Things have calmed down a bit in the bear market around NFTs . In recent months, the trading volume of NFTs on OpenSea has dropped significantly. But the NFT market is still changing and evolving, creating new opportunities for investors to profit with NFTs in the future. Which blockchains are currently relevant on the NFT market? In this article, we discuss the current situation around NFTs and list the top 3 blockchains for NFT in 2023.
What are NFTs?
NFTs are non-fungible tokens. These are digital assets based on blockchain technology. As the name suggests, NFTs are non-fungible. This means that these tokens cannot be reproduced and are therefore unique. NFTs have a unique digital signature.
The NFTs have become known above all through a new art market for digital art objects. But also in the area of
Do NFTs still have a future?
In recent months, the trading volume of NFTs has decreased. Of course, this was mainly due to the crypto bear market, where not only interest in cryptocurrencies per se, but also in all projects based on the blockchain is falling. Furthermore, the implosion of the Terra network caused a decline in interest in blockchain projects.
In the coming months and years, like the crypto market, the NFT market should become bullish again in the future. In addition, many large companies such as Starbucks, Nike, Adidas, and Gucci have entered the market. A mass adoption should follow in the next few years so that we should see a value explosion in the NFTs again in the future.
Top 3 Blockchains for NFTs
Certain blockchains have positioned themselves on the NFT market in recent months. A large part of the NFTs is based on these 3 blockchains:
Ethereum is the clear number 1 among NFTs. Most NFTs and the large and well-known NFT collections (e.g. Bored Ape Yacht Club ) are based on the Ethereum blockchain. This development naturally came with the pioneering role of the Ethereum blockchain in smart contracts. Furthermore, the majority of the top NFT marketplaces (OpenSea, Rarible, etc.) have emerged on Ethereum in recent years.
Solana is the second major blockchain dominating the NFT market. The network is considered one of the fastest-acting blockchains on the market and impresses with its very high scalability. The basis is provided by the innovative proof-of-history consensus mechanism. His advances in NFTs in particular caused a price explosion in 2021. Many NFT projects are based on the Solana blockchain and there are separate NFT trading platforms for Solana NFTs.
After a long sluggish development in Cardano use cases, the network recently announced that it is number 3 in terms of revenue in the NFTs segment. Cardano is considered by many investors to be the theoretically most efficient blockchain on the market. Nevertheless, in practice, progress was sluggish in the NFT and DeFi areas. But in the future, Cardano could develop a big dominance in the NFT market.
Are NFTs worth it?
The trading volume of NFTs has decreased in the last few months and we see the hype around the non-fungible tokens abating. But lower interest and prices can also be a great opportunity for smart investors. Right now, you could invest cheaply in projects that could see a sharp increase in value over the next few years.
The most well-known NFT trading platform is OpenSea . At OpenSea you will find hundreds of NFT collections to choose from if you wish to purchase NFTs. OpenSea offers the most users and therefore also the most buyers. Famous NFT collections such as the Bored Ape Yacht Club can be purchased on the platform.