Recently, NFT has successfully taken over DeFi and has become a new hot topic in currency circles. The unopened data shows that the search volume for the keyword "NFT" on Google almost reached the search volume for the keyword "Aixio" by the end of 2017. The heat is evident from this.
However, it is the celebrity artwork and effects that propels the NFT to its climax. Among them, NFT Beeple's "Everydays: The First 5000 Days" sold for $ 69.34 million at Christie's auction house. It was undoubtedly an explosive event for the NFT and caused a tremendous sensation.
On March 31, NFT-related content appeared in the "Economic Information Network" column of the CCTV financial channel. The report introduces the world's first NFT exhibition gallery to be held in New York, USA, and states that since the outbreak of the outbreak, NFT has attracted a lot of funding.
At the same time, the current NFT boom in the market one after another, can't stop at all.
"NFT is 'out of the circle', one of its main features is the digitization and generalization of the rights to artwork." Huobi University President Yu Jianing believes that these tokens can be exchanged for various public blockchains such as Ethereum. To increase the circulation of the art market, NFT is the cornerstone of digital revival.
"NFT" has the upper hand
“From the table, NFT seems to be a new way for celebrities to play. Behind the 'crazy', the NFT value is highlighted. " Crypto market analyst Jason said that due to increased NFT attention, the next explosives will show. growth.
In fact, NFT is not new. A more unified view of currency circles is that the NFT can be traced back to 2017, and the popular CryptoKitties DApp on Ethereum was the first application with the NFT attribute.
NFT, or Non-Fungible Token, means a non-homogeneous token, and is the only Token that cannot be shared. As an important application form of blockchain technology, common application scenarios include artwork, bill vouchers, game props, etc.
"The NFT uses the ERC-721 (Ethereum Implementation Proposal 721) protocol to define a new technical standard for it." Jason said that compared to ERC-20, ERC-721 and ERC-1155 are based on the Ethereum network to be non-fungible. token. Standard. Therefore, NFTs are characterized by their inherent and unique attributes, just as no two leaves are exactly alike in the world.
According to media reports, by the end of 2020, the five major encrypted art platforms (SuperRare, MakersPlace, KnowOrigin, AsyncArt, and NiftyGateway) had sold a total of 53,663 unique artworks.
According to data from the NFT Nonfungible statistical site, in 2020, various types of NFT were sold as many as 5 million NFTs, with total sales of nearly 150 million US dollars. Although compared to a traditional art market with an annual turnover of US $ 63.7 billion, it is only a drop in the bucket, but in the crypto world, the number of artists, arts and collectors is probably far more than the traditional art market.
This year, the starting point of the NFT is artwork that has swept the art world. Among them, NFT Beeple's "Everydays: The First 5000 Days" is the first pure digital art piece endorsed by a major auction house at auction house Christie's.
It is known that "Every Day: First 5000 Days" consists of 5,000 pictures. This is an artistic NFT that Beeple created to commemorate his 5,000 days of continuous creation from May 1, 2007, and demands one work per day.
Beeple's "Everydays: The First 5000 Days"
With the spread of the NFT craze, it quickly spread in the fields of sports, music, games and so on. For example, the cover of Time Magazine, Twitter CEO and founder Jack Dorsey's first tweet, etc., concluded an auction on the NFT market, all of which played a role in igniting the fire.
Analysts believe that because the value of the NFT is widely recognized, especially the circulation of the value of artwork and others in the encrypted world, crossing borders outside the circle is essential.
NFT tracks have great potential
Recently, the NFT market is active, and large companies, well-known brands, and celebrities have all developed great interest in this area. At the same time, many people in currency circles are also trying to enter the NFT market.
Regarding this, Cao Yin, Managing Director of Digital Renaissance Foundation, said a few days ago, first of all, the investment logic for each track in the NFT market was different. Investing in NFT must be based on roles. NFT, second, NFT is still in its early stages and faces few users, small market, and no liquidity challenges. However, the combination of NFT and DeFi is still very imaginative.
