The crypto sector has so many distinct features that place its heads and shoulders above other sectors in the financial market. One of such features is the sector’s diversification to accommodate other sectors. This is possible through the ever-dynamic ledger technology that houses several projects in the sector. One such project that the blockchain houses are non-fungible tokens, or NFTs. The blockchain allows artists to list and sell their NFTs while buyers purchase them. In this article, we will look into the top 5 biggest NFT projects by market cap in the crypto sector.
What are NFTs?
Non-fungible tokens are digital tokens that represent unique real-life items. These items can either be artwork, music, video, or something classified as an artifact. In simpler terms, one can class NFTs as the digital certificate that shows that a particular person owns a real-life asset. NFTs have information that determines their uniqueness, which means that another NFT cannot replace them. Unlike fungible tokens like Bitcoin, two NFTs can never have the same identifying information. NFTs were created based on indivisibility as no one is allowed to cut out a unique artwork and own a part of the artwork. However, there have been experiments on fractionalized NFTs among investors in recent times.
How Do NFTs Work?
The crypto sector houses fungible tokens like Bitcoin and still houses other non-fungible tokens based on the Ethereum blockchain. Some NFTs platforms that use Ethereum to host their NFTs use the ERC-721. Aside from Ethereum, other blockchain houses NFTs with adequate support and tools for traders to create smart contracts. Some of these platforms include Solana, TRON, and EOS. The smart contracts and NFTs allow traders to add information that would enable others to recognize it as the original. They can add details like the identity of the owner of the piece and metadata. The proof of authenticity and ownership determines how rich an NFT is in the market.
Where Can You Purchase NFTs?
Although NFTs have been in the market, the concept looks very new for now. This is because only a few people adopted it during the period when CryptoKitties first launched. However, with the growing adoption rate of prized digital assets, we have seen a list of marketplaces where traders can purchase NFTs. Below is a list of NFT marketplaces in the crypto market.
- OpenSea: This platform boasts the highest number of users in the NFT sector. This is one of the reasons why it has the biggest trading volume in the market. OpenSea opened NFT trading to mainstream attention and has since onboarded more than one million users. Presently, it ranks in the top place due to the platform’s simplicity.
- Binance: Binance NFT marketplace is also another go-to NFT marketplace. Although it has not attained a huge status, it has a very high number of users. This is down to its cheap and easy-to-navigate website. It offers NFTs across its chain and Ethereum. It also has a mystery box feature for NFT traders to win gifts. Traders can also leverage the crypto exchange platform to purchase tokens that can, in turn, be used to purchase NFTs.
- NFT Launchpad: This platform ranks as one of the most exciting in the NFT market. Although it just launched some months ago, the platform has attracted many followers. Traders can choose from various NFTs on Binance Smart Chain and Polygon. It has one of the easiest minting processes and allows users to make their pages during minting.
Why Are NFTs Booming?
NFTs projects have gained mainstream attention since the start of the year, and it is predicted to continue into the future. Although NFTs have been around for a while, they recently started gaining massive attention, which has led to them seeing booms. One of the reasons for their surge has been tied to the mainstream attention the crypto sector has received. With more traders opening up to the sector, most of them are excited about owning NFTs, which can either be minted for cheap or bought and sold for much higher. Another reason is the promotion of popular figures. For example, former Twitter CEO Jack Dorsey sold his first-ever tweet some months ago, recouping massive gains. Some artists and traders also see the NFT market as a way to showcase their works and sell them. With this, they can list their works which can be bought.
Top 5 NFT Projects In The Market By Market Cap
With NFTs moving rapidly to establish their presence in the crypto market, knowing which NFT projects are doing well is paramount. This is because the market is saturated with so many projects. Some of these projects do not have a good standing; hence they are doomed to fail. Below are the top 5 NFT projects in the crypto market;
The ApeCoin project is a product created in the decentralized market by Yuga Labs of the Bored Ape Yacht Club. The ApeCoin was created solely as the native token within the APE ecosystem. The ecosystem was built by the APE foundation. The token was created on the Ethereum blockchain, which means that its security bordered on the network’s Proof of Work consensus. ApeCoin presently sells for $17.31 with a trading volume of $1,895,324,635 in the last 24 hours. It also has a market cap of $4,931,258,196, with about 284 million APE tokens in circulation.
The Decentraland project entails a VR platform that is housed on the Ethereum blockchain. The platform lets users create and monetize their content. Users are allowed to build plots of land into houses which can be used to make money on the platform. Although users can develop their plots how they like, they are subdivided into districts. The platform has a total of 90,601 LANDs which are each represented by an NFT. The native token of the platform, MANA, is trading at $2.04 with a trading volume of $171,989,361 in the last 24 hours. It has a market cap of $3,752,945,114 and a circulating supply of 1.8 billion MANA tokens.
The Sandbox ($3,170,926,438)
This project first entered the crypto market in 2011, bringing users a world of virtual gaming experience. In the game, users can build, sell and buy digital assets on the platform. The Sandbox provides a very conducive gaming environment for users through DAO and NFTs. Its native token, SAND, is presently trading at $2.47 with a trading volume of $245,365,454 in the last 24 hours. The token has a market cap of $3,170,926,438 and about 1.5 billion SAND tokens in circulation.
Theta Network ($3,146,239,150)
The Theta Network is a network that was developed to provide streaming services. Users of the network share bandwidth and other resources peer-to-peer. The project was launched in 2019 and had both co-founders of YouTube and Twitch as advisers. The developers aim to disrupt the streaming industry by eliminating centralization and providing users with a better experience. The native token of the network THETA is presently trading at $3.15 with a trading volume of $169,996,706. It has a market cap of $3,146,239,150 and one billion THETA tokens in circulation.
Axie Infinity ($2,793,916,942)
The Axie Infinity project provides a gaming platform where users battle to earn tokens through trading and battling. The game sees users collect, breed, and battle with creatures called Axies. Each Axie is a unique body part or creature and is an NFT on its own. Sky Mavis created the game in 2018. Most of its developers are based in Vietnam. Its native token AXS is presently trading at $45.87 with a trading volume of $206,142,625 in the last 24 hours. The token has a market cap of $2,793,916,942 and about 60 million AXS in circulation.
Should I Buy NFTs?
NFTs have been doing pleasantly well in the crypto market since they entered the limelight like every other new market. From 2020 until now, there has been a massive amount of volume being traded in the market. Marketplaces like OpenSea make it easy for traders to mint and list their NFTs for sale. However, choosing to purchase an NFT solely depends on what you intend to achieve from it. Some traders decide to purchase NFTs for profits in the long run by selling the items, while others want to keep the artworks. However, traders need to be wary of bad actors and fake platforms when making NFT purchases.
Although the NFT market looks pretty new, the market has been moving in strides in the last few months. Traders who intend to enter the market to purchase items should be wary of the platforms. This means that they should conduct in-depth research into any platform and understand how they work before choosing to commit to them.
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