• This is how NFT madness pushed up the prices of Litecoin, MATIC, and other altcoins

    • NFTs have seen an exponential increase in volume over the last year.
    • The NFT market is expected to grow by 300 percent by 2020.
    • MATIC has seen a 3 percent increase in just 24 hours.

    When NFT madness took control of the crypto-refrain, the Internet was inundated with NFT references, examples of overcoming adversity, and obviously, a lot of publicity. Non-fungible tokens have risen dramatically in value over the last year in the crypto-community. In reality, the NFT market increased by nearly 300 percent in 2020, with NFT deal volume reaching $2.5 billion in the first half of 2021. Obviously, this was a significant increase from $13.7 million in the first half of 2020.

    Following the rise of Cryptopunks and Apes, NFTs emerged as a significant trend, with 8 September witnessing one of the largest NFT events in history, with over 18K+ locations competing to mint 7000 NFTs from an assortment called The Sevens.

    This contributed to the most notable recorded mean gas value, contacting over 5k Gwei in only 10 minutes. Aside from increased retail revenue, the rise of NFTs was also influenced by a flood of institutional financial backers.

    NFTs stealing altcoins?

    High retail and institutional premiums have been critical to the crypto-rise, refrain’s but NFTs only have an impact on the market. An intriguing pattern to note here was that, while the majority of organizations needed to get on board with the NFT craze, only a few could reap the genuine benefits of something similar.

    Low-coverage altcoins received a lot of attention while the NFT fever was at its peak, but it was only for a short time. However, larger-cap altcoins such as MATIC and Litecoin experienced cost-driven growth. To be honest, it appeared that NFTs were playing a significant role in siphoning certain alts.

    For example, the Litecoin Foundation recently announced the release of OmniLite, a decentralized symbolic creation stage that enables the delivery of decentralized tokens and smart contracts alongside crypto-resources like tokens and NFTs. In response to this current, the price of LTC remained stable in the market even as the market suffocated.

    Furthermore, Origin collaborated with Polygon to provide standard Layer 2 NFTs and information on the equivalent, which aided MATIC’s recovery after the siphon. In reality, MATIC increased by 3% in just 24 hours.

    The daily volume dropped to $56 million.

    Regardless, this NFT enchantment wand did not work for all altcoins. Countless old coins were moved due to Axie Infinity, for example, at the time of publication. Currently, while this may have been an attempt to raise the cost, it went on indefinitely. Despite the fact that Axie is an NFT-based stage, the alt’s value appeared to battle during the NFT blast.

    Regardless of the pouring institutional premium, the larger NFT market has recently seen a pullback. In reality, day-to-day volumes fell to around $56 million on September 12 – a drop of nearly half from the previous day.

    At the time of writing, Alibaba’s Tmall had sold out of mooncake NFTs, while Chinese Internet behemoth Tencent had also entered the world of NFTs by launching an NFT exchanging stage called Huanhe. Finally, keep in mind that NFTs are still illiquid. Their value is determined by the promotion, and as long as that publicity exists, NFTs will have a high value.

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