Bitcoin’s market cap-1 trillion
Ethereum-415 billion
Cardano-71 billion
Binance-69 billion
Tether-68 billion
1.6 trillion in market cap total under five coins.
The global crypto market holds a market cap of 2.3 trillion dollars. 67% of that is just the top 5.
Where this relates to NFT’s is branding.
Bitcoin has more or less the same tech and probably worse tech over a lot of other options on the market.
The brand of it being first though is what gives it a trillion dollar market cap.
The other coins are buying into a brand also.
NFT’s have a problem however.
Buyers just get that one NFT. They don’t buy into a larger pool or brand, but just get one.
This makes it so there’s a printing pool of literal billions of NFT’s and no actual core brand to buy into.
And obviously artist and creators exist, but let’s just compare that with existing artist in film for a moment.
Say Pokémon made an NFT, which so far Nintendo/the Pokémon Company seem resistant in getting involved in that, but let’s say they did.
Would a Charizard NFT sell for the same as a Magickarp NFT?
Probably not.
So even in larger artist or corporate brands, while they have the same creator, they aren’t the same product.
This is different over crypto, where buying a coin gets the same product every single time.
And this is where NFT’s will be doomed to fail long term.
Crypto is valuable, because frat house redditors get people to pump up on crypto early and hope idiots buy into it.
But they pick one crypto.
NFT’s struggle, because there’s no core brand to pump and people can just constantly produce more.
In theory, a group can pump an artist, but they’ll be in a pump, where some get Charizards and others get Magikarp’s, in which value has no promise on holding across the board.
I bash crypto a lot, but for NFT’s, this stuff makes that look like Berkshire Hathaway.