Trading, talent and technology go up in NFTs
The non-fungible token (NFT) space is growing faster than most people ever imagined. In just a few years, it has gone from hundreds of people trading PFPs and art for fun, to a multi-billion dollar movement behind the principles of digital ownership and decentralization.
Although the Forkast 500 NFT index may not directly reflect it, the NFT space is maturing tremendously. In fact, falling NFT prices and lower volume are probably some of the biggest indicators of non-fungible tokens’ growth. NFT collections that were once worth tens of thousands of dollars are now sometimes worth only hundreds, which is a good sign that traders are learning to value NFTs correctly.
Although the Forkast 500 NFT index may not directly reflect it, the NFT space is maturing tremendously. In fact, falling NFT prices and lower volume are probably some of the biggest indicators of non-fungible tokens’ growth. NFT collections that were once worth tens of thousands of dollars are now sometimes worth only hundreds, which is a good sign that traders are learning to value NFTs correctly.
The products themselves also mature. Whether you’re building payment tokens and utility into existing ecosystems or hiring unique talent, the most ambitious projects are to keep your head down and build during the bear market. Some of their bold moves today will be looked back on as moments that cemented a strong foundation for Web3.
In December, Yuga Labs onboard Activision Blizzard’s COO Daniel Alegre to Web3 as their new CEO, and last week followed that up by hiring Epic Games’ CTO Mike Seavers as their own. Yuga Labs’ recent months of impressive hires show us the big adult steps the NFT space is now taking on the road to mass adoption.
On the technology front, Yuga Labs has done nothing but impress. During a beta test of their Otherside metaverse game last year, over ten thousand players came together in a single instance that seemed to defy at least my own expectations of what today’s technology would allow. Their second beta test this year was just as impressive, showcasing over seven thousand simultaneous players in a 90-minute adventure into the future of blockchain gaming. Although these feats did not require the blockchain, if you combine this type of technology with digital ownership through NFTs, Web3 will offer players a futuristic experience that players will never want to leave.
Financial technology has also evolved, with Polygon and other layer-2 blockchains pushing the boundaries of what can be done in defi. Squeth and strattles are just two new types of defi investments that are in many cases backed by NFT positions.
And now the Blur marketplace is crossing over into the financial world with a new innovation called Blend, Blur’s spin on lending. Blend will let traders borrow ETH, with borrowers putting up NFTs as collateral. They also offer a form of layaway where certain NFTs can be purchased for just a fraction of the price, with a fixed daily interest fee. So if you see an NFT you want but can’t afford, don’t sweat it, buy it. (What could possibly go wrong here?) Teasing aside, new tools and new ways to access liquidity are important to growing an ecosystem and will almost certainly have an impact on NFT markets.
Naysayers are starting to change their tune about where NFTs are headed, and as easy as it would be to say “I told you so,” it’s even easier to understand why they might have doubted NFTs’ significance. Today’s NFTs are markedly different than before, now more mature and supported by a growing group of influencers and professionals who can speak about the technology with knowledge and conviction.
For now, we should be happy to see the backbone of Web3 being built as it leads to a future where most businesses have at least some blockchain exposure. The time for true mass adoption will come when the public may not even know they are using NFT technology, and that’s exactly the time you can say, “I told you so”.
