Cryptokitties is one of the games that gained momentum in late 2017, at the height of the cryptocurrency obsession.
In the first few days after the launch of the game "Cryptokitties", users spent more than a million dollars worth of Ethereum on digital artwork of cats.
The game was so popular that it became the first app to generate traffic on the Ethereum blockchain, attracting global news agencies such as Bloomberg and BBC.
“Cryptokitties” was among the first applications to use the “ERC721” standard for Ethereum, which allows developers to create non-fungible digital currencies (NFTs).
The game's popularity has led to speculation that there will be a boom in NFT-based apps.
But the craze has subsided with the advent of Crypto Winter 2018.
Now, NFTs are definitely back.
In fact, the trends we are seeing can be compared to the start of a spike in total value locked in the deFi protocols.
In September, the weekly volume of NFT transactions reached $ 1 million.
By December, that number had risen to $ 2 million.
Unlike in 2017, when trading volume was pulled from a single app, transactions are now distributed across a variety of different apps.
The growing popularity of NFT:
The start of Bitcoin's rise coincided with the launch of Ethereum 2.0 for its early stages, and the Ethereum blockchain is the largest incubator and adopter of non-exchangeable digital currencies.
The news of non-exchangeable digital currencies, NFT, has also become present almost daily on the websites due to its media momentum and huge sales.
The most recent of which is what about selling a work of art containing a "CryptoPunk" image for approximately $ 170,000.
The bright future of NFT:
Although the global gaming market is huge and offers enormous potential for NFTs, another exciting use case on the horizon may be the integration of NFT into the DeFi market.
The year 2020 undoubtedly belongs to DeFi, as the market has grown more than twenty times since last January, according to "DeFi Pulse".
Despite the increasing popularity of NFT, it remains relatively illiquid compared to the rest of the cryptocurrency markets, which limits its value.
Now, a growing number of projects are starting to see the possibility of integrating decentralized finance and NFT projects to enhance the value in both.
Although this is still a very emerging area, the primary emerging feature is allowing NFT holders to share digital currencies in DeFi applications.
So anyone who owns a rare "Cryptokitty", or a plot of land in "Decentraland" can use their NFT as collateral for a loan in the same way that Ethereum is.
From this standpoint, the “NFTfi” project works as it provides a market for secured NFT loans. Once the borrower agrees to participate in the NFT in a smart contract, which will be opened to the lender if the borrower fails to repay.
Currently, the only way to engage in the DeFi market is to participate in cryptocurrencies.
But it is possible that the matter will change in the future as we indicated, as NFT can be mortgaged in exchange for the specified amount of money.
That is, non-exchangeable digital currencies act as a guarantee whose ownership will be transferred to the lender in the event of non-payment and the return of the debt in a timely manner.
The large sales occurring in the NFT market suggest that this market will flourish more in the future, especially with the increase in its use and adoption and the spread of stores that offer such currencies, the most important of which is the increase in user awareness about them and about the value and scarcity they represent.
