In this segment, you will get a better understanding of the NFT Bubble frenzy. Read more to get the big picture of this latest frenzy!
NFT Bubble Overview
NFT Bubble is a hot topic in recent days, it’s quite hard to deny the fact that NFT is a big thing on the market at this moment. However, what’s the big deal behind NFT? Is there any possibility that the NFT bubble will burst?
The current trend tells us that it’s getting hot day by day. The hype is becoming popular in the crypto community. It attracts more and more people to join this new trend and start investing in NFT projects.
Currently, there are many exchanges that support NFT trading such as OpenSea, Rarebits and etc. So many people can easily buy and sell their NFTs. That is easy with only a few clicks of a button.
How Are They Different From Cryptocurrencies?
What makes ERC-20 different from cryptocurrencies? The answer is simple: The concept and structure. Cryptocurrencies such as Bitcoin (BTC) are based on blockchain technology.
While non-fungible tokens are based on Ethereum (ETH). Blockchain technology is more applicable to cryptocurrencies since they have features like decentralization and anonymity. However, non-fungible tokens usually need their own blockchain to support their features.
That’s why we call them ERC721 compliant tokens. Currently, there are many projects using this token standard and issuing their own NFTs for trading and collection purpose. For example, CryptoKitties, Zippie Loom, Dapp Rarities, OpenSea, Rarebits, Nonfinite, etc.
NFT Bubble: Will It End?
Will It End? It’s hard to say if the NFT bubble will burst since there’re so many projects launching their own tokens now using this standard every day. However, what I can say is that it will not burst in a short time because I think it’s still in its early stage.
As we all know, the investors of digital assets are mostly investors. Also, they have a strong belief in the future of the cryptocurrency market and blockchain technology in general. This can be seen by the growth of both Ethereum (ETH) price and Bitcoin (BTC) price year by year.
Investors who don’t have much experience can easily make mistakes when they invest in blockchain projects. For example: investing in scam ICOs or simply buying low-quality tokens with no real use case. But if investors are experienced enough, they will not make such mistakes.
Because they understand that these mistakes can easily trash their portfolio even for a beginner investor. In this case, we can say that it’s an opportunity for developers to come up with a useful project using the ERC721 token standard. So, to gain popularity among investors.
Because there’re so many ICOs launched right now using the ERC-20 token standard. It is more famous than the ERC-721 token standard at this moment. If you want to invest in good token projects from the beginning, you should look for the ones that already have good developer team members.
This team must have solid experience in the cryptocurrency market. So, this is very important because if you buy low-quality tokens, then you will lose your money for sure. Because those tokens will not increase their value or are even worthless after a short period of time due to lack of development.