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NFTs – The Most Powerful Narrative in The Blockchain Space

March 3, 2021

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If you are in the blockchain and crypto space, there’s a high chance you might have heard about NFTs (Non-Fungible Tokens). If you haven’t yet, maybe very soon you will. The crypto space is swarming with innovative projects coming up every other day, aiming towards a common goal – adoption.

Before delving deeper into why NFTs are the talk of the crypto town, let’s understand the basics.

What are NFTs?

NFTs or Non-Fungible Tokens are unique tokens, as in they cannot be replicated or be equated with an asset that might seem similar, unlike fungible ones like dollars, stocks, or bars of gold.

Technically, NFTs are documents with hashes stored on Ethereum (ERC-721) usually, that points out where the associated content or image is stored virtually.

Advent of NFT

The advent of the NFT boom started with the launch of the National Basketball Academy’s (NBA’s) Top Shot website launch, which will allow users to buy NFTs in the form of video highlights of the games.

Real-Time Use Cases

A Nashville-based NFT investor – Nate Hart, has been involved in the NFT market since 2017 and owns some digital arts such as CryptoPunk and Autoglyphs. The growing interest in NFTs coincides with the surge in online retail trading.

NFT Boom

As per dApp stats, February 2021 was the best month for NFTs, where their volume grew from $71 million in January 2021 to as high as $342 million in February 2021, which is a 400% growth. NBA contributed majorly to the growth, as it was responsible for 67% of the NFT transactions.

A couple of days back, a new NFT sales record was set when the renowned DJ 3LAU sold $11.6 million of his NFTs in a single evening.

Litecoin Creator, Charlie Lee compared the surge in NFT popularity with ICOs back in 2017.

NFTs are here to stay and gain momentum. Know the basics of NFT here.

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