In the second half of 2020, Commpound launched "liquid mining", which made DeFi a hit. From mid-June to late August, in just over two months, the amount of DeFi lock-ups rose from 1 billion US dollars to more than 100 With billions of dollars, the entire cryptocurrency industry has once again witnessed the "blockchain speed". Since then, many DeFi projects have sprung up like bamboo shoots after the rain. SAL (salmon), KIMCHI (kimchi), SUSHI (sushi) and other ingredients are collectively launched online, and the names of all the vegetables in the vegetable garden have not been left.
However, since September, DeFI tokens have fallen by more than 50%. Old DeFi tokens such as LINK and MKR have all been cut. The new generation of DeFi vegetable garden sub-tokens, such as SAL (salmon), KIMCHI (kimchi) and SUSHI (sushi) generally fell by more than 70%, triggering the DeFi fever.
Recently, the DeFI+NFT zoo has become popular. The reason why it has quickly attracted people’s attention is related to the CryptoKitties project developed by Dieter Shirley and his team. The innovation of the project The point is to combine scarcity with cryptocurrency. ERC-20 tokens are called homogeneous tokens, that is, every digital currency is the same and the price is the same. For example, Bitcoin, the price of each spot is 10,000 US dollars.
But Shirley’s ERC-721 makes each token unique, that is, non-homogeneous token NFT, which is a token with uniqueness and indivisibility, and each token is unique. Indivisible and interchangeable. They embedded these NFT tokens into each encrypted cat, similar to the genetic code of these cartoon kitten images. Each encrypted cat has its own unique "category", and users can raise their own kittens to breed new ones. Cats, rare crypto cats can be traded on the crypto market. In 2018, a cat named "Dragon" sold for a sky-high price of 170,000 US dollars, which once attracted the attention of the market.
The popularity of CryptoKitties stimulated the DeFi+NFT market, and many institutions quickly released their own ECR-721 tokens. So far, DeFi+NFT applications are more in the field of games and collectibles. Game developers began to integrate NFT into digital objects, and developed game pets such as encrypted dinosaurs, dongles, and encrypted rabbits. The French game giant Ubisoft even developed a complete game around NFT, that is, an online trading NBA player card based on ERC-721. And digital artists also use this as a carrier to add to their own art works and make various non-homogeneous collections.
With the entry of more investment institutions, it is expected to drive the next wave of DeFi bull market. At present, DeFi+NFT only accounts for a small part of the crypto market, with a total market value of less than 300 million US dollars. There is still a lot of development in the future. space. The reason why DeFi+NFT can become popular is due to the fact that Ethereum brings digital currency into the 2.0 smart contract era, which enables digital currency to have a broader application imagination and creativity.
In turn, the development of DeFi+NFT has contributed more transaction fees to Ethereum, promoted the circulation and scarcity of Ethereum, and promoted the price of Ethereum. And as the price of Ethereum continues to hit new highs, people’s demand for Ethereum spot and Ethereum ETF funds will increase, especially BitOffer’s Ethereum ETF funds, which have added an intelligent dynamic position adjustment mechanism and fund compound interest calculations. It is more than 3 times higher than the spot, up to 17 times, and there is no margin system, and there is no risk of liquidation. By then, it will become the digital currency asset that speculators compete for and become the biggest winner.