Blockchain

The following points need to be considered when purchasing NFT

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The non-fungible token (NFT) field of the cryptocurrency ecosystem has made waves and even made headlines in mainstream news media in 2021. Celebrities, musician, Sports team, Established auction house and even a fast food shop Participate in creating and/or selling unique digital projects.

With the emergence of top NFT markets such as OpenSea Record trading volume Because projects like CryptoPunks and Pudgy Penguins are valued at tens of millions of dollars every day. However, it can be challenging to know which projects have the ability to maintain or add value over the long term, and which projects may fail once the hype subsides.

The NFT project is suitable for the ever-growing crypto-metasphere and provides a variety of ways to participate and earn income, such as playing earning and betting functions, attracting the attention of ordinary investors and institutional participants.

Below are some of the top Metaverse-ready NFT agreements with potential long-term staying power, and instructions on how to find these diamonds in the increasingly crowded field of NFT projects.

Game money-making platforms attract the masses and generate revenue

Axie Infinity has become one of the breakthrough agreements in this bull market cycle because its game-making style allows users to earn income while fighting in-game characters called Axies.

Contrary to the free game model loaded with in-game purchases designed to deplete the user’s bank account, the funds spent on platforms such as Axie Infinity allow the opportunity to earn income or a considerable return on investment due to decentralized finance (DeFi) And economic principles such as mortgage, inflation and scarcity are designed into the game model.

The Axie Infinity ecosystem recently surpassed 1 million daily active users And processed a historical transaction volume of US$1.373 billion, according to To data from CryptoSlam.

The agreement has seen Highest adoption rate In areas of the world like Malaysia and Venezuela, people’s economic struggles allow players to get 150 to 200 smoothing love potions (SLP) per day-valued between US$23.70 and US$31.60 at the time of writing-an attractive The source of daily income.

With the Venezuelan government Formulate Calculated at the exchange rate estimated by the central bank of the country, monthly income is equivalent to US$2.40, and a daily income of US$23.70 may support a family for up to 10 months.

Due to these factors, compared to many random NFT projects that just beautify jpegs, NFTs in the Axie Infinity ecosystem are more likely to maintain their value and maintain a higher level of liquidity over time.

Token generation NFT provides collectible utility

Another project that mixes DeFi, gameplay, and NFT in a unique way is Aavegotchi, a platform built on the Aave protocol that can combine the avatar in the game with other cryptocurrency assets, which can then be used as DeFi collateral Products and get pledge rewards.

There are few incarnations of Aavegotchi called Gotchi, only new ones Limited casting times It is released every year through auction or lottery.

Users who pledged local GHST tokens on the agreement are rewarded in the form of FRENS, which can be used to purchase raffle tickets. These raffle tickets can be used to purchase in-game items such as wearable devices, consumables, or Gotchi Summon Portal.

These items can then be combined with Gotchi’s to increase their rarity and value, or sold on the market as another source of income for token holders.

The ability to lock other tokens or assets into Gotchi adds another layer of value and rarity to each avatar. In order to withdraw any increased assets, Gotchis is destroyed in the process, resulting in increased scarcity.

At the time of writing, according to Aavegotchi statistics, 7,760 portals have been opened and 432 Gotchi’s have been sacrificed, leaving 7,328 Gotchi’s circulating supply with different characteristics and rarities.

Cross-asset mortgage and gameplay complete the meta universe

One final project that is newer on the scene but still attracts attention is Iluvium, an open-world fantasy battle game built on Ethereum (Ethereum) Blockchain.

Although the project is still under development, the price of its native ILV token soared by 1765% between June 22 and August 13, because it was exciting before its launch.

One of the catalysts for its price increase is the introduction of ILV collateral, which allows token holders to obtain a return rate of 43.44% to 86.88%, depending on the length of time the token is locked.

Illuvium also provides cross-asset collateral through flash pools, giving Axie Infinity (AXS) and Synthetix (SNX) holders the opportunity to earn ILV by staking their tokens on the protocol.

One method the team used to attract attention to the project is to create unique NFTs that represent some of the top crypto influencers, and the team also provides a steady stream of trailers and updates about the characters and NFTs in the game.

For many years, creating AAA games on the Ethereum blockchain has been a goal sought after by the gaming community, but so far, network restrictions have made it impossible.

If Illuvium can achieve its goal of creating highly interactive and visually appealing games that can attract users in the traditional gaming community, then the assets and NFTs in the ecosystem may maintain or increase value over time.

Gamers spend hundreds of hours and thousands of dollars on some of the most popular free games every year. These games provide opportunities to buy rare items that allow them to stand out from the competition, but ultimately have little value in exchange for all the time and expense.

NFT provides a new paradigm for the game, that is, the time spent in the game and the spoils obtained along the way can be transformed into real-world value with long-term lasting power. Projects that adapt and integrate with the ever-growing decentralized encrypted metaverse are in a major position in gaining adoption and value.

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