The NFT market exploded like nothing else in the crypto community. The NFT market saw a remarkable 131-fold increase in sales over the past year and more than $25 billion in trading volume. NFTs opened up new markets for innovators such as NFT marketplaces and blockchain gaming.
The NFT space is experiencing an incredible growth, but there are still many fundamental issues that prevent further adoption. Most of the NFT platforms have a fragmented user experience. Non-crypto natives find it difficult to navigate the NFT world due to its complex UI and lack of responsive customer support.
The Bottlenecks that Stop Mass NFT Adoption
NFTs are the best way to access the entire cryptocurrency ecosystem. NFTs’ unique cultural aspects make it a compelling argument for people to get involved in the digital revolution. But they are still restricted from exploring the metaverse because of a few bottlenecks.
NFTs are illiquid assets, which is why many people are unsure whether they can be considered an investment asset. The liquidity isn’t concentrated in NFT collections that are not at the top of the rankings, as the demand exceeds supply multi-fold.
Market inefficiencies are caused by a lack of liquidity. NFT owners who want to cash out tend to lower the floor price and increase their chances of selling, leading to incorrect valuations of NFT assets.
Weak Security Infrastructure
The NFT space has seen security become a major concern. Hacks and exploits are occurring every day and criminals are stealing digital assets and NFTs worth millions of dollars. Recent cases have shown that NFT marketplace smart contracts contain a bug that allows hackers to steal or purchase NFTs at a lower price than the market value.
NFT marketplaces face information security issues due to plagiarism. OpenSea recently revealed that more than 80% were either stolen or fake NFTs. Although the marketplace has reversed the free minting feature of the NFTs, spam content remains, taking credit from actual artists.
Real-World Utilities are lacking
NFTs are most valuable when the price appreciates, or the owner receives cash flow. However, most NFTs lack these utility characteristics in the initial stages.
Owners are unable to access liquidity or explore other investment opportunities in the real world, while still maintaining their ownership. NFT holders are limited in their ability to create passive income due to the large market gap between DeFis and NFTs.
Deedy: Multi-Chain Web3 Platform that Intersects DeFi and NFTs
Deedy, a web3 platform that supports multi-chain capability, allows users to easily create and distribute NFTs. The platform provides users with a range of products that are created using both DeFi and NFTs, which helps to overcome the above mentioned bottlenecks.
Deedy’s marketplace features many NFT categories such as music, art, photography, metaverse and fashion. Through a launchpad, Deedy allows creators to share their work with the community. A unique royalty feature ensures creators are well-incentivized.
Deedy uses an escrow system to address security concerns and protect NFT trades. Deedy charges $15 per swap, regardless of asset valuation, unlike other marketplaces.
Deedy also offers the option of renting. NFT owners have the option to rent their assets out to gamers who want to earn a passive income stream. The smart contract manages the transfer of ownership. The NFT is returned to the owner after the rental period has ended. This could have a major impact on the blockchain gaming industry.
Deedy has added DeFi functionality to NFTs and is now introducing a platform for peer-to-peer lending. This model is capital-efficient. Borrowers can use NFTs to secure loans. Users can use their NFTs as collateral to borrow money.
Are Deedy and other platforms able to drive mainstream adoption?
The platform’s product line, Deedy is designed to lower entry barriers for users who wish to explore the metaverse and NFTs. It promotes gig economy by bridging gap between creators, users. It can attract mainstream audiences to the web 3 world, and help them capitalize on new trends. Any platform that connects the real and metaverse with financial products and efficient services will see significant growth and capitalize on huge market opportunities.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.