exclusive to the holders of corresponding collections. Moreover, a bunch of Defi protocols starts to integrate with NFT to verify loyal supporters and filter out mercenary arbitrageurs. It is likely we could see more innovative implementations with NFT to catch our eyes in the next years.
Make a bet that NFT will shine in the digital content fields in the next years, namely music, digital art, articles, and podcast, as it guarantees the unquestionable ownership and exclusiveness
