Boom or bust, how will DeFi and NFT develop in the future?

Over the past two years, we have witnessed a new class of cryptocurrency startups focused on building financial primitives for the NFT marketplace. As we experienced during the DeFi summer, these projects can be grouped into the following taxonomies:

1. Marketplace – a platform for users to trade NFT

2. Fragmentation – a project that creates the possibility for fractional ownership of NFTs

3. Lending – A platform where users can borrow fungible tokens by collateralizing their NFTs

4. Index – an on-chain investment tool that allows users to own a fraction of an NFT portfolio

5. Investing in DAOs – DAO-based investment collectives that deploy capital into markets defined by governance.

6. Derivatives — financial contracts that derive value from the price of the underlying NFT

7. Pricing – A project that evaluates the value of NFTs and provides pricing data on-chain

8. Leasing — A market where users can temporarily borrow NFTs, usually for playing blockchain games.

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7 thoughts on “Boom or bust, how will DeFi and NFT develop in the future?”

  1. NFTs as tools – NFTs can serve as tools for Proof of ownership, Ticketing, RWA-tokenization. NFT smart contracts can hold metadata about assets, store roles, and other customizable features in a project ecosystem. An example is OCEAN’s data NFTs; they represent the copyright (or exclusive license against copyright) for a data asset on the blockchain. They can be transferred to a new owner and metadata changed to reflect changes. This really eliminates a lot of processes and bureaucracies.

  2. NFTs are long from disappearing, this space has proven to be worthwile exploring and interacting with. Along with most technologies like cosmos or avax, I believe all of this information will be worth hundreds of thousands in less than 3 years or so?

  3. DeFi: An advanced protocol used in interacting with multiple chains with numerous rewarding systems like yielding, staking, investing, loans, etc. With more developmental efforts being given to DeFi platforms like algorithm that eradicates the use of bridges and wrapping of assets when moving assets from one chain to another [Zetachain]. If anything, I am betting on DeFi to edge out CeFi in trading valomes and number of user activities, that is if DeFi doesn’t completely make Cefi history. Let’s face it, the drag back cryptocurrency has experienced in 2022 has mainly been related to the untrustworthiness of CeFi platforms. I expect cryptocurrency users and traders to abandon the Cefi ship as soon as DeFi start implementing simpler to understand protocols for daily cryptocurrency uses.

  4. Well, it’s just the start of it all. But I think the part oracles play in the development of both NFTs and DeFi platforms is what’s quite impressive. That’s why I’m also bullish on the future of LINK, DIA, TRB, and even BAND.

  5. I think there is still no value prop and everything about the space is confused and cluttered with idiots. What advantage do people have from utilising NFTs or DeFI or crypto in general? Pretty much none – most are just interested in making money, a speculative asset

    All this shilling on linkedin twitter about ‘#utility #community #value’ whether bs metaverse apps (how are these still getting so much funding?), NFTs (…), etc

    DeFi i think is more applicable once you start getting into the weeds of ZkProofs and cryptography – maybe these are the lasting implications. But this weird utopia of decentralisation I don’t think is realistic or good – there is little benefit to it. Reminds me of when you a teenager studying politics etc Anarchism is the obvious solution for all…but as you grow a few years older you realise why we have structures in place

    I think also crypto in general has no idea what it wants to be. An asset? A currency? Both? Providing privacy? Providing 0 privacy (i.e visible ledgers…but they are then clouded by not being linked to digital ID). Secure? Or shared ownership? Hierachical or DAO or masquerading as a DAO

    All I have seen in the space is BS, flawed approaches, everyone and their mother is a ‘thought leader’ or ‘web3 pioneer’ or ‘building’ – so who is the actual user? Themselves! But all these people have 0 experience in any sort of working environment – not a bad thing as startups have to come from somewhere, but there is a limit. All these ‘builders’ always hold 10 random inflated roles at ‘companies’ and produce nothing (aka them posting on twitter all day). Metaverse / digital fashion especially. It’s like they all feed into each other – take NFT NYC or NFT LDN – all the attendees were themselves speakers! it’s an excuse for people to feel like they on the inception of the next generation of technology, by blowing smoke up each other around ‘value’ or ‘utility’ whilst providing none and just spouting BS drivel all the time on social media

    I can’t wait for this all to die out. I have – faith in anything crypto, NFT, DeFi (although I do find Defi more interesting and potential for tech usability) . Hell a lot of applications of Blockchain itself are great, without the need for everything to be tokenised or commercialised (Authenticating where John West Tuna Tins come from for example is a cool one). As you can tell I am v cyncial about it all. I worked in the space for a year during the boom, and was in this weird filter bubble of cryptobros and events and conferences – met some incredible, smart people – but so much cringe, noone knows anything about anything, and I still don’t understand why any of this is needed? There are no problem being solved, and no solutions that NEED or REQUIRE any of this to function. It’s all bs smoke and mirrors

    On DeFI more particularly, I think there are technological merits. But I am less convinced on the ability of these to reach general public use. There is simply no need and much more risks, poorer experience, stronger delays, higher fees, easier to make mistakes and be robbed, no insurance, no safety, just chaos

  6. On the nft field, i see a good future evolution. Let ne explain why:

    People have experience now, and the thrash and useless jpgs projects will fade away slowly. Future is on the nfts that bring utilities with them (like chikn on avalanche or the adidas nfts)
    Nfts will get smaller. A market for crypto enthusiasts. I
    Mainstream public is not ready for it because all i hear is that nfts are thrash because of this and the other. They say that while ignoring the rest of the paragraph.

    Well, that’s my opinion


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