Can NFT become the successor of Decentralized Finance?

As the heat of DeFi gradually cools down, the cryptocurrency world begins to seek new focal points. Recently, the non-fungible token (NFT) seems to have become a new hot topic.

Data shows that as of the end of October, the total trading volume of the NFT market has reached 133 million USD, with over 4.96 million NFTs sold at an average price of 26.9 USD. These figures have shown a significant upward trend recently, contrasting with the declining popularity of Decentralized Finance.

NFT is a unique type of crypto asset, where each token has uniqueness and non-fungibility. They cannot be divided or exchanged like Bitcoin. It is precisely because of this uniqueness that NFTs better reflect the characteristics of private property.

This year, an NFT project called "MEME" unexpectedly became popular, generating over $1.2 million in trading volume within 24 hours. Originally intended to satirize "get-rich-quick DeFi projects", this project instead brought enormous attention to NFTs. Subsequently, various NFT artworks and collectibles began to emerge.

However, compared to DeFi, NFTs still exist as a niche. The number of active users on leading NFT platforms is less than one-tenth of that on leading DeFi platforms. The market size of NFTs is also only about 2% of that of DeFi. Therefore, whether NFTs can take over from DeFi remains questionable.

NFT is not a new concept. The CryptoKitties game in 2017 was the first application of NFTs, but it did not maintain its popularity at that time. This year's enthusiasm for NFTs is largely driven by high yield expectations, but considering aspects such as application scope, user base, and market size, it is still too early for NFTs to become mainstream.

However, the application fields of NFT are gradually expanding. In addition to games, collectibles, and artworks, new scenarios such as intellectual property, digital rights confirmation, and identity authentication are also being explored. This demonstrates the potential of NFT, but it still requires time to develop and validate.

Currently, the NFT market still has a speculative atmosphere. Excessive hype may create a bubble, which is detrimental to the long-term development of the industry. NFTs need enthusiasm, but they require a calm market environment and technological accumulation even more. Innovation is certainly important, but it should not come at the expense of rationality.

Overall, it is still too early for NFTs to become the successors of Decentralized Finance. Its development prospects are broad, but there is still a long way to go. How NFTs will evolve in the future remains to be seen.