- GMoney believes the NFT market is correlated with the overall cryptocurrency landscape.
- He also discussed the future of NFTs and OpenSea 2.0.
In an interview on the “Unchained ” podcast, host Laura Shin discussed various topics of interest with non-fungible tokens (NFT) expert GMoney.
The NFT market experienced a significant downturn in recent times, with a notable decline in activity and value. This shift was especially in contrast to the booming highs of the 2021 bull market.
NFT market closely linked to crypto’s success?
GMoney attributes the slowdown to a broader correlation with the overall cryptocurrency landscape. The interconnectedness of NFTs with cryptocurrencies, particularly Ethereum [ETH], has led to a scenario where the NFT market’s performance is closely tied to the fortunes of major cryptocurrencies.
The concept of a “wealth effect” in traditional markets, where high stock market values lead to increased spending on luxury items, seems to have a parallel in the NFT space.
When crypto prices are soaring, there is a tendency for NFTs to thrive as a unique and crypto-centric way for individuals to display their wealth.
Conversely, during a market downturn, the priority shifts towards accumulating more traditional cryptocurrencies, diminishing the appeal of NFT investments.
Blockchain integrated NFTs termed the future
One key innovation that GMoney finds intriguing for the NFT space is the integration of real-world assets onto the blockchain. This involves linking physical products to the blockchain using technologies like embedded chips.
Moreover, GMoney pointed out underserved markets that could drive NFT adoption, such as the sneaker reseller market.
To illustrate the process, GMoney outlined a protocol where individuals can send their sneakers to a centralized custodian, which issues an NFT backed by the physical sneaker stored securely in a vault.
Owners can then use this NFT as collateral for loans or even sell it. The fungibility of NFTs across platforms allows for flexibility in leveraging them on various lending platforms.
He outlined the shift towards real-world asset integration as a key development over the next three to five years.
Ethereum still king in NFT domain
The Ethereum network, widely regarded as a liquidity hub, extends its influence beyond NFTs to encompass various facets of decentralized finance (DeFi).
Having a significant portion of his assets on Ethereum, GMoney acknowledges Ethereum’s stronghold in terms of value and interest.
While he concedes limited exposure to Solana [SOL], he notes the recent surge in Solana NFTs’ popularity.
The chatter around Solana NFTs correlates with the remarkable price appreciation of the Solana blockchain, experiencing a notable surge in value over the past 60 days.
However, GMoney emphasizes that Ethereum’s entrenched position as a liquidity center, not just for NFTs but also for diverse DeFi tranches, makes it a formidable force that may be challenging to displace.
Talking about NFT marketplace OpenSea, GMoney suggested that introducing a native token could be a game-changer for it. He said the move could potentially boost sentiment and revitalize trading volumes on the platform.