According to a recent tweet from Dapp.com, a website solely focused on decentralized applications, the NFT market is booming.
There are a variety of factors that could have led to this large increase in growth. For example, last week, an art collection by famous digital graphics designer Beeple broke all previous price records when it sold for almost $800,000.
Referencing the Dapp.com article, the previous record holder was the ‘genesis’ kitty from the original NFT game, CryptoKitties.
The genesis token of a blockchain-based game is the first non-fungible token created on the platform, which is significant for some.
What Are NFTs?
Non-fungible tokens are cryptographic tokens that represent scarcity, and therefore cannot be interchanged with other cryptocurrencies like BTC or ETH.
If you have 1 BTC or 1 ETH, it doesn’t matter which unit you own. They are interchangeable. This is not the case with NFTs as they range in variety. They can represent anything from art, real estate, digital collectibles, gaming items, insurance claims, and more.
Most NFTs are built on Ethereum using the ERC-721 token standard, which allows for the creation of unique tokens. As more use cases and users get involved in decentralized applications, this space could show rapid growth.
More Signs of Growth
As Ethereum continues to rise in price after its progression to ETH 2.0, additional users appear to be taking part in the Ethereum ecosystem. There are a variety of famous and emerging artists making headlines.
SuperRare, a digital marketplace specializing in NFTs sold over $4 million in digital art last month. Artist Micah Jackson sold a single piece of artwork for $120,000.
The ecosystem is also witnessing NFT adoption from gamers, as Enjin, a decentralized gaming platform, has partnered with gaming juggernaut Atari. The collaboration will offer Atari-themed NFTs on Enjin’s platform.
Soon, Enjin users will utilize classicly-themed Atari NFTs in a variety of decentralized games. NFT’s are likely becoming more mainstream, and the networks behind them more robust.