Decentralized finance has become the center of attention throughout most of 2020, sparking talk of a renewed alt season, with many believing that mass adoption of DeFi will be coming within the next three to 10 years. Nevertheless, other sectors in the space have also been gaining traction.
Nonfungible tokens are a perfect example of this. An NFT is a tokenized version of an asset, digital or otherwise. They are similar to stablecoins, for example, but are used to represent nonfungible assets like artwork, real estate or collectibles instead of a fiat currency. Popular applications for these tokens include virtual games such as CryptoKitties and Decentraland.
These types of tokens and associated projects have been on the rise this year, especially recently. In the first week of September, NFT sales came close to $1 million, according to NFT data resource NonFungible.com. In the last seven days, however, almost $2 million worth of NFTs have exchanged hands.
Following DeFi’s footsteps,