The DappRadar report shows that in 2020, the daily activity of the NFT market has increased by 226%, reaching around 3,400 DAUW; NFT market transaction volume has increased by 785%, reaching $ 78 million. By February 2021, the NFT market had processed more than $ 340 million in transaction volume, a monthly record high. Among them, NBA TopShot is the most active NFT marketplace, with a transaction volume of over $ 225 million.
However, according to data from The Block, the NFT's weekly trading volume has continued to decline since its peak in February. On March 23, EOS founder BM tweeted that the power of the NFT has not yet fully materialized. I'm working on new use cases that can change how communities are built and how funding grows.
Ripple Chief Technology Officer David Schwartz said in a recent interview that he finds two points regarding NFTs interesting, one is "people's motivation to collect stuff" and the other is the concept of digital copyright. He points out that although many people today have "bundled digital rights", the user experience of these rights is not good.
"NFTs are a new type of digital asset that runs on blockchain technology networks. NFTs are a 'value engine' that empowers everything, and it will spark ten-year opportunities for asset digitization." On March 29, Yu Jianing In the event, it was stated that all of them could become NFTs in the future.
He believes that in the short term, this is primarily to realize digital confirmation, circulation and online virtual property transactions represented by works of art; in the medium term, traditional real-world assets such as stocks and private equity will materialize in the future. In the long term, through the Oracle system, the processing of real assets from the Internet to the asset chain will bring more abundant asset value.
It must be said that many people are full of expectations for NFTs today and believe that this is one of the most important application scenarios of blockchain technology. At the same time, because of the scarcity created by the NFT, "scarcity is expensive" reveals only an important economic principle: the relationship between supply and demand determines price.
Beware of making wedding dresses for other people
The NFT has just taken off, and its ecology is still booming, but the sound of caution has emerged.
"The enthusiasm of NFT makes people aware of the potential revenue from this technology." Industry insiders say in the current NFT market, investors tend to focus on the scarcity, which is not a good thing. He believes that neither Bitcoin nor NFT can escape the "hyped" trail.
Not long ago, Ethereum founder "V God" stated that the NFT could be applied to charities and other social welfare-related ventures and charities, but that the technology was still considered a "casino primarily benefiting wealthy celebrities". "Helping celebrities like Elon Musk increase their bank deposits by $ 1 million through NFT sales has almost no social value. However, with support and coordination, these irreplaceable tokens can have a significant impact on other areas of society," he said.
At the same time, due to large fluctuations in digital asset prices, Beeple was also terrified. He stated that he was "scared" by the volatility of Ethereum and immediately cashed in on the US dollar. Additionally, Beeple said in an interview with Fox News that NFT pricing "really" is a bubble.
The same thing was expressed by Fanner Media CEO Gary Vaynerchuk. He says NFT is like an internet bubble, very similar to the position of internet stocks in 2000, although he has no doubt the technology will have durability. Vaynerchuk also said, "The Internet is a game-changing technological revolution, but many early projects were too expensive because they were too excited."
He also firmly stated on Twitter that 99% NFT would not be a good investment, and that there would be some large-scale crashes in the next 12 to 24 months. In this regard, some netizens commented, "Bitcoin is the same, it will spin like anything else." Dan Vaynerchuk replied, "Bitcoin has limits (supply), but the NFT project is not. NFT as a whole is amazing, lots of amazing things and projects will happen, there will be trillions."
In addition, John Egan, CEO of L'Atelier, a subsidiary of BNP Paribas, believes that NFTs are currently one of the most risky asset classes, but they will form the "foundation" of the virtual economy.
Researchers at the Auction Research Center of Central University of Finance and Economics, said that recently, NFT art only occupies a small share of the contemporary art market, and may have parallel linkages with the traditional art market. and won't shake its original foundation.
Great post, I recently wrote a piece about a blockchain on boarding NFTs proejcts. NFTs are where the money is this year
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