Editor’s Note: Please do your own research before investing in any crypto assets. This article is not financial advice.
Non-fungible tokens (NFTs) have mushroomed in 2021. Numerous cryptocurrency enthusiasts and investors are just waiting to get in on the growing market. But what are NFTs, and which NFT projects have the most substantial potential?
Why are NFT tokens so popular?
NFTs are unique or non-fungible digital tokens that run on Ethereum and other blockchains smart contracts. They can distribute assets and verify their authenticity via the blockchain.
The concept of NFTs emerged in 2015, and the first projects were launched in 2017. NFTs are used to sell exclusive items, such as collectibles, online. Because each token is unique and cannot be replicated, the use of NFTs creates a scarcity that makes them valuable to collectors, artists, and other sellers. They are bought and sold in auctions, with payment happening in cryptocurrencies like Ether (ETH), Solana (SOL), or soon also on Hathor(HTR).
The future of NFTs includes their application in the growing field of decentralized finance (Defi), where the tokens can be used to deposit valuable assets such as rare collectibles, lotteries, or even real estate as collateral for loans or as financial contracts…
