NFTs gaining popularity, Visa study says

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Reporting on a recent visa white paper, Asad Gillani at NewsBTC notes the emerging popularity of non-fungible tokens in today’s decentralized finance market.

 

“According to the report, NFTs are attractive to fans, leagues, teams, talents, and collectors,” writes Gillani of an internal Visa study on NFT adoption. “It further unveils the peculiarity of the NFTs as the basic sources of fan engagement, fresh revenue streams, and customer relationship management. However, the major utility situations of NFTs so far are art, gaming, and collectibles.”

 

Expanding on how NFTs have been useful during the pandemic, Gillani notes benchmarks at NFT marketplaces, such as a total of $900 million in sales in August, may be harbingers of growing NFT marketplace development.

 

“(The $900 million mark) sets the industry’s new record,” Gillani writes. “The previous record, set in May, was when the net NFTs sales hit $255 million. The month of May saw the crypto markets reaching new all-time highs and then proceed to a multi-month correction experience.”

 

Elsewhere, companies are looking at making it easier to mint new NFTs by doing away with transaction gas fees on particular networks. Platforms like Mintable and Immutable X are pioneering these technologies for investors who want to get involved in this new market.

 

“In the rush to create new NFTs, gas fees are one of the major obstacles for trading mindsets,” writes Qadir AK at Coinpedia. “Technology insiders describing gas fees to lay audiences often talk about the computational energy as the ‘gas’ – This is the need to power NFT transactions, especially minting. That’s the idea in a nutshell, but because those costs are fairly abstract, they are easily shifted around within a platform. That has led to the emergence of NFT minting services with zero gas fees, which is attractive to investors who want to create an NFT but don’t want money to pay money to create one upfront.”

Meanwhile, parties like CryptoPunk are selling NFTs like they’re going out of style. Others are selling individual NFTs for extremely high prices, such as the sale of Beeple’s “Everydays” NFT for $69 million.

 

It’s all part of a market that’s quickly emerging and getting a lot of attention in the digital asset world. Stay tuned!

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