NFT volume breaks $133 million, can it take over DeFi as the new market focus?

The focus in the crypto assets field is quietly shifting. As the heat of Decentralized Finance(DeFi) gradually cools, industry insiders are starting to turn their attention to new narrative directions.

Recently, the non-fungible token (NFT) market has shown a significant growth trend. As of the end of October, the total trading volume of NFTs has reached 133 million USD, with over 4.96 million NFTs sold at an average price of 26.9 USD. These figures have seen significant improvement over the past month, seemingly taking over the heat of Decentralized Finance.

NFT is a unique digital asset, with each token possessing the characteristics of being non-fungible and indivisible. It is this scarcity and uniqueness that endows NFTs with a strong property attribute of private ownership. This year, the NFT market rapidly gained popularity through a project called "Pineapple." Interestingly, this project was initially created to satirize short-term DeFi projects, yet it generated over $1.2 million in trading volume within 24 hours.

This event has triggered an innovative wave of DeFi+NFT in the industry. Various NFT artworks and collectibles have started to enter the trading market, with one blockchain artwork sold for a high price of $130,000, setting a new record for NFT auctions. Well-known IPs like Batman and the NBA have also launched NFT collectible cards.

However, the NFT market size is still relatively small. Data shows that the active users of top NFT projects are less than one-tenth of similar DeFi projects. The total scale of the NFT market is also only about 2% of DeFi. This round of NFT craze is largely driven by speculative behavior brought about by high yields.

In fact, NFTs are not a new phenomenon. The CryptoKitties project in 2017 was the first practical application of NFTs, but it failed to sustain long-term due to limitations in application areas and target audiences. This year, NFTs have gained popularity again, entering the market's view under the influence of high returns and strong marketing.

From the perspective of the entire industry, it is worth noting that NFTs are exploring broader application scenarios. In addition to games, collectibles, and artworks, fields such as intellectual property, digital rights confirmation, identity verification, and electronic tickets are also attempting NFT technology. This shows that NFTs are exploring more possibilities, but at the same time, a favorable development environment is also needed.

Currently, the NFT market still has a strong speculative atmosphere. Although attention is needed, excessive hype may push it to the forefront. The market needs to remain calm, and technological development also requires repeated validation and practice. Innovation certainly comes with a cost, but it should not be a huge bubble caused by speculation.

The future development potential of NFTs is limitless, but the road ahead is still long. Whether it can truly take over the heat of Decentralized Finance remains to be seen over time. In this rapidly changing world of Crypto Assets, new narrative themes may emerge at any moment, which are worth our continued attention.