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Next, what NFT infrastructure should you focus on?

Read this article in 20 Minutes

These companies are building the infrastructure for NFTs to transform from speculative trading assets into productive digital commodities.

Original title: "What's next for NFT infrastructure?"

Original author: Amanda Young, former member of Dapper Labs

Original compilation: 0x9F, Rhythm BlockBeats

Although March brought exciting news to the NFT market (Yuga Labs, < a href="https://www.coindesk.com/business/2022/03/29/opensea-closing-in-on-support-for-solana-nfts/" target="_blank" rel="noopener noreferrer" >OpenSea), but NFT transaction volume is declining. For example, OpenSea's March monthly transaction volume was up from January's high 50% drop.

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Google Trends also reflects the decline in NFT popularity

This decline has triggered the prediction that "NFT is a bubble", but I don't believe that NFT will die. Instead, I look forward to seeing themtransform from speculative trading assets into productive digital commodities. So, who will lead us to the next stage?

After interviewing more than 20 founders, spending hours listening to podcasts, reading books, browsing OpenSea and Discord, I focused on the following specific the promoters.

Entrance

NFT data market Hawku Horse roster includes stats on Zed Run (NFT horse racing game) race performance

Key enablers

Vertical market: as Mable Jiang, "We are on the brink of hyperverticalization in the NFT space". eBay spawned a number of niche markets in Web2, verticals are already present in games (Fractal , Hawku) Arts (Foundation, SuperRare ) Fashion (The Dematerialized, Artisant) land (WeMeta, Parcel) Music (Royal, Sound< /a>, Decent) video (Glass) Photography ( Sloika) professional trading (Blur) and other fields. I like marketplaces that offer curation and discovery, competitive fee/royalty models, passionate communities, and tailored UX and features that are less of a priority for aggregator marketplaces.

Creator Tools: as Li Jin wrote, "The new monetization capabilities provided to creators through encryption are enough to change their lives." As more and more creators enter NFT, Make it easy for them to mint and cash out (Manifold, Metaplex, Remi Labs) simplified payments (MoonPay NFT Checkout, Winter), and managing collections (Reveel) will grow with it. Additionally, game infrastructure (Mythical Games, Magic Eden Games) will be key for creators and developers looking to integrate NFTs into games.

Potential promoters

Discovery Platform: If NFTs are a mechanism to bring a new billion users into crypto, discovery is a key issue. While social browsing platforms (Context.app, Gallery.so, Pulsr) and curated ads (Future NFT Mints, < a href="https://www.premint.xyz/" target="_blank" rel="noopener noreferrer">Premint) is useful for collectors and traders, but games or virtual worlds may be Mainstream users (early examples such as Axie Infinity and NBA Top) to enter the encrypted entrance.

Finance

Algorithmic pricing on NFTBank

Key enablers

Pricing mechanism: No matter what the intersection of DeFi and NFT is, pricing will be a critical first step. As Maria Shen wrote, "The lack of accurate NFT pricing leads to two Two problems: (1) Most NFTs are illiquid (2) Financial derivatives cannot be formed on top of NFTs.” As Nichanan Kesonpat explained, algorithm-driven models (Upshot, NFTBank) are better suited for low-value or "floor" NFTs, whereas assessment-based tools (Abacus) More suitable for high value or 1/1 NFT. While algorithm-driven models are not ideal for subjectively priced NFTs, they are more scalable and applicable to a wider market.

Insurance: The recent NFT hack (OpenSea users, NFT collectors) presents a new opportunity to provide NFT protection mechanisms. Risk Harbor and Nexus Mutual Pioneered in the field of DeFi.

Aggregators: As market fragmentation increases, aggregators (Genie, Gem ) In addition to providing more liquidity, it also plays a role in enabling cross-platform purchases.

Potential promoters

Lending: The widespread adoption of lending as a source of liquidity depends on whether consumer interest shifts toward low asset value terminal market. Lending with NFTs as collateral "mainly related to the growth of the NFT collectibles/artwork market”, but lending or lending NFTs “is more related to the growth of P2E games”. I agree with Jason, mortgage startups (NFTfi, Arcade, Backed) face potential competition from existing DeFi players, while NFT leasing/sharing protocols (reNFT, Vera Labs) due to dependency Market risk due to golden model, experimental market and game compatibility.

Liquidity pool: as by Nichanan Kesonpat, Liquidity Protocol (NFTX, NFT20 ) "opens the buyer pool to those who want to buy any of the same kind of NFT, providing a faster liquidity time than the normal market." Decentralized market maker (Sudoswap, FloorDAO ) can take advantage of these protocols and build services on top of them. So far market leader NFTX has only captured about 60 million USD TVL, limited impact.

Fragmented Ownership: While enabling wider access to NFTs and composability, fragmented protocols (Fractional.art, Bridgesplit) has yet to gain significant influence. Additionally, Rally, the market leader in Web2 collectibles fragmentation, is only valued at ~1.7 on Pitchbook One hundred million U.S. dollars. If you are only investing for financial returns, then with the help of NFT funds (Bitwise, Curated, Flamingo DAO), which can better realize the investment diversification brought about by fragmentation.

Utility

IP NFT listing on Molecule

Key enablers

Bridge to the physical world: Early NFT real-world value mainly comes from social activities (Azuki Garden Party, Ape Fest) and merchandise (Bored Ape Yacht Club Store, RTFKT). I'm excited about mechanisms that can further enable these digital-physical interactions. Additionally, there are endless opportunities to bring documents such as proof of education, concert tickets, and property deeds into the NFT world.

Potential promoters

Mobile devices: as Gaby Goldberg, "We will see native mobile Web3 apps that appeal to the average consumer emerge first." Geolocation (Dropverse, Superlocal) and augmented reality (Anima), especially with virtual worlds When combined with games, it may become an area where NFT and mobile devices collide.

Intellectual Property: Although still in its early stages, Molecule is an interesting example. It uses NFTs to transfer IP ownership of medical research. I look forward to seeing other startups create liquid IP marketplaces through NFTs.

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