Delivered February 18, 2021. Contributor: Jason W.
To understand the NFT market, the key players, value proposition and how to think about NFTs relative to other cyptocurrencies.
Non-Fungible Tokens (NFTs) — The Market
The NFT market tripled in 2020. The total value of transactions increased to more than $250m, a year-on-year increase of 299%.
Global brand's interest in NFTs are one of the main reasons behind the growth. Fashion and luxury brands such as Nike, Louis Vuitton, Breitling, and sports brands such as Formula 1 and the NBA have been actively creating NFT-based consumer goods and services.
L’Atelier, part of French international banking group BNP Paribas documented cases where some individuals are earning six-figure salaries in the 'Virtual Economy' of gaming platforms like Fortnite, and virtual worlds such as Decentraland.
Rarible (RARI) - enables users to easily create a digital collectible (without needing any specific technical knowledge) and sell it on their marketplace. RARI experienced strong growth in early 2021, up 1400% from the start of January to mid-February, a price increase from $1.62 to $24.29
Terra Virtua (TVK) - a digital collectible ecosystem, providing users with a sensory experience, taking digital collectibles into a multi platform VR and AR world.
Enjin (ENJ) - a gaming community platform, with over 20 million users. Built a suite of blockchain products that enable users to easily manage, explore, distribute, and integrate blockchain assets.
Alien #2089 sold for 605 ETH in January 2021. This is one of the first NFTs created, and part of the CryptoPunk collection. Overall, there are 10,000 different CryptoPunks and only nine Alien CryptoPunks.
Research conducted in December 2020 found that NFTs was attracting interest from those engaging in cybercriminal activity, due to what it deems to be 'easily exploitable protocols and unaudited smart contracts'.
Only the project owner can select the next research path.