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In April, the market capitalization of non-fungible tokens exceeded $25 billion for the first time. And this is just the beginning. Every week, the NFT sector is replenished with new tokens from global celebrities and emerging artists who have received equal access to users and their money. Last week, the world of crypto enthusiasts discussed the launch of the NFT token from Eminem, as well as a new platform for selling non-interchangeable tokens from CoinGecko, and today investors are ready to buy real estate in the form of non-interchangeable tokens, receiving loans on DeFi platforms.

To the moon: NFT Market Continues to Take Off

According to the CoinGecko resource, the daily trading volume of NFT tokens is about $3.1 billion. The market leaders are CryptoPunks with a weekly trading volume of over $16 million, SuperRare — $2.9 million, Decentraland — $2.4 million, Sorare — $2.2 million. However, the NFT sector is only in its infancy and is not yet close to the peak of its popularity, which is likely to occur at the end of 2021. The growth will be driven by the popularization of the Non-Fungible technology itself, which allows you to digitize the ownership of a certain item and transfer them to other users.

In general, the technology itself will allow you to create entire patent offices and patent ownership rights for inventions and improvements, as well as digitize the rights to other objects, such as real estate, mining, and more.

For example, at the end of 2020, the Huobi cryptocurrency exchange, together with the Rosgeologia organization, considered the option of tokenizing 3,000 licenses for the extraction of precious metals, such as palladium and platinum. These are real assets that have high liquidity. Digitized mining rights can be a “second wind” for the NFT market.

The real estate market moves to NFT

Another area of development of the NFT market may be the digitization of real estate rights. So in the 2021 stamp, investor Ivan Malpika issued an NFT on the Mintable platform, tied to a 50% stake in a residential building in the American city of St. Louis, Missouri. This non-exchangeable token, the first in the real estate industry, costs 42.42 ETH, or about $91,000 at the exchange rate on April 20.

And in April, realtor Shane Dulgerov put up for sale with the help of NFT a house in California, and a psychedelic video about it. The video and the property are up for auction on the OpenSea site with a minimum bid of 48 ETH, or about $102,000 at the current exchange rate. There are 4 days left until the end of the auction, but no one has placed a bid yet.

President of IBREA (International Association of Blockchain Real Estate) Henry Elder went even further and suggested that you can take loans for the purchase of real estate in the form of an NFT token on the DeFi platform. This will create a new financial ecosystem that will unite crypto-finance and the real estate market.

“Imagine if I could buy a house as an NFT and instantly borrow under an NFT using DeFi or TradFi products with an interest rate of 2-4%. Why would I damage my brain by using Wells Fargo? or Chase, with their months of nightmarish scrutiny? “

Conclusion:

The NFT sphere goes through the stage of a strong hype when the hype overshadows possible real-world applications. Right now, most people are skeptical about the topic of non-interchangeable tokens, but NFTs help to eliminate many of the problems described above.

This is also facilitated by the fact that there are already many options for using unique tokens that are not divisible. Thus, we can safely say that tokenization is an inevitable process that will simplify life in many areas of activity by reducing bureaucratic costs.

Now the NFT sphere is only in its infancy, so in the future it will undergo major changes, possibly becoming a full-fledged part of people’s lives.

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Source: https://hackernoon.com/the-nft-economy-non-fungible-tokens-paired-with-defi-a51o3422?source=rss