BitOffer Institute: Farewell to Food Coin, ETH ETF Becomes the Winner
While the second half of the year 2020 came, Compound farm made DeFi have a peak. From June to August, in such only 2 months, the total value locked on DeFi surged from $1b to more than $10b. After then, food coins such as Sashimi, Kimchi, Sushi, etc. Came out.
Since September started, the drop of DeFi tokens reached more than 50%, even tokens like LINK, MKR which are well-performed also experienced a huge decline. What’s more, food coins like SAL, KIMCHI, SUSHI gave out changes that are more than -70%. The situation made DeFi be colder than before.
Recently, DeFi+NFT became hot. The reason why it attracts the market’s eye-contact should be counted on Crypto Kitties which combined scarcity into cryptocurrency. Usually, the ERC-20s we trade are fungible tokens which means that they are totally the same, even the price.
However, ERC-721 tokens such as tokens from Crypto Kitties are all unique, which is called Non-fungible tokens. A non-fungible token (NFT), also known as a nifty, is a special type of cryptographic token which represents something unique; non-fungible tokens are thus not mutually interchangeable by their individual specification. They insert NFT tokens to each crypto kitties as their DNA that makes each kitty is unique. In this way, users can raise their own cat, and get cat babies to be born, then sell them on the cryptocurrency market. In 2018, a crypto kitty named “Dragon” was sold at $170,000.
In some way, Crypto Kitties stimulated DeFi+NFT to be popular, countless institutions started issuing their own ERC-721 tokens. Until now, DeFi+NFT has been applied in the areas of game and collection. Game developers started integrating NFT into digital objects then created crypto dinosaur, Crypto doggies, etc. UBISOFT, a giant video-games publisher even developed an entire game based on NFT, and launched NBA Players Cards which can be traded. In addition, digital artists also inserted NFT into their artworks.
As more and more institutions joined, another bull run shall be expected on DeFi market. As for now, DeFi+NFT only occupied a small share of the cryptocurrency market. It still has a huge developing space in the future. Actually, the basic reason why DeFi+NFT stuff can be hot is due to the reason that the coming soon ETH 2.0 brings us more imagination and creative possibilities.
On the other way, DeFi+NFT developed contributed more fees to Ethereum. This fact improved the circulation and scarcity of ETH, and it would push the price of ETH to move up. As ETH price kept rising, the demand to ETH and its derivatives such as ETH ETF will be magnified. Especially ETH ETF on BitOffer.com, with its automatic positions adjustment mechanism and compound calculation, the profits of ETH ETF on BitOffer will be 3 times to 17 times higher. Moreover, due to it requires 0 margin, which means liquidation will never happen even it brings leveraged profits. Time for building up ETH ETF positions, and make yourself be a winner while the day comes.