Crypto influencer and analyst Tyler Swope says one highly misunderstood altcoin is set to erupt as the markets begin to understand its potential.
According to the crypto strategist, NFT20 is the Uniswap (UNI) for NFTs (non-fungible tokens).
“They have shipped the products [but] the markets just haven’t fully understood what they’re building yet, kind of like Uniswap in its early days, which would make sense. Uniswap is an NFT storefront hiding in plain sight. It just needed a little reworking and that is exactly what NFT20 did.”
NFT20 is an under-the-radar permissionless protocol that allows users to trade, swap, and sell their NFTs. The project also comes with features that enable users to create pools of tokenized NFTs and dutch auctions.
Swope says NFT20 offers a use case that can potentially open the floodgates and allow capital to flow into the nascent space.
“They are a decentralized exchange and protocol for tokenizing NFT projects as ERC20 tokens to make them tradeable on DEXs such as Uniswap or Sushiswap. By creating a secondary market of ERC20 derivatives of NFTs, NFT20 hopes to address the liquidity problem in the NFT space.”
Although the crypto trader notes that volume in NFT20 as a DEX is still quite low, he believes it is poised to follow the footsteps of Uniswap and eventually process over $1 billion in volume per day.
“A similar story is going to happen in my opinion to NFT20. Why? Well at first, lower value NFTs will be deposited to these pools, as people will just want to get some monetary value for some of the more ‘worthless NFTs’ they hodl. Initially, this will create an average price per NFT per project due to arbitrage between NFT markets like OpenSea and Uniswap. It creates the NFT liquidity and average market prices everyone has been waiting for.”
NFTs feature identifying data in their smart contracts that make each asset one of a kind, which means that one NFT cannot be directly replaced by another and no two are alike.
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