The Growth of NFT Tokens
Snapshot
- NFT Flying High
- Reason for Such Quick Rise
- Are they Worth Investing in?
2021 witnessed a significant surge in prices of NFT tokens. The latest trend of digital arts has gained huge attention and popularity, to an extent that big famous organizations are also trying to acquire them.
NFT Flying High
In the past few months, there has been a remarkable rise in the prices of art tokens. High volumes of trading are being carried out in the NFT market and this number is only increasing with every passing day.
One such platform, for art tokens, that has led the way and achieved great success is ‘OpenSeas’. Alone in August, around 3.4 billion of trading volume was carried on their platform. Since then the website has continuously witnessed massive traffic.
Even though there have been some minor technical issues too, the NFT market has continued to gain huge attention from art token enthusiasts and active crypto.
Some NFT tokens like ArtBlocks and CryptoPunks were able to acquire the highest profits and sales as digital tokens in the past few months.
Reason for Such Quick Rise
The factors that are pushing art tokens towards a Bull Run and into the limelight are discussed below.
As per the report by Larva Labs (creator of CryptoPunks), Visa (a multinational payment company) has bought $150,000 worth of tokens of CryptoPunks. This transaction caused a huge upsurge in the NFT market.
It was reported that on the same day, about 300 more transactions were made. This was a major upswing in transactions, as normally the rate of transactions is between 15 and 50 on a day. Though it can be said for certain, whether this sudden rise was the result of VISA’s investment in NFT or not.
Another reason for the growth of NFT is the amount of popularity that it has attained. With NFT becoming mainstream and well-adopted, it is guaranteed that it is attracting and will continue to attract various investors from different sectors.
Either way, it is easy to conclude now that NFTs have developed a huge fan base, especially among aestheticians. Seeing the latest trend and growth of these tokens it can be safely assumed now that they are here to stay.
Another factor that has led to the popularity of NFT is the environmental controversy related to it. While many believe that NFT may not be the right choice, concerning the environment, some are working very hard to reduce the impact caused by the computers behind this technology.
Are they Worth Investing in?
With the development of DeFi and blockchain, NFTs have also started to make headlines and gained huge popularity.
There is still uncertainty about the institutional adoption of NFTs, but investors are trying to be the ones who are early to the party, as they see NFT with a potential scope and an opportunity to earn profits.
Similar to Bitcoin, some investors are not surprised with the growth and investment that this technology has achieved; some investors believe it to be a bubble that is bound to burst.
For new investors, NFTs should be considered a high-risk investment because of the volatility of the tokens and being new to the market.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
Photo by – TheDigitalArtist on Pixabay