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NFT Marketplace Potential and

Its Expected Growth
XANALIA Mar 4 · 4 min read

The extending digital assets economy and immensely growing exchange

of NFTs among crypto users and companies have revolutionized the NFT
marketplace. Digital traders can possess ownership of their digital goods
through crypto tokens on a blockchain-based platform.

What is NFT?

If you are unbeknown to the NFT term, In that case, it represents non-
fungible tokens that are unique and distinguishable objects such as
digital art collectibles, sports cards, unique gaming objects, or virtual
real-estate.
The NFT marketplace is outpacing the physical trading space as the
possession of digital collectibles is more confident due to the
distinguishable property of NFTs. Each NFT is distinct from the other one
and easily falsifiable. Hence, it is easy to identify the flow of fake
collectibles in the liquidity cycle.

Direct exchange of NFTs is not possible, even if they exist on the same
platform or game, because each NFT contains specific information.

What is NFT Marketplace and Its Potential?

The prospective emergence of the NFT marketplace has shown that

digital collectibles are bought and held, and traded. There was a time
when the crypto market lacked the adequate structure and liquidity flow
to allure big investors, but it is not the case today.

With the advent of Ethereum and Blockchain protocols, the NFT

marketplace has become more established. NFTs can generate an
appreciable return on the investment of bitcoin and altcoin, which offers
an opportunity for the investor to access fractional investments.

The NFT marketplace holds enormous potential as the widespread use of

non-fungible tokens in the gaming space and other platforms are on the
upswing. However, publicity is a significant NFT adoption barrier.
Whereas crypto assets trade publicly, NFTs trade privately. Ironically, the
blockchain technology and increasing use of cryptocurrencies — set the
stage for accepting NFTs.

NFTs marketplace has the potential to grow at a higher pace than

cryptocurrencies ever could, that can be proved with the following
reasons:

Simplicity

This concept can be easily understood with a simple theory;

Why is government-printed money valuable? Because the system says so,

to maintain the cash flow in the market.
The same goes with the cryptocurrency; it also holds an absolute value
and follows a swap system. In contrast, NFT trading is as simple as
investing in something unique with a specific use-case such as a gaming
item and again selling in the market for profit.

Indivisibility

NFTs can’t be divided into smaller units but can only be bought, sold, and
used together. An ideal correlation to NFTs is purchasing an event ticket
that can’t be purchased in parts.

Scarcity

Scarcity is an important attribute that draws attention to NFTs. As

developers have the liberty to get an infinite supply of those assets in the
maximum amount, it’s equally within their power to limit the amount of
rare, desirable items alive.

Uniqueness

NFTs are distinct objects, and also they are not interchangeable. Each
NFT consists of a permanent, unalterable record that describes the value
of the particular NFT. The uniqueness of NFT acts as the similitude of a
certificate of authenticity.

Potentials within Defi Ecosystem

The union between NFTs and Defi is a crucial collaboration conducive to

Defi adoption and NFT adoption. Tokenization has the potential of
creating things more enjoyable within the Defi ecosystem.

Gamification

The incorporation of NFTs and Defi within the gaming industry is making
it profitable alongside entertaining experiences. Users are ready to
create rare items and monetize their efforts.
Artists and gamers — find NFTs attractive as they allow them to create
and own their in-game items.

Identity

NFTs are often used to digitize unique attributes like appearances,

academic qualifications, medical records, and other individual traits.
Digitalization of those personal and unique attributes offers us far better
and greater control over our data.

Art Collectibles

One of the main challenges that bedevil artists is protecting their art
copyright. It makes it difficult for talented artists and other creators to
form a living. NFTs can solve this issue.

Tokenized arts or other creations are often bought and proudly

showcased during a virtual space, with blockchain offering proof of
ownership. It ensures that creators of those creations get a much bigger
cut of the proceeds, including some of the residual, and take advantage
of future sales.

The Expected Future Growth of NFT Marketplace

The unusual rise in NFT trading shows the immense potential of the NFT
marketplace. The evolution of the VR/AR gaming market, speculative
investor interest, the relative stability of gas prices (particularly on
Ethereum), and the possible emergence of dedicated NFT-focused
blockchains. NFTs haven’t yet demonstrated their ability to retain value
over time. Volume is relatively low (but growing), and NFTs remain
highly illiquid.

We recently heard the news regarding a smash hit in the NFT

marketplace when a buyer paid $1.5 million for nine virtual land plots.
It’s a collective mania shared by an increasing number of crypto-savvy
investors. Capitalism is a social aspect, and crypto investors understand
maximizing the utility of monetizing all things within the cyber world.
 101  1

Nft Marketplace Nft Collectibles Nft Nftart Cryptocurrency Investment

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