Bitcoin, Ethereum Bull Ark Invest Says These 3 Categories Are Driving The Explosive NFT Growth

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) bull Ark Invest has identified three categories driving the “explosion in growth” of non fungible tokens or NFTs.

What Happened: Frank Downing, an analyst for Ark noted that One-of-one pieces, Avatars, and In-Game Assets were the three categories driving NFTs.

One-of-one pieces span multiple mediums and include both digital and generative artwork, music, and 3D renderings, as per the analyst.

See Also: How To Buy Non-Fungible Tokens (NFTs)

Avatars are one-of-N collections such as “CryptoPunks” and “Bored Ape Yacht Club.” Purchasers use these to represent their digital personas on social media profiles.

In-game assets are NFT-based items that are tradable across platforms in play-to-earn games such as Axie Infinity (CRYPTO: AXS), wrote Downing.

The analyst for the Cathie Wood-led firm pointed to brands such as Budweiser and US Open experimenting with NFTs in order to drive customer engagement.

See Also: Top 10 NFT Projects By Weekly Sales Volume: Loot Leads Way, PUNKS, VeeFriends, Doge Pound Gain On Week

Why It Matters: Downing noted the surge in trading volume of NFTs in August as decentralized marketplace OpenSea crossed a record-breaking $3 billion in monthly volume.

In July, NFT volumes stood at $248 billion, so the August numbers represent a 12-fold rise. Even so, “many investors find the intrinsic value of NFTs difficult to grasp,” Downing noted.

The analyst cited the example of the “Loot” collection to make his point. Downing said that the project includes 8,000 NFTs, each of which contains a plain-text list of “randomized adventurer gear” but there were no images, stats, rules or roadmap included.

In July, Ark had said that NFT growth remains strong and had tracked the growth of OpenSea, CryptoPunks, and Axie Infinity.

Read Next: Axie Infinity (AXS) Is The ‘Foundation’ Of An ‘Emerging Economy’ That Is Play-To-Earn Games, Says Ark Invest

(Excerpt) Read more Here | 2021-09-08 02:35:00
Image credit: source

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