Top NFT Coins by Market Cap
The NFT market cap today is $15.9 Billion, a -2.1% change in the last 24 hours. Read More about NFT
Non-fungible tokens, or NFTs, are collectible elements within the Ethereum blockchain that usually follow the ERC-721 or ERC-1155 standard. They represent something unique and therefore are not mutually interchangeable. In other words, no non-fungible token is the same. NFTs take advantage of innovative smart contract technology to store and record unique information on the blockchain, which means that whenever an NFT is created, only one of it verifiably exists. NFT creators can also encrypt details such as rich metadata or secure file links allowing people to create all sorts of digital assets which are verifiable such as videos and songs. With NFTs, one can digitally certify that an asset is authentic.
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What Are NFT Coins?
NFT Coins are cryptocurrency coins that are used to support the NFT ecosystem, and they are different from NFTs. NFT Coins are token currencies used to power the economy of NFT projects and just like other cryptocurrencies, you can invest or trade NFT Coins. Unlike NFTs, NFT Coins are fungible. This means that they can be exchanged with other NFT coins of the same value.
The growing popularity and increase in value of NFTs, has also rubbed off on NFT Coins. NFT Coins have been getting a lot of attention from investors and traders in recent years. A great example is Axie Infinity. The NFT blockchain game utilizes its native token, AXS, to power staking and voting. This maintains the game's play-to-earn economy, which makes AXS, Axie Infinity's NFT Coin.
Other NFT Coins like SAND and SLP assist decentralized programs by facilitating various vital functions from being an in-app currency to acting as governing tokens. These coins are not only being used to support the growth and economy of NFT but they are also used to support near-future developments like the metaverse. For example, since the creation of the metaverse, NFT Coins have been used behind the scenes to support NFTs and these NFT Coins are being used to create transactions and support the economy in the metaverse.
Are NFT Coins Different From NFTs?
The primary way NFT Coins differ is their fungibility. NFTs (Non-Fungible Tokens) are a representation of specific digital or physical asset. These assets are typically traded on an NFT Marketplace. NFT Coins, on the other hand, are fungible and can be traded or exchanged for another NFT Coin of a similar value, typically traded on a cryptocurrrency exchange.
Let's clarify. To convert a digital object (such as an image or video file) to an NFT, you need to 'mint' or put the digital object on the blockchain as a token. Unlike a coin, each token has unique properties and therefore not directly interchangeable with one another. This is why NFTs are non-fungible, which has created a market of trading and flipping NFTs.
Fungible items on the other hand can be exchanged with one another without losing value because their value is not tied to their uniqueness. An example of a fungible item is a dollar bill. Every $1 bill has the same value, so exchanging one bill with another bill that has a different serial number will in no way reduce the value of the $1 bill.
The reverse is the case with NFTs. Each token is unique and is not always worth the same amount as other similar tokens. Due to the uniqueness of each NFT, the economics between supply & demand for a specific NFT can lead to a surge in perceived value. As an extreme example, the most expensive NFT sold was priced at $91.8 Million at the point of sale.
Common Utility for NFT Coins
NFT Coins have excellent utility in various NFT projects, from being transacted as in-game currencies to being traded as a means of exchange. Here are some examples of their use cases.
1. Metaverse Land NFT Purchase
Decentraland is a virtual world in the metaverse universe or better still a Virtual Reality real estate, where users interact via the internet through Virtual Reality and Augmented Reality. With MANA, its NFT Coin, users can buy parcels of land (land NFTs) and other digital assets in Decentraland. Aside from the purchase of land, landowners can create hotels, concert stages, casinos, etc. And charge people for access in MANA. MANA holders can also participate in the governance of Decentraland.
2. In-Game Monetization
NFT Coins can be used for in-game monetization. For instance, SAND is an Ethereum based utility token that is used to trade in the Sandbox metaverse. The Sandbox is a virtual world where users monetize their gameplay. With SAND, Sandbox's NFT Coin, users can personalize, build and monetize their gaming experience. SAND accumulated through gameplay can be used to customize avatars, purchase equipment, and acquire assets such as land and other products available in the Sandbox marketplace. Sandbox users can populate the land they buy with NFTs and games. They can also participate in governance decisions.
3. Smart Projects Facilitation
NFT Coins are rapidly becoming the primary currencies used in facilitating smart project platforms. A great example of this is Tezos. This is a decentralized open-source blockchain solution that creates a conducive platform for the deploying of smart projects and the execution of peer-to-peer transactions. The native cryptocurrency or NFT Coin that governs the Tezos platform is the Tez (with the symbol XTZ). The NFT Coin enables the platform to offer low-cost transactions for users in NFT, DeFi, and Metaverse ecosystems.