2021-06-04 17:57:24
Altcoin Update: Zilliqa – Week 22The NFT-industry is one of the most promising industries within the blockchain industry. An NFT is a non-fungible token, where data is stored on a digital ledger (blockchain) that certifies a digital asset to be unique and therefore not interchangeable.
NFT-IndustryThe NFT technology has the potential to disrupt and innovate the collectible industry, changing the way people invest in everything in the range of fine arts to fashion. Therefore, the NFT industry is growing significantly, the NFT industry market cap grew by 1,785% in 3 months, trading volume increased by 25x. The most high-profile NFT is nearly sold for 70 million USD, and several artists, athletes, and celebrities are releasing their NFTs. It is safe to assume that the NFT market is booming.
Therefore, several cryptocurrency exchanges are entering the market to capitalize on the trend. FTX, Huobi, and Binance are entering the NFT industry with their NFT trading platforms. Essentially, trying to penetrate the market to ensure market share.
Zilliqa ecosystem designThe unique aspect of Zilliqa is that the ecosystem design is highly beneficial for NFT minting and trading. The ecosystem is highly inexpensive, fast, and accessible for traders by DEXs, Fiat on-off ramps, and CEXs. However, the overall accessibility of the ecosystem will increase, in the upcoming weeks, by the ETH-ZIL bridge. Due to that, the bridge will allow ERC-20 projects to be traded on the ZIL ecosystem without any constraints.
Zilliqa x NFTThe Zilliqa ecosystem is constantly welcoming new projects, especially NFT projects such as XCAD Network and UFF Sports. These projects add value to the Zilliqa and their ecosystem through partnerships with influential athletes and influencers. The Zilliqa ecosystem is currently partnered up with a few biggest of the footballers and influencers in the 21st century. To put it in perspective, the Twitter following of the artists that are listed on the Ecosystem Circle exceed 75 million. Hence, the exposure that the Zilliqa ecosystem is receiving from outside the cryptocurrency industry is significant and allows to increase growth and strengthen their reputation.
First mover advantageThe first-mover advantage is the competitive advantage gained by an initial significant occupant of a market segment. The first mover of the NFT industry is arguably Ethereum with many NFTs launching on their platform, however, minting and trading NFTs on the ETH network is expensive and relatively slow. In general, this is not a huge issue for expensive NFTs, considering the costs will relatively below. However, the NFTs that are worthless as the transaction fees are bound to be worthless considering they cannot be moved out and selling is not feasible either.
The Zilliqa ecosystem allows users to trade and mint their NFTs without any financial constraints. Hence, the case could be made that projects that rely on the masses, instead of minting a few NFTs, could switch over to Zilliqa. The main case that could be made against this assumption is that the Ethereum userbase is considerably bigger, and a launch on a different ecosystem could mean that you miss out on that audience. However, the ETH-ZIL bridge will allow users to engage with the ETH and ZIL ecosystem and benefit from the ecosystem designs of both projects.
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