NFTX (NFTX): Price, Updates, Recent Developments, Community, Future Events
NFTs have piqued the interest of the digital economy as selling and reselling prices of NFTs soared in the first half of 2021. One advantage of DeFi and blockchain was to provide the means to “bank the unbanked.” In addition, with NFTs growing in popularity as a staple of authenticity, protocols such as NFTX emerged to create a new market to increase exposure to NFT index funds.
As a community-owned protocol, NFTX offers the opportunity for individuals to connect with the NFT market, permitting users to fractionalize their NFTs. In short, the protocol permits dividing a non-fungible token into ERC20 compliant tokens and creating “index funds’ ‘ using multiple “shares” of multiple NFTs. Thus, the protocol creates DeFi tradable ERC20 tokens for individual NFTs.
To date, the NFTX protocol has over $28.97 million in locked assets and a total of 5459 total NFTs. The platform’s vaults include Ethereum’s most known NFTs including Cryptokitties, CryptoPunks, and Hashmasks, each assigned their 1:1 unique token pairing. The protocol also differentiates between NFTs ranks while transacting the same token at the top level.
The platform improved its UX interface as well as its decentralized protocol after launching the V2 version. Specifically, they simplified the Vault creation process and added a 5/0/5 fee rate, decided through their DAO. Moreover, NFT holders can add NFT assigned ERC20 tokens to a liquidity pool through SUSHI and stake their now fungible tokens.
Liquidity Zap is the protocol’s minting process with a 0% minting fee to incentivize NFT additions to the platforms. The minting features decrease the financial entry barrier for users while adding additional value to the network.
On The Flipside
- Users can de-fractionalize their tokens into an NFT, but they are only allowed to retrieve a random NFT.
- Users need to have complete trust in the platform and weigh in the advantages of staking an NFT fraction and losing control of their NFT.
- The market is still speculative in nature despite NFTX creating market floors for tokens.
The Fractional Market of NFTs
Fractionalization of art has been a growing occurrence. Platforms such as Masterworks are splitting art pieces into shares and selling them as commodities.
Similarly, NFTX is offering a decompressed NFT business model that helps create a price floor for NFTs. In addition, it incentivizes NFT’s perception as more than just a speculative asset but follows the DeFi norm of generating passive income through staking.
The company has established a communication process to continue to educate and appraise NFTs globally. The platform recognized Gary Vee’s early interest in NFTs and also highlighted a 1,600 ETH purchase of Punk #2140.
NFTX has beaten the current market trend, growing from the July 20th low of $61 to $260 by the start of August. What’s more, the token outperformed established tokens, strengthening the market’s perception of NFTs.
In addition, ERC20 associated NFT tokens such as MASK or PUNK increased exponentially with NFTX’s growth pattern. With the re-emerging NFT boom, platforms such as OpenSea are aiding in connecting investors with NFTs, leading to a higher valuation for the fractionalized market.
Published By : Investing.com