The NFT market is on the rise: a trend is sweeping the financial world

Digital finance issues are becoming more and more common

Since the emergence of Bitcoin and Co. Digital financial topics are gradually becoming more and more interesting to the general public. Cryptocurrencies have not been just a side issue for some time now. And just last year, cryptocurrencies experienced a sharp rise. According to a study, 41% of cryptocurrency owners made their first purchase of digital money in 2021. Cryptocurrencies are especially popular and respected in Brazil, Hong Kong and India. But interest is also growing in Europe.

Anyone interested in the cryptocurrency scene in the broad sense will quickly realize that it has gone through a massive development in the few years since its inception. What started with investors and traders buying bitcoins, thus expanding their portfolio with an innovative product, has evolved into an independent ecosystem that is becoming increasingly complex. Financial service providers and brokers now offer a variety of products in the cryptocurrency space: Crypto Credit Cards Comparison For example, it shows to what extent its use as a means of payment has already penetrated into the daily lives of consumers. Another nuance is blockchain and crypto innovations such as NFTs. The non-fungible tokens are currently experiencing real hype.

Irreplaceable Tokens: What’s Behind This Phenomenon?

But what are NFTs anyway?? NFT stands for non-fungible token – which means something like a token or non-fungible. For example, Bitcoin will be a redeemable token because it is one of many and can in theory be exchanged at will without changing its value. NFT is more like a trading card in the physical world.

Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency like Bitcoin, but its blockchain also supports NFTs, which store additional information, making it work differently than, say, ETH. In concrete terms, NFTs can be pretty much anything digital. The NFT could be a music track, a graph, or even a Twitter post – in fact, the founder of the platform was able to sell one of his tweets for nearly $3 million. The use of NFT technology is related to digital art. And what is art and what is not, as we all know, is in the eye of the beholder.

One can call NFTs an evolution of the art market on a digital level. This is reflected not least in the fact that for many buyers of NFTs, the sentimental value of the business is just as important as the price they pay for it.

Anyone who buys an NFT gets ownership of the digital work, which is still visible to everyone on the blockchain. So it’s like having a Picasso stay in the museum after you buy it. NFT uniqueness is checked upon upload. In addition, it is always ensured that the NFT creator can be traced back.

Frankfurt Polytechnic Museum has set the task of making NFTs more understandable: with the exhibition “Unblock GaudiThe museum is dedicated to the art of cryptography and answers questions like what blockchain, cryptocurrency, and NFTs actually are.

The NFT market is on the rise: a trend is sweeping the financial world

Photo: Chetraruc on Pixabay

Buying and trading NFTs: here’s how to do it

Since NFTs are on the blockchain, purchases are mostly made via cryptocurrency Settlement. However, there are platforms that make selling through a bank account possible.

by the way: The first NFTs have already been auctioned by the famous auction house Christie’s. This is the daily work of graphic designer Mike “Pebles” Winkelman for $69 million.

Anyone wishing to buy an NFT can do so through the many online marketplaces and cryptocurrency exchanges that also offer NFTs for purchase. Reputable and well known platforms include Open Sea, Nifty Gateway, Super Rare, and Rarible among others. Which platform is chosen depends not least on the desired payment option. The most common means of payment is ether. As a general rule, an Ethereum wallet is required to process the purchase. In addition, it is worth noting that trading on the blockchain is subject to a fee.

NFT Market Performs Better Than Traditional Cryptocurrencies

In its Q1 2022 report, blockchain analytics platform Nansen was able to confirm that the NFT market is currently developing more successfully than the broader cryptocurrency market. It also outperforms the Defi Market and the Stock Market. Specifically, this means that the NFT indexes as a whole outperformed the crypto market by 103.7%. NFTs also perform better in direct comparison with individual indicators. showed that art and craft music groups remained fairly stable, while growth in the NFT gaming and generating art sector slowed.

With such lucrative prospects, internet giant Amazon now wants to get involved as well. CEO Andy Gacy promises that cooperation with the NFT market can be contemplated and that NFT trading can be considered in the medium term. Creating an online marketplace the size of Amazon could give the NFT market an extra boost.

These are the most successful NFTs in the current market

Last but not least, we would like to present the top three of the most successful and most expensive NFTs to trade. These top three places once again show how different a digital business can look in terms of content.

1. merge

Currently the most expensive NFT worldwide is The Merge by artist Buck. It sold for $91.8 million. However, the business is not the property of a single owner. It is a piecemeal business, the parts of which are divided into 28,983 people.

2. every day

We have already mentioned this NFT. Because he went to Christie’s for $69.3 million over the virtual counter. The artist Peebles is well known to NFT fans. Each day is a collection of 5,000 photos taken over a 13-year period.

3. Wall Clock

The watch was traded for $52.7 million. This work is more than a work of art. It was minted to draw attention to the ongoing imprisonment of WikiLeaks founder Julian Assange. The clock shows the days he spent in prison. NFT was purchased by Assange supporters. The money from the sale will be used to defend him in court.

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