Having enormous popularity recently, NFTs are playing a key role in the cryptocurrency market. The high demand for NFTs has required platforms where users can trade their NFTs in exchange for other goods.
Additionally, Kraken, one of the biggest cryptocurrency exchange platforms, has launched a special trading marketplace, which allows its users to trade NFTs with digital goods and facilitate loans using collaterals. The ability to have tokens used as collateral is the most prominent feature of the marketplace.
The goal of this platform lies in establishing a marketplace whose utility will expand in various careful duties for NFTs, and promote loans to users who use tokens as collateral, said the CEO of Kraken, Jesse Powell during an interview for Bloomberg media.
Another important point that Powell talked about in his interview covered the history of this year 2021, regarding the evolution of NFTs, which drove the market capital to reach a high income in a short period of time. The interest in NFTs has been increasing each day on a global scale, and it is expected to have a higher demand in the near future. He believes that the platform will engage both retail and institutional investors, thus bringing something different rather than just trading digital arts and keepsakes.
It is worth emphasizing the information about developing this platform that Powell mentioned. His words cited in the interview were: “If you depos’t a CryptoPunk on Kraken, we want to be able to reflect the value of that in your account. And if you want to borrow funds against that.”
The Profit Chasing After NFTs
Kraken is not alone in evolving the NFTs marketplace because it also pursues other exchanges such as Binance, Gemini, Coinbase, FTX, which all contribute to furthering the development of the NFT market. Analysis from other platforms such as nunfungible.com, and the company L’Atelier BNP Paribas show that market growth has reached more than $7 billion, while during the year 2020, there has been a triple increase in investments of NFTs. That is why the NFTs are continuing to bloom and attract more people each day.
According to a Crypto data firm called DappRada, a huge amount of more than $2 billion in just the last month, regarding trading volume has been charged by Opensea, the most popular marketplace for NFTs.
NFTs are considered the new disruption of the crypto industry as it is revolutionizing the life of millions of people. One example is the artist Beeple, who rose to prominence after selling a digital art piece for about $70 million, making him one of the most wealthy artists. In contrast to the cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) among others, NFTs encompass virtual gaming, art, digital trading cards, and real estate. Due to the inability to be exchanged in a direct way with one another, NFTs are part of various types of designated platforms.