Non-fungible tokens (NFTs) are rapidly growing in popularity and many predict these tokenised assets will become the next strong trend in crypto, similarly to ICOs and Decentralised Finance (DeFi).
Non-fungible tokens are, in effect, like a unique type of cryptocurrency asset. They each possess an exclusive sense of ownership, differentiating from one another. The surface is only just being scratched with NFTs and their digital art form. This is typically the most lucrative time to become involved in an asset, before it becomes more widespread to the general public.
Part of the underlying excitement in NFTs lies in their future possibilities. The unique tokenisation aspect allows for colossal growth into other market places and open the door for expanding widespread peer-to-peer transactions. This won’t be an immediate development, but imagine the growth potential that could be involved. People thought Bitcoin was crazy all those years ago!
Currently NFTs are closely aligned with sectors such as gaming. Digital tokens and gaming lend themselves to one another, with the appeal of digital art being more attractive than an actual currency itself.
This initial excitement behind NFTs is only the elementary stage of the potential process. Collectibles and gaming cards are simple (yet attractive) in their nature, but to truly comprehend the potential of NFTs, think about the ability to tokenise and transact all aspects of life from around the world. Life in itself is non-fungible, so what parts do you feel can be tokenised? DeFi has introduced NFTs to the cryptocurrency audience, with many embracing this new and exciting initiative.
NFT marketplaces are becoming established, with governance token drops seen as a keen incentive through market place mining. Projects such as Meme Protocol have combined liquidity mining with exciting NFTs. In short users stake $MEME in return earning non-transferrable pineapple points. These are consequently used to mint a variety of unique NFTs with a capped fixed supply. The growth in value of these NFTs were hitting x10 in a matter of hours.
There are barriers to overcome for NFTs in crypto such as scaling and adopting Eth 2.0, as well as cross-chain interoperability both with projects like Polkadot or with NFTs. This being said the exponential growth potential is anticipated to dwarf the 2017 ICO boom, and it is definitely a concept to become involved with.