NFT: unexpected return

Posted on November 3, 2022, 7:05 pm

The golden age of NFTs is long gone and yet more and more platforms are once again vying for interest in non-fungible tokens. The size is surprising. Previously limited to two main platforms, OpenSea and Rarible, non-reproducible images are spreading to different applications such as Instagram, Telegram messages, fintech Revolut or Reddit.

Some will say that these actors are exogenous to him “Web3” (ie not using blockchain) come after the fight as the NFT market is down 30% in value in 2022, according to the Nansen 500 index, and 90% in volume, according to KPMG. Others will see it, instead, as a flexible technological tool that can be extended beyond a domestic sphere.

Winter not cold, not crypto

Twitter had withdrawn the first in January, allowing fans of CryptoPunks and other Azuki or Bored Ape Yacht Club to display them in profile picture , as long as you subscribe to the paid Twitter Blue offering. Now, Elon Musk’s social network is persevering and adding the ability to buy from the platform.

I waited since spring Instagram didn’t get cold from the crypto winter, either bad noise about metaverses of its parent company. The platform announces this Thursday the arrival of NFTs, as planned, in its application. Based on the Polygon blockchain, these tokens can be created and sold within the app itself. Enough to herald a new revenue stream for creators. And a boost to NFT volumes?

Four cards for 1.2 million

That’s not all. In late October, secure messaging service Telegram also announced the launch of its marketplace. Above, rare user IDs are sold in NFT. Built into the TON blockchain, the four-letter addresses have already been hashed out, evoking the phenomenon Ethereum name service . One of them even went for more than $1.2 million, just to remember this year’s golden hours speculation 3.0 .

For Andrew Rogozov, one of the founders of the TON foundation, Telegram users can now prove the authenticity of their identity online. This may have also sparked followers of the Reddit forums, who spent $1.5 million worth of NFT avatars in one day.

Reddit overtakes OpenSea

Registered on the Polygon blockchain, these avatars were created in a number of 44,000 by around thirty artists. They are sold from 10 to 100 euros, then appear as a profile image like on Twitter. According to the site “Cryptoast”, Reddit managed to carefully avoid mentioning the word NFT to sell its images, preferring to talk about the avatars of the collection. According to Dune Analytics, most don’t even know they’ve earned an NFT; it is a long time ago when the three magic letters were enough on their own.

The volumes traded here are far from the billions of dollars they used to be The open sea in 2021. However, Reddit has recorded 3 million account creations in its Vault digital wallet (which is used to store its NFTs). A figure to be weighed against OpenSea’s 2.3 million registered, but number one in the industry.

From Revolut to Microsoft

There are more surprising. British fintech revolution in which created an instant messenger with the intention of becoming one “Great App” , also offers NFT profile images, according to specialized media “The Block”. These tokens follow the launch of Revcoin, a cryptocurrency tailored for financial applications.

Even the American gamestop launches, in early November, its NFT market. Its specialty: it focuses on arguments related to the so-called games of play to win (playing for money), in order to build bridges with its activity as a video game distributor. At the same time, Internet users have discovered that Microsoft – which however has bans NFTs in his Minecraft game – would also prepare its market. Who else ?

Stepn, a Web3 app that rewards physical activity in crypto, announced its NFT marketplace the same week. With an innovation: it offers a subscription.

Less dependent on ads

All in all, nearly ten very similar announcements in about ten days… Hear, hear, who doesn’t have his market yet?

“It’s unprecedented to see these companies building Web3 brick-and-mortar projects while the market is at half-assed,” notes Stanislas Barthélémi, Blockchain Partner consultant from KPMG. For him, the driving force behind this renewed interest is that “crypto adoption continues to grow and NFTs are better understood.”

Perhaps the most surprising is yet to come. According to the expert, this new youth of NFTs “reflects an inversion of the economic model of Web 2.0 players”. Heavily (too?) dependent on online advertising, including the outlook for 2023 they look bad because of the international situation social networks “would find in arguments a new way to make money and keep their audience”.

In this game, a new catalyst can accelerate the process: Elon Musk. The new owner of Twitter has never hidden his appetite for crypto. Notifying that certified accounts can cost $8 per month he has de facto crossed over to a future where profiles can be paid for, and possibly, in NFT.

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