After the boom in the crypto industry another blockchain-based sector that saw tremendous growth in the financial years, 2020 and 2021 was the market of Non-fungible tokens or NFT. NFTs have gained a lot of popularity more than it was ever anticipated. The technology being this latest, has gained a lot of momentum.
The non-fungible tokens (NFTs) have been breaking records of their sales over and over in 2021 and this has attracted the attention of a lot of crypto enthusiasts and investors.
Unlike cryptocurrencies such as Bitcoin, Ethereum, Polkadot, etc, NFTs (music, sports, digital arts, etc) cannot be exchanged directly for another. The increased prevalence of digital collections has made these NFT tokens more scarce.
Any investor who is willing to explore the NFT tokens before their next investment move must consider these top 5 NFT tokens that people are investing in 2021.
Read about the top cryptocurrencies people are investing in 2021.
|Token||Rank according to Market Cap||Market Cap||Circulating Supply|
Source – CoinMarketCap
Axie Infinity is a blockchain-based game. It is a battling and trading game that is operated as well as partially owned by the players. NFT based online games are not new. They have been in the market since 2017. However, they gained tremendous popularity in 2020-21. It all started with crypto kitties and there was no looking back for NFT based gaming and trading blockchain protocols.
However, Axie Infinity is undoubtedly different from all its predecessors. With a market capitalization of more than $ 7 billion (at the time of writing) with projected revenues of more than $1 billion in this year, it won’t be an exaggeration to say that Axie Infinity has gained quite an amazing success.
It was inspired by the popular game Pokemon. The gameplay is extremely open-ended and flexible allowing players to collect various digital pets called Axies. These Axies can then be raised, traded as well as battled across the entire Axie ecosystem. It was the number one Ethereum-based gaming Decentralized application in August 2021. It is also one of the most popular DApps in terms of unique user counts with nearly 1 million unique weekly users.
The native token of this NFT platform is AXS. While Axies are NFTs in themselves AXS is used for various in-game transactions. It is also a governance token that allows users to exercise their governance rights and put forth their say on how the funds present in the Axie Community Treasury should be spent.
Theta is a video streaming platform backed by a blockchain. It was launched in the year 2019 and the mainnet of Theta operates as a decentralized platform where users can share the computing resources as well as bandwidth in a peer-to-peer network. This project was advised by some of the big names in the industry such as Steve Chan, co-founder of YouTube, and Justin Kan, co-founder of Twitch.
The native NFT token of this platform is THETA. It performs governance tasks within the platform and counts enterprise validators such as Google, Gumi, Binance, etc along with a guardian network that comprises thousands of community-run nodes.
The developers of this platform believe that Theta has the potential to shake up the video streaming industry in its current form. The current streaming industry has poor infrastructure, costs a lot, and is highly centralized. This often leads to poor user experience. The content creators also earn less revenue because of this. Therefore, Theta is believed to have the potential to overcome all these issues in the near future.
The primary issue that Theta aims to resolve is to decentralize video streaming, edge computing, and data delivery making the entire process economical, efficient, and fair. The internal economy of the blockchain protocol is powered by two native tokens THETA and TFUEL. The revenue generated by Theta is threefolds- the content creators improve their earning, viewers get rewarded with a better streaming service and video platforms save their money on building infrastructure as well as increasing subscription and advertising revenues.
The users even get rewarded for watching and sharing the content in the form of TFUEL tokens.
Also, read about the top 5 DeFi cryptocurrencies people are investing in 2021.
One of the leading digital currencies for entertainment as well as sports, Chiliz has been taking the NFT world by storm. It operates the sports entertainment platform Socios which is also blockchain-based allowing users to participate in the governance of their favorite sports brands.
There are various fan tokens offered by Socios.com which is a way to connect the fans with the sports club and associations and unlock new revenue systems.
The fans can easily participate and influence the club-related decisions via polls and surveys. The primary aim of the company is to reduce the gap between being an active and a passive fan. Chiliz was brought into fruition after partnerships with some of the biggest sporting institutions around the globe such as Juventus Turin, FC Barcelona, Paris Saint-Germain, and Manchester City. It also has partnerships with gaming organizations and UFC.
Chiliz pioneered the participation of fans directly into the decision-making process of organizations and clubs. It has been constantly striving towards formulating new ways of engagement for the fans with their clubs and organizations. It is indeed one of the pioneering projects the NFT ecosystem and the modern world have seen.
Enjin Coin is a project under Enjin which is an ecosystem of interconnected blockchain-based gaming products. Enjin Network is a blockchain-based social gaming platform allowing users to create their clans as well as websites and also chat and host virtual item stores.
It even allows the developers of the game to tokenize the in-game items on the blockchain protocol. Enjin Coin is an ERC-20 token that backs the digital assets that are issued while playing. These digital assets which are basically NFTs (Non-fungible tokens) can be traded, bought, and sold with a definite real-world value.
Every asset that is minted on the Enjin platform contains ENJ (Enjin) which is a minting resource that is locked inside NFTs and is removed from circulation. There are various benefits of minting the blockchain assets using ENJ such as:
|Ensures scarcity and transparency|
|Gives instant liquidity|
|Infuses the blockchain assets with a reserve value|
|Serves as a utility within the game and apps|
Defining itself as a virtual reality platform, Decentraland is an Ethereum powered blockchain allowing users to experience, create and monetize applications and content. In this virtual game, users can buy plots of land and can monetize these pieces of virtual land.
Launched with an initial coin offering of $24 million in 2017, decentraland went public in February 2020. A wide range of experiences has been created and enjoyed by the users. There are two tokens of Decentraland called MANA and LAND. MANA is an ERC-20 token that must be burnt to acquire the non-fungible ERC-721 LAND tokens. The in-game tokens such as avatars, names, and wearables are paid using MANA.
If you are a business, content creator, or an individual looking for a new artistic medium for a business opportunity or merely a source of entertainment, Decentraland is the right place for you. The decentraland gameworld is called Metaverse which is divided into 90601 parcels of LAND each represented by an ERC-721 non-fungible token. Although, the holders of LAND are free to develop their plots into whatever they want each plot in the Metaverse is divided into various districts each having its unique size and theme. Individual crowd sales for MANA tokens are used to generate these districts and the parcels within these districts cannot be traded.
After the world was taken by storm with the rise of cryptocurrency and NFTs, the NFT tokens have been in great demand. With every passing day, the market capitalization of the NFT tokens is increasing. Every next crypto enthusiast and investor is interested in learning the functioning behind these top NFT tokens. The above discussed top 5 NFT tokens are what people are most interested in 2021, leading to enhanced market capitalization. One must consider these top 5 NFT tokens before they plan their next investment move.
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Disclaimer: It is advisable to dive into an investment after conducting thorough research. The article is not aimed at any financial advice. *All prices are as of October 25th, 2021.