Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

How DeFi Made NFTs One of the Biggest Buzz Words of 2020

by Gregory Keough
December 22, 2020
in HodlX
HodlX Guest Post  Submit Your Post
 

2020 brought us DeFi, and DeFi is elevating the status of NFTs. Non-fungible tokens (NFTs) are assets that cannot be divided or they lose their value. For example, a piece of artwork could be represented as an NFT (if you shredded a Monet painting, it would be worthless). CryptoKitties, digital art, domain names and anything that connotes rights of ownership can be an NFT. As you might imagine, these types of assets, like art and other collectibles, have very specific markets, often making them difficult to buy and sell. DeFi changed all of that, bringing much needed liquidity to NFTs.

How DeFi gave NFTs the liquidity these markets needed

DeFi has been booming because of its ability to democratize access to financial services, like lending, borrowing, savings and insurance, but also because of the extraordinary amount of value being poured into these ecosystems. In short, there is a fundamental shift going on in finance, and bigger financial players are taking notice and getting involved.

Just six months ago, there was less than $1 billion locked into DeFi protocols. That number has now climbed to about $14 billion. Mirroring DeFi’s explosion, NFT sales have also skyrocketed with $1 million in sales in the first week of September, doubling a month later to $2 million. DeFi made NFTs more accessible and affordable via fractionalized ownership, which has increased liquidity and market size.

Most interesting NFTs on the market today

Between digital art, game pieces, collectibles and rights to operate within DeFi ecosystems, there are many forms NFTs can take.

In December, the digital artist Beeple broke records when he sold $3.5 million in NFTs linked to his hybrid digital-to-physical collection. Digital art seems to be a growing trend bound to continue gaining steam in 2021, with total crypto art now valued at more than $30.5 million.

Decentraland’s Museum District is a rather intriguing digital space for collectors to display and share their digital art – a welcome alternative to admiring the artwork once in a blue moon on a personal device.

Wildcards gamifies wildlife conservation by enabling ownership of NFTs representing guardianship of endangered species. The owner of a card is required to pay a small tax to maintain it, which goes towards conservation groups. In a unique twist, cards are always for sale, so another user could swipe guardianship at any time, which adds to the amount being donated.

In the blockchain-powered video game, The Six Dragons, players collect NFT “ingredients” to craft into weapons. The created weapon’s stats, rarity and probability of destruction are determined from an amalgamation of player experience and input randomness. This incorporation of randomness adds another layer of excitement and surprise to the game. Smart contracts can be deployed to determine distribution, appearance and various attributes of an NFT.

Given explosive growth, what does the future hold for NFTs

Beeple’s digital art, Decentraland’s Museum District, Wildcards, and the Six Dragons provide foundational ideas upon which new NFT applications can be envisioned. NFTs can give rise to fractional ownership opportunities, for example. Imagine owning a piece of an exotic car, a Georgia O’Keeffe painting or an ancient artifact. NIFTEX launched fractional ownership of its rare Axie Infinity card, Almace, which saw over 1,000 ETH transacted in its first week after release.

NFTs could help to support content creators in sustaining their livelihoods. As Priyanka Desai, VP of operations at OpenLaw, expressed,

“When you start talking about how content creators are paid, that’s where DeFi comes in; and when you start talking about property of creators, that’s all NFTs.”

Music, visual art, films and other unique creations all have the potential to be represented as NFTs.

The NFT-DeFi bond is strong

At least for the time being, NFT growth appears to be tied to the success of DeFi. There are many DeFi protocols that could deploy NFTs to grant a type of “franchise rights,” for lack of a better word, to acquire certain benefits within an ecosystem.

In another demonstration of the bond between NFTs and DeFi, when Yearn.Finance “created Y.Insure, a way to do KYC-free insurance on any crypto asset, it used NFTs to represent the policy with insurers.” NFTs can also now be used as collateral to acquire loans, expanding the usage possibilities for these unique assets.

Given the potential gamification enabled by NFTs and other “fun” elements not currently manifested elsewhere in crypto, it’s been predicted that NFTs will be the on-ramp into crypto for as many as four in 10 new users. If 2020 was the year of DeFi, 2021 could be the year of NFTs.


Gregory Keough

Gregory Keough is a member of the DMM Foundation, the organization behind the DeFi Money Market (DMM). He also boasts an impressive track record of digital innovation in large enterprises (MasterCard, Telefonica and others), as well as startups.

 
Check Latest Headlines on HodlX


Follow Us on Twitter Facebook Telegram

Check out the Latest Industry Announcements
 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • DAM Finance Receives Strategic Investment From Arrington Capital Moonbeam Growth Fund
    August 11, 2022
  • Metaverse, Web 3.0 Disruption and Blockchain Advancement To Be Discussed at MetaWeek in Dubai
    August 11, 2022
  • DeFiChain Community Brings Attractive Rewards for DFI ERC-20 Pairs on Uniswap
    August 8, 2022
  • Bware Labs Announces the Blast Incentivized Testnet, Code-Named Houston
    August 8, 2022
  • Aurigami Collects $12 Million War Chest To Grow Aurora-Based Lending Protocol
    August 2, 2022
  • Impel Adds Bitcoin to ISO 20022 Financial Messaging on XDC Network
    August 2, 2022
  • Serenity Shield and Digital Insights Announce Strategic Partnership
    August 2, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$24,580.59
$24,580.59
0.48%
Ethereum
$1,992.06
$1,992.06
0.28%
Cardano
$0.582895
$0.582895
4.05%
XRP
$0.386734
$0.386734
1.56%
Dogecoin
$0.078218
$0.078218
6.79%

Spotlight

  • The Bank of Thailand Will Launch Retail CBDC Pilot Test in a Small Group by the End of This Year
    August 8, 2022
  • Analyst Predicts Imminent Regulations Will Trigger Crypto ‘Cleansing’ – Here’s The Silver Lining
    August 11, 2022
  • Solana, Avalanche, and Polygon Breaking Out as One DeFi Altcoin Carves Bear Market Bottom: Top Crypto Analyst
    August 14, 2022
  • Banking Titan Citi Says Ethereum Merge Could Boost Crypto Exchange Coinbase Stock Price: Report
    August 7, 2022
Finance Magnates London Summit Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2022 The Daily Hodl