🔶ANALYSIS OF NFT DEVELOPMENT

The development history of NFT

Seed stage (1993-2017)Seed stage (1993-2017)

The concept of NFT was first proposed by Hal Finney in 1993. Hal Finney published an explanation about cryptocurrency trading cards, but due to the limitations of technological development at the time, NFT only existed in theory.

Prototype (2017)

In June 2017, the first official NFT project "Cryptopunk" (Cryptopunk) was born. In the same year, a game called CryptoKitties pushed the concept of NFT to a climax.

Construction period (2018-2020)

From 2018 to 2020, the NFT ecology has grown on a large scale, and the NFT market size has increased by 825%, showing a significant development trend.

The field of NFT has gradually expanded from games and artworks to fields such as music and sports. The combination of NFT and DeFi has realized GameFi and promoted the further development of NFT.

Rapid expansion period (2021)

In 2021, "Everydays: The First 5000 Days" will be auctioned at a high price of US$69.34 million, officially detonating the NFT market.

VIV3, an NFT auction platform based on the public chain platform Flow, is officially launched. Artists and game studios can use VIV3 to mint NFT tokens on the Flow blockchain, which can be purchased by fans, collectors, gamers and digital asset bidders.

NFT is auctioned on auction platforms such as OpenSea, and the NFT channel has been expanded in multiple directions.

NFT market ecology

The NFT market is growing exponentially year by year. From 2019 to 2020, auction totals nearly tripled from $62.86 million to $250 million.

In 2021, benefiting from the prosperity and development of the DIDI ecosystem, the transaction volume of the NFT market in the first quarter alone exceeded 8 times that of the whole year of 2020, approximately US$2 billion.

Judging from the market situation of different NFT categories, collectibles and artworks account for almost half of the NFT market, while NFT categories such as games, sports, and music are also slowly rising.

Artwork

Although the transaction volume and unit price of the NFT market are relatively small, the active ratio of artists, artworks and collectors greatly exceeds that of the traditional art market.

The circulation efficiency of traditional artworks is low. Relying on the blockchain network, the circulation of artworks on the chain is simple and convenient, and can be auctioned continuously around the clock.

Collection

NBA Top Shots is the first blockchain-based NBA digital collectibles game, launched by the founding team of NBA and CryptoKitties, and supported by the investment of many stars.

Sorare is a digital sports collectible, and its Kylian Mbappe sells for 116.15ETH, making it one of the largest collectibles in 2020.

Virtual world class

In February 2021 alone, the NFT art market expanded to $80 million, while Metaverse and virtual LAND continued to grow, Axie Infinity sales reached 888ETH, and The Sandbox game virtual world sold $3 million of LANDS NFT, more than 2019 and the total for 2020.

NFT auction mainly faces three major problems

• First, the liquidity of the NFT secondary market is poor. Behind the high bidding quota, there are actually only a few NFTs of the giant series in turnover.

• Second, the barriers to entry are too high. The value of the valuable NFT at the head starts at a dozen or hundreds of ethers, which is completely a game for the rich. It is difficult for bidders with small funds to enter.

• Third, NFT empowerment is weak. When the metaverse is still the tip of the iceberg, the gameplay of NFT is also very monotonous, just like airdrop dividends. So in fact, the status quo of NFT auctions urgently needs someone to break through these shackles. ACT is the pioneer in this change.