NFT Journal: Chapter Nine

It is with great delight that we welcome you to the ninth edition of the NFT Journal. We highlight the past week’s amazing NFT events and some exciting events to look forward to in every edition!

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The Blockchain Wars ⚔️

Launched in 2015, Ethereum is the second biggest and most valuable blockchain in the world. Since then, it’s experienced spectacular growth over the years, establishing itself as the de-facto platform for building smart contracts and developing decentralized dApps.

dApps built on the Ethereum blockchain have entirely cornered the NFT market. A quick look at the top rankings will confirm this. Eight of the leading 10 NFT marketplaces by all-time trading volume are built on the Ethereum blockchain. The most dominant of them all, OpenSea has processed $5bn in transactions over its lifetime controlling about 95% of the NFT market share. That’s not all. The top 10 NFT collections are also all ETH tokens.

Apart from the massive influx of money and talent NFTs have brought to the Ethereum blockchain. The token price has also benefited from the windfall. Last week, heightened demand for ETH from sold-out project launches and pricey NFT collections drove the price back above $4000 for the first time since May highs.

The massive impact of the NFT boom on the crypto ecosystem has caught a lot by surprise, including Ethereum co-founder Vitalik Buterin.

Other blockchains are done being dazed. They’re no longer staying by the sidelines and want a share of the spoils.

Many of these rival blockchains have been using various marketing tactics to attract prospective mainstream and crypto-native users. A popular tactic has been using Ethereum environmental concerns to paint their blockchain in a good light. They’re, however, not wrong. Ethereum’s gas fees are at their highest since May. The main culprits for this surge have been minting fees from NFT collections and fees from NFT marketplaces like OpenSea and Axie Infinity. Interestingly, NFT related projects have also been the primary drivers of the rapid ETH burn rate.

Last week, a couple of Solana <> NFT integrations were announced. Audius, a blockchain-based music platform, announced they were launching some NFT collections on Solana. Already, the Degenerate Ape Academy also on Solana took the NFT markets by storm earlier last month. Like the ETH token, Solana native token SOL has benefitted from the new NFT attention. SOL was the highest gainer among crypto’s top 10 tokens last week, reaching another all-time high price.

Flow, the blockchain behind the NBA’s Top Shot, has also experienced tremendous success in courting mainstream users. Other blockchains like Zilliqa, Dfinity, Tezos, DigitalBits, Waves, WAX, and TRX released NFT integrations last week.

It will be interesting to see if this attention-stealing from Ethereum will stand the test of time.

At NFTYLabs, we also launched our NFTYNetwork website last week. On the site, you can see we’re working hard at providing integrations to not only Ethereum-based NFTs but whatsoever blockchain where NFTs are valued.

Fighting the Upstarts

Blockchains are not the other crypto entities fighting for a piece of the NFT market. Token trading marketplaces want a share in the trading volume Ethereum NFT marketplaces have been diverting away from them.

Binance, in its usual crush-the-competition strategy, has built a blockchain to compete with Ethereum and launched its NFT marketplace to rival the upstarts turn dominant NFT marketplaces. Last week, a top 20 crypto exchange Okex announced their NFT marketplace launch. DEX aggregator 1inch also announced an animated NFT series last Friday. Crypto.com also announced they’d signed a partnership with famous publisher Heavy Metal for their NFT department. The deal will allow book fans to explore Heavy Metal novelties on the Crypto.com invite-only NFT marketplace.

Market RoundUp 🚀

It’s hard to describe what stage of the market cycle we are. Valuations have rocketed to dizzying heights, and everyone is smiling to the bank. OpenSea is bossing the stats as usual. It traded over $3bn worth of transactions in August. Last seven days alone, it’s done over $1.5bn in trading volume.

For the first time in a while, the top 5 most traded NFTs had two new entrants — Mutant Ape Yacht Club and Loot with $212m and $160m in transactions volume, respectively. The introduction of MAYC dropped BAYC out of the top 5 for the first time since we started the Market RoundUp feature on NFT Journal. The top 5 most expensive sales came from the CryptoPunks, BAYC, and Fidenza NFT collections for the past seven days.

On the Investments and Partnerships front, announcements keep pouring in as usual. The global Talent agency United Talent Agency announced last week they’d signed an IP/Marketing partnership with Larva Labs, the famous company behind Cryptopunks, Meebits, and Autoglyph. Very soon, Punks are coming to a theatre near you! 🍿

Last week, other newsworthy events like the NFT proposal, fractionalized Doge NFT, and the fake Banksy art sold as an NFT for $300k happened.

It will be nice to see more NFT tools providing utility beyond buying and selling. Platforms like NFTYConnect that help you get more value out of your NFTs assets are needed now more than ever.

The First Spoilsport is Here 🏈

Sports teams, players, and associations have all been huge fans of NFTs this year. We’ve covered tons of news about them on NFT Journal. Therefore, it was surprising when news broke out last week that the National Football League (NFL) has banned participating clubs from running any NFT-related advertisement or project. This is surprising considering FTX has been securing multimillion partnerships with prominent NFL entities recently. Perhaps the league will exempt those partnerships from the ban.

The news has not, however, stopped other sports from fully embracing NFT spoils. Already, the NBA has witnessed enormous gains from their NFT project -NBA Top Shot. Last week, The International Basketball Federation (FIBA) announced they’d secured an NFT/Fan Token partnership with Bitci. Popular Soccer teams Manchester City of England and Inter Milan of Italy announced NFT projects last week.

We look forward to having the ban lifted and more sports teams adopting NFTs.

At NFTYLabs, we’re building exciting products that will push the frontier of NFTs to greater heights. Make sure you check out our token giveaway announcement and watch out for IDO.

About NFTY Labs

NFTY Labs is a foundation focusing on the growth of NFT ecosystems by building open-sourced, community-based tools that will unlock inherent utility and value within NFTs. NFTY Lab’s goal is to create new applications that offer new utilities for NFTs, and we aim to do this by utilizing a core feature of all NFTs: ownership.

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