The past year has seen a surge in interest and investment in crypto assets, with a particular focus on non-fungible tokens (NFTs). NFTs are digital assets that are unique and cannot be replicated, making them ideal for use cases such as collectibles, gaming, and identity verification.
With the rise in popularity of NFTs, there has been an explosion of new projects and platforms launching in the space. This has led to a corresponding increase in the prices of many NFTs, as investors seek to profit from the hype around this new asset class. So, which NFTs have performed the best over the past year? Here are the five top-performing NFTs of 2020. First is the Decentraland (MANA) – Up 1,600%, Decentraland is a virtual world platform that uses blockchain technology to create unique, immutable land parcels.
How to purchase a crypto NFT
These parcels can be bought and sold by users, and used to build virtual homes, businesses, and experiences. The Decentraland platform also features its own cryptocurrency, MANA, which is used to purchase land and goods within the virtual world. MANA tokens surged in value throughout 2020 as the Decentraland platform gained in popularity, culminating in a massive 1,600% price increase over the course of the year. Second is the Axie Infinity (AXS) – Up 1,470%, Axie Infinity is a digital pet game that allows players to collect, breed, and train cute little creatures called Axies.
These Axies can then be used in battles against other players, with the prize being ETH cryptocurrency. The game also features an in-game marketplace where players can buy and sell Axies, and other virtual items. The popularity of Axie Infinity surged in 2020, as the game became one of the most popular Ethereum-based dapps. This led to a corresponding increase in the price of AXS tokens, which rose by 1,470% over the course of the year.
The benefits of owning a crypto NFT
Third is the Cryptokitties (CKTY) – Up 1,300%, Cryptokitties is a digital collectibles game that allows players to purchase, collect, and trade virtual cats. These cats are each unique, and can be bred to create new generations of cats with different characteristics. The game also features an in-game marketplace where players can buy and sell cats, and other virtual items.
Cryptokitties was one of the first blockchain-based games to gain mainstream popularity, and its success led to a surge in the price of CKTY tokens in 2020. The price of CKTY tokens increased by 1,300% over the course of the year as the game continued to grow in popularity. Fourth is the Decentraland (LAND) – Up 1,200%, Decentraland is a virtual world platform that uses blockchain technology to create unique, immutable land parcels.
What factors will influence the future performance of NFTs?
In recent times, the cryptocurrency industry has been growing at an alarming rate. This can be seen by the increasing number of Initial Coin Offerings (ICOs) and security tokens offerings (STOs). The success of these offerings is mainly dependent on the performance of the underlying cryptocurrencies or tokens. Most of these projects are built on Ethereum network which uses smart contracts to issue and manage tokens. In this article, we shall explore some of the key factors that will determine the future performance of NFTs or Non-Fungible Tokens.
First, we will look at how fungibility affects the value of a token. Then we will discuss three important factors that could affect the performance of NFTs – scalability, utility and regulation. The rise in popularity of NFTs has been driven by a number of factors, including the increasing adoption of blockchain technology, the growth of the gaming industry, and the proliferation of digital collectibles. These trends are all expected to continue in 2021, which should lead to continued growth in the NFT market. In addition, the launch of new platforms and projects, and the increasing media coverage of the space, are also expected to drive further interest in NFTs. As a result, we expect that the prices of many NFTs will continue to rise in 2021.