NFTX, as its name suggests, is all about NFTs! But what is it exactly offering? NFTX is an Ethereum-based protocol that helps you convert your NFTs to ERC20 tokens (called funds), buy, sell, or stake your NFTs instantly, earn yield and trade your funds on DEXs like Sushiswap and Uniswap. NFTX protocol was launched in January 2021, and according to an interview with ChopChop, NFTX’s core contributor, their primary mission is to bring more liquidity to the (often highly illiquid) NFT scene by acting as a bridge toward DeFi composability, making NFTs productive along the way. The NFTX project also has its own token, which has the name as the project itself, NFTX.
NFTX creates a bridge between NFTs and DeFi ecosystem, which is designed to develop and trade funds based on your favourite collectables, such as CryptoPunks, Axies, CryptoKitties, and Avastars, directly from a DEX like Uniswap. All of these funds are ERC20 tokens backed by NFT collectables.
Vault creation comes from the heart of the NFTX protocol and allows users to deposit their NFTs into an NFTX vault and then mint a fungible ERC20 token.
As mentioned above, after creating a vault, we can mint fungible ERC20 tokens. But what is the point of minting? Let's have a quick look at what can we do with these fungible ERC20 tokens.
N.B: AMM is the short form of the Automated Market Maker (AMM), a type of decentralised exchange (DEX) protocol.
NFTX works with two types of funds, including D1 and D2. Follow me to the next section to learn about each of them.
D1 is the basic fund in NFTX and consists of NFTs and ERC-20 tokens. To clarify a bit, imagine that you own five NFTX basic CryptoPunk fund tokens. In NFTX Protocol, the token code for these CryptoPunk funds is PUNK-BASIC. Therefore, you will be able to convert your PUNK-BASIC tokens for any five primary CryptoPunk NFTs at any time you want. Anyone holding any type of NFT can join the capital pool minting fund and exchange any NFT in the pool with D1 fund tokens.
D2 Funds comprise the underlying fund tokens in D1; for example, in the NFTX protocol, D2’PUNK-CORE consists of five different D1 CryptoPunks, including PUNK-BASIC, PUNK-FEMALE, PUNK-ZOMBIE, PUNK-ATTR-4, PUNK-ATTR-5. It means PUNK-CORE contains 20% of each D1 fund, and each D1 fund comes at certain prices. For details on Crypto types and features, you can visit NFTX’s website.
NFTX Protocol provides benefits for collectors, investors, content creators, and more.
The main red flag with the NFTX protocol is the long sideways trend in prices may make NFTs less popular than they were.
NFTX platform was launched in January 2020 with the purpose of creating liquid markets for illiquid Non-Fungible Tokens (NFTs). Its main intention was to focus on the multi-layered NFT index funds. The next version of the NFTX protocol, NFTX v2, is in progress, focusing on smart funds, increasing gas efficiency and generating yield for Liquidity Providers (LPs).
Today on Apr 20, 2022, each NFTX token is sold for around $122, with a circulating supply of 420 thousand NFTX coins and a total supply of 650 thousand. NFTX’s current market cap rank is #610 among all the crypto projects in the market. Data from Coingecko.com shows that the NFTX token had a 5% decrease in price over the last year; however, NFTX recovered its price within the last month and provided a 37% growth in price for investors. The current price is -78.6% lower than when the token touched its highest price at $499 on Feb 16, 2021, and is 553.5% higher than NFTX’s all-time low when the price dropped to $16 on Jan 05, 2021.
The NFTX token supply is 650,000, and the distribution is as follows:
Disclaimer: Don’t take this article as financial advice. You need to DYOR (Do Your Own Research) before investment.
NFTX could be a promising project since it has shown strong potential lately. However, it’s worth noting that crypto experts have merely predicted the prices based on the current performance and the market trends. Nobody can foresee the future, so it’s wise to consult a financial advisor before making any investment decisions.
According to the recent performance of the NFTX, it is predicted that the price can rise to a minimum level of $114.51, a maximum level of $138.72, with an average trading price of $118.99 by the end of 2022.
Some experts predict that in 2023, the price of NFTX will touch a minimum level of $161.51. The NFTX price can reach a maximum level of $199.96, with an average price of $166.27.
In 2024, the price of NFTX is predicted to reach a minimum of $237.30, a maximum of $277.72, with an average trading price of $243.95.
By the end of 2025, each NFTX could be traded at the average range of $372.04, with a minimum of $362.29 and a maximum of $413.40.
Now you know that creating liquid markets, easier NFT price discovery, and earning yield on the most liquid decentralised NFT marketplace is not a far-fetched dream and can be possible with NFTX. Although every crypto project comes with many concerns and the crypto world is volatile, the protocol looks promising, based on the recent progress in NFTX. All in all, we are no financial advisors, and you need to do your own research. Here at Cryptologi.st, our main goal is to provide useful content that helps you invest with confidence!
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