Binance Smart Chain-based Automated Market Maker, PancakeSwap, has announced that it will launch a non-fungible token (NFT) marketplace on Sept 22. This will be the first version of the marketplace, and the PancakeSquad NFT collection will be released alongside it.
PancakeSwap launching NFT market
The fees generated by the NFT marketplace and the PancakeSquad NFTs will be used to buy back and burn CAKE. Users will need CAKE to mint the PancakeSquad NFTs.
PancakeSwap is a notable competitor to Uniswap, though, the latter is still by far the more used decentralized exchange. The former has the benefits of running on the Binance Smart Chain, which has much faster transaction speeds and near-zero costs.
How much that factors into the success of its NFTs remains to be seen, but it will likely help. The AMM itself has been doing well, recording one million unique wallets in June 2021 while other NFT platforms have also launched their tokens on PancakeSwap.
NFTs are only getting more popular
NFTs have been around for many years, but only in the past 18 months or so have they seen such a tremendous increase in purchases and usability. Led by sales of digital art, the involvement of celebrities and auctions, and blockchain-based games, these unique assets have multiple lucrative use cases. Some celebrities who have sold NFTs include Eminem and Elon Musk.
One might think that NFTs have peaked, but there is little evidence to suggest that. In terms of applications in art, real estate, brand awareness, and gaming, NFTs have only touched a minute area of those respective markets. The following years may see even more companies, individuals, and games tapping into their uniqueness to increase engagement.
It’s still going to be dependent on regulation, though not many countries have singled out the NFT market. Thailand’s SEC recently banned NFTs, but it’s anyone’s guess as to whether other countries will follow suit. It may even be too far along in terms of adoption for governments to pursue stringent action. Consequently, they may resort to control over outright banning.