• Here are a few things to think about before buying NFTs in the altcoin world

  • The Metaverse is waking up, and NFTs are laying the groundwork for a new economy in which users can effortlessly store and transfer wealth.

    In 2021, the nonfungible token (NFT) sector of the cryptocurrency ecosystem caused such a stir that it grabbed headlines in even mainstream news publications. Celebrities, entertainers, sports teams, well-known auction houses, and even fast-food restaurants have all gotten involved in the development and/or selling of one-of-a-kind digital products.

    Top NFT marketplaces like OpenSea are enjoying record-breaking trade volumes, with projects like CryptoPunks and Pudgy Penguins exchanging tens of millions of dollars every day. However, determining which initiatives have the potential to hold or increase in value over time, and which ones are likely to fizzle out once the enthusiasm wears off, can be difficult.

    NFT projects that fit into the burgeoning crypto metaverse and provide many methods to engage and earn a return, such as play-to-earn and staking features, have been gaining popularity, attracting both average investors and institutional participants.

    Here are some of the best metaverse-ready NFT protocols with long-term potential, as well as tips on how to recognize these diamonds in the ruff among an ever-growing field of NFT projects.

    Platforms that allow people to make money by playing games attract a large number of people.

    Axie Infinity has emerged as one of the breakout protocols in current bull market cycle, thanks to its play-to-earn style of gameplay, which lets users to have fun while earning money by competing with in-game characters called Axies.

    Unlike free-to-play apps that are loaded with in-game purchases designed to drain a user’s bank account, funds spent on platforms like Axie Infinity allow for the possibility of earning an income or a decent return on investment, because decentralized finance (DeFi) and economic principles like staking, inflation, and scarcity are built into the gameplay model.

    According to CryptoSlam data, the Axie Infinity network has topped one million active daily users and has handled $1.373 billion in total volume.

    The protocol has experienced the most widespread adoption in countries like as Malaysia and Venezuela, where people’s economic hardships make the 150 to 200 Smooth Love Potion (SLP) a player can earn each day — worth between $23.70 and $31.60 at the time of writing — a tempting source of daily income.

    With the Venezuelan government adopting a monthly income of $2.40 at the country’s central bank’s expected exchange rate, a daily income of $23.70 could theoretically feed a family for up to ten months.

    Because of these qualities, NFTs in the Axie Infinity ecosystem have a better chance of keeping their value over time and maintaining a higher level of liquidity than many other NFT projects that are essentially glorified jpegs.

    NFTs that generate tokens give collectibles usefulness.

    Aavegotchi, a platform based on the Aave protocol that allows in-game avatars to be merged with other cryptocurrency assets, which can subsequently be used as DeFi collateral and earn staking incentives, is another project that provides a new approach on combining DeFi, gameplay, and NFTs.

    Aavegotchi avatars, also known as Gotchis, are extremely rare, with new ones being minted just a few times per year and distributed via auction or raffle drawing.

    Users that stake the protocol’s native GHST token earn FRENS, which can be used to buy raffle tickets for in-game products like wearables, consumables, and Gotchi summoning portals.

    These things can then be combined with Gotchis to boost their rarity and worth, or sold in the marketplace to provide token holders with further cash.

    The ability to store additional tokens or assets in a Gotchi increases the value and rarity of each avatar. Gotchis are destroyed in the process of extracting any more assets, increasing scarcity.

    According to Aavegotchi Stats, 7,760 portals have been opened and 432 Gotchis have been sacrificed, leaving a circulating supply of 7,328 Gotchis with varied attributes and rarity levels.

    The metaverse is completed by cross-asset staking and games.

    Illuvium, an open-world fantasy battle game built on the Ethereum (ETH) blockchain, is a final project that is fresh on the scene but gaining traction.

    While the project is still in development, the price of its native ILV token increased by 1765 percent between June 22 and August 13 as anticipation for its introduction grows.

    The introduction of ILV staking, which allows token holders to earn a dividend ranging from 43.44 percent to 86.88 percent depending on the length of time tokens are locked up, was one of the drivers for its price surge.

    Illuvium has also introduced cross-asset staking via flash pools, allowing holders of Axie Infinity (AXS) and Synthetix (SNX) tokens to earn ILV by staking them on the network.

    The crew has employed a variety of methods to raise awareness for the project, including creating distinctive NFTs that symbolize some of the top crypto influencers, as well as providing a regular stream of teasers and updates on the characters and NFTs that will be discovered in the game.

    The construction of a AAA-rated game on the Ethereum blockchain has long been a desire of the gaming community, but network restrictions have rendered it impossible thus far.

    Assets and NFTs inside the ecosystem have the potential to sustain or rise in value over time if Illuvium can achieve its goal of generating a highly participatory and graphically appealing game capable of attracting gamers from the traditional gaming community.

    Gamers spend hundreds of hours and thousands of dollars each year on some of the most popular free-to-play games that allow them to buy uncommon items, giving them an advantage over their opponents, but little value is left at the end of the day in exchange for all that time and money.

    NFTs provide a new gaming paradigm in which time spent playing and treasure obtained along the way may be converted into real-world wealth with long-term value. Projects that adapt and integrate with the decentralized crypto metaverse’s expanding adoption and value are in a great position to succeed.

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