Ethereum NF tokens: experts see explosive growth in 2021
A new report has determined that the market for NFT on the Ethereum Blockchain tripled in 2020. In total, over USD 250 million was transacted there.
„NFT“ stands (translated) for „non-fungible token“ and refers to crypto-tokens that only exist once each. The tokens in a series thus form a „family“, but each Crypto Trader token stands for a unique unit, which can be thought of as a family member.
These non-fungible tokens have been used for various digital purposes for some time, for example to create crypto-collectibles. The objects can be virtual equipment (for example armour or weapons) in video games, trading cards and the like. An early example is the „CryptoKitties“, a game released in 2017 with digital kittens on the blockchain.
But NFTs are also becoming increasingly popular in the arts sector. To this end, tokens can also be divided up, so it is conceivable that several people can each have a share in a token and thus a digital object (such as a valuable digital painting).
NFTs are very versatile and pave the way for new ideas and opportunities, which is reflected in a growing digital economy.
How does all this relate to Ethereum?
Ethereum is mostly known as a cryptocurrency, often as „the silver to Bitcoin’s (BTC) gold“. In truth, however, Ethereum is more than just a cryptocurrency, but also a platform on which entire new industries are now building and thriving. One of these industries is the market for NFT.
The Ethereum blockchain provides the „ERC-721 standard“. This regulates the issuance and trading of NFTs on the Ethereum blockchain.
The experts‘ outlook for 2021
In 2019, the value of executed NFT transactions was still just over USD 62 million. In 2020, it already exceeded USD 250 million. The sale of artworks on NTFs increased by 2,800 per cent. In 2021, the market is expected to continue to grow strongly. This was determined by the experts from „Nonfungible.com“ and „L’Atelier“.
It is therefore not surprising that more and more big brands are recognising the trend and want to secure a piece of the „NFT future cake“. These brands include watchmaker Breitling, Nike and Microsoft.
The upward trend of NFT is currently also noticeable in the price of Ethereum (ETH). The price of Ethereum rose by over USD 1,500 from February 2020 to today. This was probably triggered by the upcoming rollout of Ethereum 2.0, but also in part by the NFT.