What’s The Next Money Maker After NFTs?

The Rise Of The Metaverse

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Coinmonks

3 min readOct 4, 2021

People collect art made by the likes of Picasso, Monet and even Banksy. Some people collect baseball cards and physical trinkets. Rare collectables have now become a status symbol, sometimes even veering into the absurd. Enter non-fungible tokens (NFTs), one-of-a-kind and digital-only artworks on a blockchain. These NFTs can only belong to one person because of the use of smart contracts. The NFT marketplace, OpenSea, and NFT game, Axie Infinity, have seen revenues of around $400 million as of August 2021. OpenSea, alone, had a transaction volume of more than $67.8 million and a revenue of more than $5.0 million (see Figure 1).

***Figure 1: Token Terminal OpenSea Transaction And Revenue Data***

According to boomers, this surge in interest and the resulting revenues are because younger generations are consistently showing increasing interest in the metaverse and placing immense value on ownership of digital collectables compared to physical ones. Some people have even suggested that the interest in the metaverse is likely to surpass interest in space exploration. This opinion stirs memories of Ready Player One, a 2011 science fiction novel, and the debut novel of American author Ernest Cline.

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Boys Of Defi Summer

The current NFT boom bears similarities to what happened with decentralised finance (Defi) in the summer of 2020 when the Defi landscape exploded independently from Bitcoin. The speculative froth in the NFT space will eventually spill over to the crypto space, especially Defi. Regardless of recent hack attacks (see Bondly Finance Hack: An Opportunity Or A Signal To Run For The Hills), Defi is here to stay, and the space is growing exponentially (see Figure 2). Like a skin-toughening callous or a vaccine, these hacks can improve Defi smart contracts by highlighting attack vectors and vulnerable code. If Defi continues growing, how can one take advantage of this growth and make strategic investments that could lead to juicy returns medium to long term?

***Figure 2: Chainlink Ecosystem Growth***

Defi Insurance Will Be A Must

With the spate of hack attacks in the Defi space since its inception, cryptocurrency insurance projects are becoming prominent. These insurance projects offer insurance cover against smart contract exploits that could lead to the loss of an investor’s funds.

The above introduces our ‘Crypto Spotlight’ series, where we discuss crypto and Defi trends that could see significant adoption in future. While not financial advice, the ‘Crypto Spotlight’ series seeks to discuss projects that could see 10x to 100x returns if the expected trends emerge.

Read the first part of the series here.

Our Substack Newsletter is entirely FREE of charge. Please head over to the Substack page at cbresearch.substack.com to read more about the projects we will cover, including Armor Finance, Tidal Finance and more.

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What’s The Next Money Maker After NFTs?

The Rise Of The Metaverse

Boys Of Defi Summer

Defi Insurance Will Be A Must

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Written by Kel The Observer