Blockchain technology can represent any type of asset as a digital (or crypto) asset. For example, real world currencies can be presented as stablecoins, while other assets such as stock, games, and collections can be presented as non-fungible or NFT symbols. And the market for NFTs is growing like a wildfire.
By 2020, consumers have spent about $ 100 million on NFT, according to DappRadar. But that number has risen over 21,900% to $ 22 billion by 2021. Of course, you can buy tokenized assets from some online markets, such as OpenSea and Rarible. But if you don’t want to think about everything individually, you can make money on NFTs by adding some cryptocurrencies to your portfolio.
Here are two great examples.
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1. Ethereum
Ethereum (ETH -5.32%) is a blockchain software powered by the ETH brand, which means that developers can build smart contracts on the platform. In turn, that technology has allowed Ethereum to become a thriving ecosystem of decentralized applications (dApps), with a wide range of NFT markets and NFT-powered video games.
for instance, Decentraland a world where players can buy and sell free pieces of digital land, which can be used for their avatar, and other players, everything is revealed as an NFT. And because those assets are listed on the Ethereum blockchain, trading fees are paid at ETH. Likewise, OpenSea is the most popular NFT marketplace, boasting total revenue of $ 15.9 billion last year. In addition, most of the NFTs listed on OpenSea are on Ethereum, so most transactions are funded with the ETH certification.
Here’s the big picture: Investors are throwing away NFTs, and Ethereum is the go-to gateway for digital assets. In fact, the blockchain accounts for 80% of the NFT market relative to market volume. And while that number has dropped by 15% since the start of 2021, Ethereum is still the leader in the space. For that reason, if NFTs continue to gain traction with investors, demand for ETH should increase, demanding its higher price tag. But that is not the only reason to buy this cryptocurrency.
With more than 2,900 dApps installed on the network, and $ 120 billion invested in DeFi services, Ethereum is the most popular ecosystem of decentralized products in the blockchain industry. And as those products become popular with consumers, the ETH brand needs to become valuable. That’s why this cryptocurrency can benefit you in the long run.
Image source: Getty Images.
2. Axie Infinity
Axie Infinity (AXS) an Ethereum game based on different brands: Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). Like Pokémon, players collect, train, and fight characters called Axies, each with different genetics and battle stats that make them valuable or less valuable. Players can purchase digital land and other items in the game, all of which are displayed as an NFT on the Ethereum blockchain.
How about the symptoms? Players have the opportunity to earn AXS and SLP awards by completing daily quests, going on tours, and competing against players around the world. The AXS symbol is only used for navigation and staking, but both symbols are required to produce Axies, a feature that allows players to combine the genetic characteristics of creatures to create Axies. new (and more valuable).
As a result, all NFTs on the site can be purchased on the Axie Infinity Marketplace, which ranks second in the most popular NFT market in terms of volume of merchandise, according to DappRadar. For the record, players spent more than $ 3.8 billion on the Axie Marketplace last year. And in November 2021, Axie Infinity was listed as the most popular Ethereum game for users on a daily, weekly, and monthly basis.
If Axie Infinity continues to be popular with cryptocurrencies, the demand for the AXS token should increase, which is necessary for the birth of Axie, and because AXS holders can hold the token by earn rewards. In fact, the wage remains at 50.3% annual percentage point after the increase. And as demand for AXS increases, the brand should become more valuable. That’s how this cryptocurrency can help you make money in the booming NFT market.