In the spring of this year, a new “gold rush” hit the cryptocurrency market. It was a so-called NFT – Non Fungible Token. Such tokens were unique, and could often represent some physical work – such as paintings. They sold for millions of dollars. After a few weeks, however, the mania has fallen and now it seems to be taking a second breath.
At times it looked like a digital dump
During the first wave, some such NFT works were sold for millions of dollars. The most expensive NFT that has been sold so far is a collection of works by an author named Beeple, at a staggering $ 69.3 million. It is a collection of his 5,000 works.
Subsequently, various other works were sold, but most often they were drawings. These huge sums and the ability to create your own NFT very quickly and easily attracted a lot of speculators who started creating worthless memes, various pictures, cards and similar things in order to sell them as NFTs and make money. Literally in a few days, several NFT markets became digital dumps, among which quality works that could have some value were unfortunately lost. After a few weeks, however, the mania began to decline, with interest in the NFT sector declining by more than 70% within a few weeks.
Is the second wave of mania starting?
The data suggest that interest in the NFT sector is reviving. This time, however, it is in a slightly different form. In recent months, several projects and cryptocurrencies focused on the NFT area have been created and technically improved. In this case, it is not a sale of own created digital works, but various game NFTs. The biggest example and driving force of the second wave is the Axie Infinity. The AXS token increased by 2,000% in 6 weeks. Even at the time of writing, this cryptocurrency is found at values around ATH.
The game itself, where this cryptocurrency is used, revolves around cute furry creatures called Axies, which players breed, acquire, train, use to complete challenges and fight them online. The object of the game is to obtain small elixirs of love (SLP) that can be used to reproduce new Axies, which can then be created in the game. It is possible to trade Axie in real life on the Axie Marketplace as NFT. Like the Axies, other items in the game, such as real estate, flowers, barrels and light bulbs, are tradable as NFTs.
In addition to AXS, there are other various game NFT tokens. For example, ALICE, the token of the game My Neighbor Alice, rose by almost 300% during the month. It seems that the NFT industry has crystallized after the first chaotic wave and a clear direction has been taken in this area of cryptocurrencies – the gaming industry. Such a strategy of creating and selling game items could revolutionize the entire gaming industry. If only a limited number of such NFT items were issued, their value would be different than if it were possible to add an unlimited number of game items in classic games. This could combine gaming and strategic trading with various items.