The NFT market is rapidly heating up, merging with Decentralized Finance to form a new trend.

Recently, the NFT sector has experienced a new round of explosion. Data shows that the average selling price of NFT products was mostly below $50 in 2019, while the daily average price in August-September 2020 has exceeded $100, indicating a significant increase in users' willingness to pay for digital products.

NFT( Non-fungible tokens ) have the characteristics of being irreplaceable and indivisible, representing "uniqueness". Unlike fungible tokens such as Bitcoin, NFTs are similar to artworks in the real world, with each one being unique.

Currently, Ethereum's ERC-721 standard is the most popular NFT protocol. At the same time, other public chains like Tezos and Polkadot have also launched NFT development modules, attracting a large number of developers. In 2020, the average daily transaction volume of NFT projects increased by about 105% compared to the previous year, demonstrating strong market demand.

Bitcoin and Ethereum are important platforms for the development of NFTs. In 2016, on-chain card games based on Bitcoin began to gain popularity. At the beginning of 2018, the game Cryptokitties on Ethereum became very popular, establishing Ethereum as a significant choice for NFT development. Subsequently, trading platforms like OpenSea became the main entry points for traffic in the NFT space.

In addition to ERC-721, other protocols are also emerging. For example, Tezos launched the FA2(TZIP-12) multi-asset interface, which supports various types of tokens and applications, simplifying the creation and management process of NFT assets.

The integration of NFT and DeFi has become a new trend. Some new products are referred to as "GameFi," which combine gaming and financial attributes. These products are mainly used for financial certificate rights confirmation and enhancing the utility of NFTs. For example, the yinsure.finance project allows users to generate tradable NFT tokens based on insurance policies.

With the influx of DeFi users, the market's demand for the security and efficiency of underlying platforms has increased. The high Gas fees and security issues of Ethereum remain challenges for developers. In contrast, PoS public chains like Tezos show growth potential in contract deployment, and their ecosystems are continuously improving.

In the future, the integration between DeFi and NFT will deepen. As the value of NFT products increases, developers' demands for security performance and efficiency will also rise. Public chains like Tezos, which feature high security and low energy consumption, may provide more opportunities for innovative products that combine NFT and DeFi.