The NFT craze sweeps the encryption world

Every year in the blockchain field, there are representative hot topics and trends. In 2017, it was ICO, which gave rise to a bull market; in 2019, it was IEO, triggering a wave of exchange tokens; in 2020, it was DeFi, which sparked a wave of liquidity mining. And in 2021, the undisputed annual keyword is NFT.

The popularity of NFTs can be seen from some examples. In 2019, the initial price of a limited edition pair of socks was only $12, but by 2021, it had skyrocketed to $160,000. A rainbow cat Gif meme from ten years ago was made into an NFT and sold for a high price of $580,000. The bidding price for the first tweet of a certain social media platform's CEO once reached $2.5 million.

The player card packs launched by NBA Top Shot have sparked a huge market. Fans can purchase NFTs of players' highlight moments, such as dunks, three-pointers, and game-winners. On February 23, an NFT of LeBron James' dunk over an opponent was sold for a staggering $208,000, setting a new record.

According to statistical data, in February 2021, the trading volume of the NFT market exceeded $340 million, setting a historical record. The popularity of NFTs has expanded from the field of encryption to multiple areas such as sports, art, and gaming. Google search trends show that the popularity of NFTs first surpassed DeFi at the end of February and even exceeded ETH in early March.

The explosion of NFTs has allowed blockchain technology to truly step out of its niche for the first time and gain mainstream attention. Compared to the abstract and complex concepts of blockchain, NFTs combine with familiar items like collectibles and artworks, making it easier for ordinary people to understand and accept. It has not only attracted a large number of users from outside the industry but also provided creators with new ways to realize value.

The explosion of NFTs in 2021 can be attributed to several reasons: the improvement of trading platforms, the wealth effect brought about by the cryptocurrency bull market, the demand spurred by the pandemic, and the influence of celebrities. A deeper reason is the growing trend of digitalization in human lifestyles.

For ordinary investors, there are mainly two ways to participate in NFTs: one is to invest in cryptocurrencies related to the NFT concept, such as ENJ, FLOW, CHZ, etc.; the other is to directly purchase specific NFT items, such as NBA Top Shot cards, encryption artworks, etc. When investing in NFT items, it is important to choose works from major IPs that have high attention and liquidity.

Whether for creators or ordinary users, NFTs have brought unprecedented opportunities. They have made high-end collectibles such as artworks divisible and tradable with clear ownership, allowing more people to participate. Although NFTs are still in their early stages, they undoubtedly represent a completely new way of value creation and transaction, with promising future development.