Can NFT take over DeFi as the new hotspot in the crypto market?

Recently, as the heat of Decentralized Finance gradually cools down, people in the crypto market have begun to search for new investment hotspots. Against this backdrop, NFT( non-fungible token ) seems to be becoming the focus of market attention.

Data shows that as of the end of October, the total trading volume of the NFT market has reached 133 million USD, with over 4.96 million NFTs sold and an average price of 26.9 USD. These figures have shown significant growth recently, contrasting sharply with the decline in the popularity of Decentralized Finance.

NFT is a unique encryption asset, where each token has a unique identification information, making it non-interchangeable and indivisible. This characteristic makes it very suitable for representing ownership of unique items such as artworks and collectibles. Since the beginning of this year, the NFT market has seen some remarkable events, such as a certain NFT project generating over $1.2 million in trading volume in a short period, and an NFT artwork setting an auction record at $130,000.

However, compared to DeFi, the scale of the NFT market is still relatively small. Data shows that the number of active users in top NFT projects is less than one-tenth of that in DeFi projects. The total scale of the NFT market is also only about 2% of the DeFi market. Therefore, whether NFTs can truly take over from DeFi as the new market hotspot remains uncertain.

It is worth noting that the application fields of NFT are continuously expanding. In addition to games and artworks, there are also some explorations in areas such as intellectual property, digital rights confirmation, and identity authentication. This indicates that NFT is seeking broader application scenarios.

However, the current NFT market still has a strong speculative color. Excessive hype may lead to a bubble, which is not conducive to the long-term healthy development of the industry. The maturity and application of NFT technology still need to be tested by the market over the long term.

Overall, although NFTs have recently gained attention, whether they can truly become the next hotspot in the crypto market remains to be seen. The development prospects of NFTs are broad, but there is a long way to go. Market participants need to remain rational and focus on the long-term value of NFTs rather than short-term speculation.