Non-fungible-tokens (NFTs) seized the cryptocurrency industry by storm and generated a buzz that continues to linger in the collective consciousness of cryptocurrency enthusiasts.
The wide acceptance of NFTs came bearing rewards for investors following the staggering gains that they offered. These gains dwarf those made by crypto coins and NFT enthusiasts have justified their performance citing the myriad uses of NFTs in today’s world.
The Dizzying Numbers Behind NFT
The numbers accompanying the NFT boom are simply mind-boggling. In the first half of 2021, the volume of NFT sales had exceeded $2.5 billion, a staggering jump from the $13.7 million of the first six months of 2020.
The sheer growth of NFTs has spawned NFT protocols. At the moment the market cap of the NFTs sits at over $22 billion while daily trading volumes are in the region of $4 billion.
Things reached a crescendo for NFTs following Beeple’s record-breaking artwork sale for a whopping $69 million at Christie’s. The stratospheric figures are still occurring as a rare CryptoPunk is being listed for $90.5 million. This NFT was previously sold for $7.6 million and, should the sale go through, would be one for the history books.
Jack Dorsey’s first tweet was snagged for $2.9 million while Axie Infinity’s “Genesis” Estate was sold for a staggering $1.5 million, adding to the impressive metrics of NFTs. The returns on these NFTs outweigh the gains accruable for cryptocurrencies and NFT enthusiasts are enjoying the moment.
Is There a Meaning to the Craze?
To the person sitting on the fence, the figures behind NFTs may seem crazy but for enthusiasts there is a meaning for the buzz. For them, NFTs have a lot of use cases that justify the price gain, all which can be traced from the nature of cryptocurrencies.
By being unique and scarce, their values are bound to increase. NFTs have been deployed in digital art to promote authenticity and prove ownership. They have also seen utility in gaming, virtual worlds, sports, and even fashion.
Through NFTs, collectibles have leapt to go digital as shown with the widely successful NBA Top Shot. NFTs have also found utility in logistics and as the use cases continue to expand, the buzz may grow even louder.
On The Flipside
ICO Boom All Over Again?
In some quarters, there have been comparisons between the NFT boom to the ICO boom of 2017. Although the ICO boom may be described as a bubble, it is still a bit early to conclude that the NFT craze is a bubble.
During the ICO boom, the market just wasn’t ready – but now, with strong DeFi platforms, improved smart contracts, and a burgeoning user base, NFTs might just be here to stay.
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Source: Cryptocurrency - investing.com
