The crypto subsector experienced a reasonable boom over the past year. And it’s only increasing.
Ethereum and the Rise of the NFTs
The non-fungible token (NFT) market grew by leaps and bounds last year, seeing brief growth in mid-2020 and a sudden spike in September. And now there are over 630,000 such wallets that have been involved in the subsector in some way.
Alex Atallah, CEO of the NFT platform OpenSea, said in a tweet this morning: “There are now over 630,000 different wallets that have created NFTs or semi-fungible tokens (ERC721 or ERC1155).”
Comparing the numbers with the rise of the Internet in the late 1990s, he found that at that point in time in 1999 only 23 blogs were “live” on the Internet, while that number rose to over 50 million six years later.
There are now over 630,000 different wallets that have created NFTs or semi-fungible tokens (ERC721 or ERC1155).
To put this in perspective: In 1999 there were 23 blogs on the Internet. Six years later it was 50 million
– Alex Atallah (@xanderatallah) January 11, 2021
Non-fungible tokens are used to create verifiable digital scarcity as well as digital ownership and the ability to interoperate assets across multiple platforms. They find their uses primarily in art, collectibles, and games, but can be used to prove possession of almost anything.
Game-related NFTs emerged after 2016 when Bitcoin-based trading cards issued by projects like Age of Chains and Rare Pepes made the rounds. Later, with the introduction and popularity of Ethereum, the NFT market continued to grow.
In June 2017, the “punk” character trading platform CryptoPunk was launched. Later in those years in October, DADA.art was built on the CryptoPunks model and launched the first marketplace for rare digital art.
Punk 4669 bought for 14.99 ETH ($ 20,933.23 USD) from 0xaae8c5 from 0xbc5e8b. https://t.co/a5xJREcB9U #cryptopunks #ethereum pic.twitter.com/c7y69zVJOJ
– CryptoPunks Bot (@cryptopunksbot) January 20, 2021
Most of the NFT market then (and still does) focused on art. However, the introduction of popular blockchain games like CryptoKitties, a cat breeding and trading game, opened up the in-game collectibles niche for blockchain games.
This was made possible because NFTs were the ownership of in-game assets and were completely controlled by the user instead of the game developer. This gave the owners true Ownership of their in-game assets.
$ 777k sale
NFTs are based on Ethereum’s ERC-721 standard, which allows tokens to be issued in the same smart contract while remaining unique. This meant that a single smart contract would contain tokens of varying value, each defined by their age, uniqueness, or rarity.
The niche has been booming so far. As CryptoSlate reported last December, Nifty Gateway, a leading NFT marketplace, oversaw the sale of a $ 777,777 NFT sale – an art collection by digital artist Beeple.
ONLY ONE REMAINS… .https: //t.co/MW6h9bopxx pic.twitter.com/tmEtUzPrRH
– Beeple (@beeple) December 13, 2020
The relatively small NFT market is now continuing to flourish. According to NFT tracker NonFungible, over 15,000 NFTs were sold in the past week for a volume of over $ 3.6 million. Of these, the CryptoPunks platform generated the largest turnover with a trading volume of USD 766,000.
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