Scope of NFTs in DeFi

With decentralized finance and nonfungible tokens seeing a meteoric rise, it’s easy to believe crypto apps are finally breaking through. But is there actually real user growth, or is it just the same influencers moving from one hyped market to the next? We sought to answer this puzzle and identify what it means for the future of innovation. So, let’s take a closer look at the growth of DeFi and NFTs.

Using NFTs in Decentralized Finance

The NFT decentralized finance combination becomes instantly feasible, especially with the capability of NFTs to represent the commercialization of digital products and services. NFTs have become one of the promising applications in the DeFi sector. For example, Ethereum has introduced ERC-20 tokens for offering representation for digital assets. So, NFTs could easily serve as proof of ownership rights for digital art. Ethereum has become one of the top choices for creators to share art and interact with an engaged community of collectors. With the flexibility for proving ownership, NFTs could serve exceptional value advantages in the domain of DeFi. Let us take a look at the different possible ways for NFT use in DeFi.

Related: Automated market makers are dead

Products combining DeFi and NFTs will be the winners

NFTs and DeFi appear destined to collide. Axie Infinity is an exemplary case study. Possibly the biggest revenue-generating blockchain product, Axie combines a play-to-earn game based on scarce NFTs with liquidity pools for in-game items — a true NFT-DeFi hybrid.

DeFi, Crypto banking, White label cryptocurrency exchange development, Crypto wallet development, coin development, fintech, Blockchain