The NFT market is much broader than digital art, and digital art itself is much more than gif images and memes from Musk. The NFT economy is gaining momentum at a record pace. People are beginning to realize the potential of these assets. Advanced crypto investors should think about how to use this wave of popularity.
I analyzed the rate at which capitalization was increasing. Below I will give a graph on which I will show how much the NFT market has grown over the past 8 years.
NFT Market Capitalization
Along with the overall growth of the market, the number of applications of these tokens has also increased.
I have written a list where, in my opinion, NFT applies and can be applied:
- Exchange services
- Social services
Actually, games and collecting are already largely dependent on NFT, but at the next stage of development I see growth potential in DeFi, marketplaces and decentralized social networks. Now, of course, it is difficult to imagine a complete list of trends in the near future:
Sharding is not only a mechanism for solving problems within blockchain implementations (such as increasing TPS, load distribution during scaling, etc.), but also a way of distributing risks, profits and other parameters of joint ownership that perfectly overlaps with the NFT market.
Liquidity wrapped in NFT is a much more reliable and interesting thing from the point of view of possible integrations than liquidity created by using only fungible tokens.
The collateral function is one of the main ones that exists in the basis of the NFT market and its development will largely determine the overall evolution of the market and its individual segments. Certainly.
I also analyzed the largest NFT projects and came to the conclusion that the Ethereum blockchain is used in the vast majority of cases. The Ethereum ecosystem ranks first in terms of project capitalization and by a large margin:
Top 10 NFT projects by capitalization
Nowadays, NFT adherents claim that this technology allows works of art to regain a long-lost aura of uniqueness. But in addition to the sky-high price, there is a huge carbon footprint behind this work of art. It is very difficult to calculate exactly how much energy required for mining Ethereum goes to NFT. But the boom of this cryptocurrency, which increased the energy costs associated with it by an order of magnitude, coincided with the boom of NFT. This forced many artists to refuse to transfer their paintings to tokens. Of course, the volume of NFT emissions is not yet comparable to the volume of emissions of bitcoin or streaming services. But this can hardly be considered a sufficient argument. The new version of ZKSwap Version 3 NFT will help us solve this problem.
It is currently fair to say that Layer2 is the most significant growth area in NFT. Layer2 uses various technologies to process transactions outside the main Ethereum chain. They periodically update data on the status of smart contracts and accounts, processing much more bandwidth than Ethereum. The Layer2 platforms facilitate traffic on the Ethereum network with the added bonus of significantly lower fees. As the fight for Ethereum scalability will continue at least until the end of this year, ZKSwap Layer2 has plenty of room to continue demonstrating its capabilities. ZKSwap to the MOOON!