Blockchain-powered Launchpads Are at the Ready
In terms of games, investors, and widespread use, non-fungible tokens are on the upswing. A recent report analyzing 20M NFT transactions reveals insightful information across multiple categories.
However, compared to cryptocurrencies in general, NFTs have a long way to go before reaching the point of daily coverage from mainstream media outlets. Most traditional news sources now track the price of bitcoin, but large NFT sales occurring on OpenSea or WAX rarely make headlines.
Publicity is a significant NFT adoption barrier. Whereas cryptoassets trade publicly, NFTs trade in private. In other words, one market is out in the daylight while another hides in partial shadow. That said, NFT aggregator sites, including NonFungible.Com, give welcome visibility to trading activity.
But ironically, cryptocurrencies — and their underlying blockchain technology — paved the road to NFT acceptance and use cases. For multiple reasons, NFTs have the potential to grow much faster than cryptocurrencies ever could.
Let’s discuss three of them, shall we?
The concept of value is somewhat muddled in theory. We believe something is valuable because other people say they are. Why does government-printed money hold any value? Because the system says so, that’s why.
After all, money is nothing more than a promise wrapped in common metals, abundant (and renewable) paper, and a splattering of ink! On a macro — and sometimes budgetary — level, finances are a struggle for most individuals.
The same holds true for cryptocurrencies. If people have trouble understanding money, making it digital merely adds complexity.
But tokens? Most people can wrap their heads around the concept of purchasing an item with a unique and specific use case. Especially anyone who’s been to an arcade to play video games. Which brings us to our next point…
Let’s face it, money is boring. Sure, some of the luxuries and experiences money can buy are often exciting. But staring at numbers in an account isn’t exactly our definition of a good time.
NFTs, on the other hand, often attach themselves to gameplay and artwork. Plus, their scarcity and collectability are both accelerating NFT awareness. Artists, collectors, gamers — and blends of all three—can all find NFTs attractive for myriad reasons.
NFTs allow gamers to rightfully own their in-game items.
OpenSea is the world’s largest NFT marketplace. But as NFT awareness accelerates, many more are cropping up — including billionaire-owned Nifty Gateway. However, because OpenSea is the most established of the bunch, that’s where we find the most measurable data.
Beginning with a handful in mid-2018, the number of OpenSea users recently hit 19k. Although the figure is relatively small, the above chart’s upward trajectory is nonetheless impressive.
NFTs and blockchain gaming are the best of pals. And since video games are on a seemingly never-ending rise in popularity, NFTs are riding the wave in tandem.
3) Deeper Foundation
If you were around before the Great Crypto Bullrun of 2017, you might relate. Cryptocurrencies had been flying under the radar for nearly a decade. But when bitcoin’s price blasted off past U.S. $20k per coin, the entire world seemed to notice.
Now, you may be an account holder yourself, but either way, Coinbase is one of the world’s most liquid, fiat-enabled exchanges. And, similar to the OpenSea chart above, the number of Coinbase users continues to climb:
We’re sure you can imagine what this massive spike in crypto wallets does for the NFT industry. You’ve no doubt heard the adage, “a rising tide lifts all boats.”
Because NFTs and blockchain games often link to crypto wallets, 30M users create an excellent springboard. And that figure only accounts for a single exchange. There are now hundreds of global exchanges and wallet apps that provide current and future homes for NFTs.
Rather than building everything from scratch, NFTs have a robust infrastructure on which to add layers. Ultimately, the birth of bitcoin and ethereum are responsible for the ascending growth pattern of non-fungible tokens.
Compared to NFTs, cryptocurrencies have had many more years to mature. But for the reasons outlined above, those immature years formed the bedrock of the NFT landscape.
Crypto can be dull. But NFT-powered games offer endless entertainment. Since the idea of NFTs is easier to grasp than the concept of money itself, NFTs have plenty of runway for future flights.
As the market further matures, so do NFT use cases and value propositions. And for our part, we’re excited to help push the industry forward with KOGS, an NFT-powered blockchain game of our very own!
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