In the past few days, the NFT sector has finally exploded. Even with the general decline in the market today, the NFT sector is still very strong. V guest had several articles in the [Blockchain Thinking] article last year to let everyone lay out NFT, such as"In 2021, lay out the next outlet: NFT".(Interested partners can click on the title to read)
V guest has always been optimistic about it. I believe that it, DeFi, layer2 and Polkadot will definitely be hot topics in 2021. I also recommend flow to everyone, and opensea, which has not yet issued coins.
There are many dimensions to judging a project, such as transaction volume, ecological construction level, team strength and code contribution, etc. These may not be very easy to understand for many new leeks. The simpler and more intuitive level is to look at its position on the track.
For example, Flow is the underlying public chain in the NFT field, and Opensea is a leader in the NFT comprehensive trading platform. Opensea has not yet issued coins. If you are interested, you can pay more attention to it, or go to operate it. What if there is an airdrop?
Recently, I have another feeling, that is, leeks really move when they hear the wind, and few people understand the importance of ambush and persistence. I recommended flow to everyone before. If I bought it at that time and kept it until now, it would have increased by six or seven times. After all, it has increased by four times since it was listed on Huobi.
I didn’t list these exchanges when I recommended them, but there are definitely not many people who really hold them now. Some friends around me sold them when they were around 16U, and now they have risen to 40U and asked me if I can still enter. I said Wait for the callback to enter.
Remember that for value currencies, even if they rise, they will rise in waves, and they can be pulled back. If they fall, they will wait for a rebound to lighten up their positions.
Returning to the current question, whether the NFT sector can still be used in the car, of course it is possible in the bull market, but we must seize the story and seize the leader of the track. The current blockchain is mixed. Once a certain field becomes popular , There will always be a lot of ghosts popping up.
Li Qiwei of Litecoin thinks that there are many similarities between NFT in 2021, ICO in 2017, and altcoins in 2013, which means that many projects are actually worthless, but they are just for profit when the wind blows. Run away with a wave of leeks, and it will show its original shape within a few months.
NFT will be a track that brings wealth to many people. It extends traditional artworks to the blockchain. It is a very good theme and very story-telling.
1. Transaction volume
In the past February, the total transaction volume of NFT reached 342 million US dollars, such as NBA Top Shot, OpenSea and CryptoPunks are all very popular. At the end of February, on the Nifty Gateway secondary market, Crossroad, an artwork created by Beeple, was acquired for $6.6 million.
2. Ecological infrastructure construction
More important than transaction volume is that the infrastructure of the NFT ecosystem is now catching up. We know that NFT is made based on the ERC721 protocol, which is different from the traditional ERC20, so this will limit the circulation of NFT. Now there is a The NFT20 protocol is being developed and applied to tokenize NFTs and enable them to be traded on decentralized exchanges such as UniSwap or Sushiswap, that is, to convert ERC721-based NFTs into ERC20 tokens, Can circulate freely in the market.
The whole logic is that when investors add NFT assets to the NFT20 DEX, the NFT assets will be deposited into the corresponding NFT project pool, and the NFT20 factory will create the ERC20 token representation of the NFT project, and each time an NFT is deposited, a corresponding amount will be generated Then these Tokens can be freely traded on exchanges like our other tokens, and investors can also exchange corresponding tokens back to NFT assets at any time, which will undoubtedly greatly promote the circulation of NFT. The governance token MUSE issued by the project has increased hundreds of times in terms of private placement.
3. The strength code of the team
The underlying public chain of NFT, taking flow as an example, the team of flow is the team that created CryptoKitties, and it is definitely a star team in NFT.
After all, they formulated the ERC721 standard, but we all know the congestion problem of Ethereum. Flow did not wait for Ethereum 2.0 or layer2, but directly made a fuss on layer1.
To put it simply, it separates consensus and computing, and separates deterministic computing from computing that requires consensus participation. Drawing on the pipeline model of modern industry, nodes are divided into four categories: consensus nodes, collection nodes, execution nodes, and verification nodes.
These nodes all require pledge, and the refined division of labor greatly reduces duplication of labor. But we have to see that the main reason for flow's success is not technology. Such technology is actually easy to replicate.
The real thing is IP, and it has caught the wind of the entire NFT explosion. The popular NTF collection game NBA TopShot is developed based on the flow public chain.
Besides Flow, what else is NFT that everyone cares about? Please see the full ecological picture of NFT.
The current NFT is more and more like Defi, and "Ethereum, Uniswap, 1INCH" belonging to this track will also appear on NFT. Every field will have its opportunities.
The total transaction volume of NFT in 2020 is 1.8 times that of 2019. From 2020 to February 25, 2021, the total transaction volume reached 170 million. The transaction volume in the first two months of 2021 is already 2.7 times that of the whole year of 2020.
These data all show that at the beginning of 2021, the NFT market has been completely ignited, and the industry's interest in the NFT market is increasing.
But we must also see that despite being so popular, NFT still only accounts for 0.2% of the market value of the entire encryption market, and the market value is very small.
The NFT market is still in its infancy, and it is a niche field. This is exactly what gives everyone the opportunity, NFT, Defi, layer2, plus Polkadot. In addition to holding on to Bitcoin and Ethereum this year, if you pay attention to these tracks, you will basically be invincible.
