Non-fungible tokens (NFTs) have found use cases in various industries such as music, gambling, and sports. The growing adoption of NFTs and the appreciation of particular collectibles, such as Crypto Punks, has attracted an influx of private investors.
“Year-to-date, the NFT/Gaming vertical within the crypto sector has received the third highest number of private funding rounds, receiving nearly $5.0 billion in VC funding across 406 deals. . The average deal size for the vertical was $14.9 million and the median deal size was equivalent to $2.7 million.
NFTX aspires to add liquidity to NFTs, converting them into a fungible ERC20 token offering liquidity and staking incentives to users.
However, NFTX’s price behavior has been bearish since hitting an all-time high of $486.83 in February 2021, according to CoinMarketCap. At the time of writing (February 23), the NFTX token was trading at $81.16, down more than 83% from the high. Additionally, it fell to a 90-day low of $59.7 on January 24, 2022.
What’s next for the NFTX token? Will it fall further or rebound amid the growth of the NTF market?
“Total monthly NFT market volume increased 133x from $17.9 million in January 2021 to $2.0 billion in November,” The Block said.
Let’s study the fundamentals and latest developments of the NFTX project to get a better idea of an NFTX crypto price prediction.
What is NFTX Cryptography?
NFTX is a platform that aims to increase the liquidity of non-fungible tokens (NFTs). Users deposit their NFTs into an NFTX vault to create liquidity. Anyone can set up a vault on Ethereum for any NFT asset to issue a fungible ERC20 token called a vToken.
The vToken represents a claim on any selected asset in the vault and can be used to redeem a particular NFT from the vault. NFTX’s goal is to become the leading issuer of NFT vault tokens, allowing anyone to trade and engage in NFT markets without requiring the underlying technical expertise.
NFTX is developed by a Decentralized Autonomous Organization (DAO), a collection of community members, contributors, and core members working closely together to create the leading NFT liquidity center.
In essence, NFTs do not generate returns. However, when used to create vTokens, they provide access to decentralized finance (DeFi) functionality. They allow collectors to earn protocol fees, earn trading fees as a liquidity provider, and farm with stablecoins using vTokens as loan collateral.
Investors, arbitrageurs and NFT liquidity providers are the three main target audiences of NFTX. Investors might be interested in buying or selling NFTs at floor price without waiting for a secondary market buyer. Arbitrators could benefit from differential pricing between NFT vault tokens and the floor prices of their underlying collateral in secondary markets. NFT liquidity providers can benefit by providing more liquidity and inventory to one or more NFT vaults.
NFTX Coin News and Price Drivers
The project has seen a number of important milestones and developments lately, which may drive the price of the NFTX token.
Launch of inventory staking on NFTX
NFTX launched the Inventory Staking feature in January 2022, allowing NFT inventory to be stored in NFTX vaults to generate revenue without the usual risks associated with providing liquidity.
Inventory staking was introduced in the NFTX V2 protocol, allowing users to deposit their floor-priced NFTs into a vault and stake their position to earn a portion of the vault fee, enabling passive income. In an NFT market, the floor price is the lowest for any NFT in a certain category.
Launch of the NFTX pool on Rari Capital
The NFTX pool became available on Rari Capital’s Fuse Pool in October 2021, enabling the borrowing and lending of NFT assets. Rari Capital is a protocol that enables the lending and borrowing of crypto-assets through independent interest rate pools.
Since each pool will be separate, pool owners can tailor their pools to their own risk tolerances without jeopardizing or compromising the safety of other pools.
The original pool was created and managed by issuing CryptoPunks (PUNK) vault tokens. NFTX intends to gradually increase the NFTX Vault token pool as interest in the NFT lending and borrowing markets increases.
Launch of the decentralized NFT marketplace
In September 2021, NFTX launched a decentralized NFT Marketplace with significant enhancements including bulk buying and selling and a faster checkout process that improved the overall end-user experience of buying, selling and profit yield.
Additionally, NFTX planned to incorporate new features such as multi-chain Ethereum Virtual Machine (EVM) support to attract multiple NFT ecosystems to NFTX, metadata filtering to improve the findability of collections, unilateral staking to expand vault inventory and a creator launch pad as an enhanced alternative to conventional storefront contract standards.
Launch of the Axie Infinity index fund
NFTX introduced the Axie Infinity index fund in March 2021. NFTX is a platform for creating NFT-backed ERC20 tokens, called funds, which are fungible and composable.
Axie Infinity is a blockchain-based game where users acquire unique creature NFTs.
Users can create their own index fund tokens and act as a liquidity provider on an automated market maker like SushiSwap. Becoming a liquidity provider is a simple process. It requires the user to lock their funds token with a second currency in an exchange’s liquidity pool. Then users can become liquidity providers and earn interest on their security deposits.
NFTX/USD Price Analysis
Since its inception, NFTX has generated an ROI of 343%, according to CoinMarketCap as of February 24.
Based on the first available price data of 2021, NFTX fell from $29.02 on January 6 to an all-time low of $18.16 on January 8. After hitting the low, NFTX turned bullish and reached an all-time high of $486.83 on Feb 15, an increase of 2,580% in less than two months.
After the rally, the price fell to $179.31 on March 24. It hit $35.16 again on June 22, a massive drop of nearly 90% from the peak. The mood turned bullish again and the NFTX token reached $252.78 on August 7th. However, the rally did not hold and the value of the NFTX coin fell to $64.08 on December 13. It closed the year up slightly at $86.46.
At the start of 2022, the market sentiment for the NFTX token was bullish. It reached a high of $174 on January 5. However, it fell to a 30-day low of $65.62 on January 24.
At the time of writing (February 24), the NFTX price chart showed the token trading at $80.53 with a market cap of $31 million.
NFTX Coin Price Prediction: Targets for 2022, 2025 and 2030
According to CoinCodex technical analysis, the short-term sentiment for the coin was bearish, with 23 indicators showing bearish and five bullish signals, as of February 24, 2022.
All daily and weekly simple moving averages (SMA), exponential moving averages (EMA) and volume-weighted moving averages (VWMA) gave sell signals.
The Hull Moving Average (HMA), Rapid Stochastic, Relative Strength Index (RSI) and Williams Percent Range gave buy signals. Meanwhile, the Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) were neutral.
CoinCodex’s NFTX crypto price prediction suggested that the price could drop 33.52% to $51.25 by March 1, 2022.
Meanwhile, the algorithm-based forecasters shared NFTX long-term blended future price predictions as of February 24:
According to Wallet Investor, the average price of the coin could drop to $61.36 by the end of 2022 and drop to $8.28 by 2025. Additionally, the five-year estimate for NFTX/USD indicated that it could fall further to 4.96 in February 2027.
Digital Coin’s NFTX forecast suggests that the average price in 2022 could be $102.64, rising to $128.71 in 2023, $166.58 in 2025, and $363.18 in 2030.
Similarly, Price Prediction estimated that the average price of NFTX could reach $133.41 in 2022, $393.61 in 2025, and reach $2,427.84 in 2030.
When looking for an NFTX price prediction, keep in mind that analysts’ and algorithms’ predictions can be wrong. These projections are based on fundamental and technical studies of the past performance of the NFTX token. Past performance is not indicative of future results.
It is essential to do your own research and always remember that your decision to trade depends on your attitude towards risk, your market expertise, the allocation of your investment portfolio and your ease with losing money. money. You should never invest money that you cannot afford to lose.