Most of the buzz in the crypto community for the past few months has been around NFTs and with exciting new use cases being thought of almost daily, it's easy to understand why this is the case. Already in 2021, we have seen the launch of NBA Top Shots whose market capitalization is more than $1.9 billion USD at the time of writing, making the project more valuable than the median NBA franchise!
We’ve also seen long-standing records in the art world be challenged by comparatively unknown artists like Beeple, whose artwork was famously sold by Christie’s auction house for $69 million USD, making it the third highest-priced artwork sold by a living artist! But behind these headlines, there is another story of monumental gains unfolding that only those plugged into crypto likely know about. The story we’re talking about is the draw-dropping amount of growth experienced by the tokens that underpin the NFT ecosystem and we think this trajectory is set to continue!
Recent Token Performance
Launched in July 2020 by the team behind Rarible, $RARI was the first governance token in the NFT space.
$RARI is earned by participants for actively using the platform and gives them the right to vote on the future direction of the platform including voting on platform upgrades, content curation, and moderation decisions.
Since launching, the RARI token has undergone a meteoric rise from $0.51 USD at launch to $44.63 USD at the end of March 2021 representing an 87.5x increase in token price.
Flow is the token that underpins the Flow blockchain for open worlds. The developers describe it as a fast, decentralized, and developer-friendly blockchain, designed as the foundation for a new generation of games, apps, and the digital NFT assets that power them.
The token itself is a low-inflation token used by validators, developers, and users to participate in the FLOW network. It is used to transfer fees, serve as collateral, and participate in protocol governance decisions.
The Flow token has already increased 28.5x in 2021 from $1.39 USD in January to $39.49 USD in April and with more projects joining the protocol we expect big things ahead.
WAXE — Wax Economic Token
The WAXE token was the result of WAX moving to the Ethereum blockchain and was allocated to WAXP holders who burned their WAXP tokens. The WAX platform positions itself as the world’s leading decentralized video game and entertainment network and is used for creating games, Dapps, and NFTs.
Some of the notable parties that have created their own NFTs on the Wax platform include Deadmau5, Atari, Topps, William Shatner, Capcom, and others.
The WAXE token was trading at $166.75 USD in April 2021 up from $0.019 USD for WAXP holders who held tokens from January 2020 and converted to WAXE. This represents a whopping 8776x increase in token price which is absolutely mental on any scale.
ENJ is the currency used min NFTs on the Enjin platform. The platform runs on the Polkadot protocol and has been built for tokenizing virtual assets in video games. Each digital NFT asset minted with the ENJ token can be melted down, converting the NFT back into ENJ.
Enjin lets users store their entire gaming inventory directly on the blockchain and lets them trade, sell and soon stake their assets.
After launching at $0.02 USD in 2017, Enj hit $2.54 USD in March 2021 representing a 127x increase for holders over the period.
Undoubtedly we are going to see more tokens launch serving different use cases in the NFT space, and we think given the expected growth in the space as a whole there will certainly be some tokens that follow similar paths to those above.
One token we clearly have our eyes on (not biased!) is obviously our soon-to-be-launched CoinDogg token (DOG) which is dropping in just a few short hours on Exmarket’s launchpad.
By no means take this as investment advice, and always do your own research, but we believe the world is only at the start of realizing the full potential of NFTs and what they could mean for the application of blockchain technology. And we’re excited to see what the future holds.