The rise of NFTs (non-fungible tokens) caught many in the market by complete surprise. These tokens differ from cryptocurrencies like Bitcoin or Ethereum in that each token can represent a different asset. As such, each NFT has its own value based on its scarcity and other vital statistics.
The first mention of the NFT concept came about in 2015 but it wasn’t until 2017 that the idea took flight. The launch of the Ethereum-based NFT collectors game Cryptokitties changed the game forever. The game was a huge success. It was so popular that it caused record congestion on the Ethereum blockchain.
The success of Cryptokitties led to a flood of new NFTs entering the market. Today, there is a huge selection of networks that provide NFT capabilities to users. Here are the top NFT blockchains to keep your eyes on in 2022.
Ethereum is in the midst of its largest upgrade to date. The update will convert the entire system from a legacy Proof-of-Work (PoW) network to a fourth-gen Proof-of-Stake (PoS) system. Ethereum remains the most popular DeFi and NFT network in the world. The protocol was able to gain this notoriety due to its pioneering efforts.
For example, the ERC-721 NFT token standard made it simple for developers to launch their own NFTs. Additionally, the Ethereum community is filled with innovative developers and creative minds. Many of the top-performing NFTs in the world live on the Ethereum blockchain. For example, Axie Unlimited, Cyberpunks, and Cryptokitties are all in the top ten in terms of market cap.
The Binance Smart Chain
While Ethereum made it easy for users to launch NFTs, the Binance Smart Chain took aim at other issues faced by Ethereum users. The BSC provides advanced options and flexibility to the NFT market. Users can create complex NFTs, stablecoins, and DeFi tokens. To create these digital assets users must pay a small fee in BNB.
The Binance Smart Chain was built to work alongside the Binance Chain. It is the latest network put forth by one of the largest exchanges in the world. As such, the BSC has incredible technical and financial support. This support has helped BSC markets like PancakeSwap to experience record growth.
Ethereum’s congestion issues led some of its more profitable platforms to seek out alternatives. The team behind Cryptokitties in particular learned from the congestion issues they experienced in 2017. This time around, they were not going to fall victim to the same issues. To ensure their latest platform, NBA Top Shot, remained responsive the developers created a purpose-built blockchain called Flow.
Dapper Labs partnered with the NBA on the market and collectors platform. Users can buy licensed digital highlights with verifiable scarcity using the system. The protocol has seen considerable success and is recognized as a top-performing NFT collectibles market. Notably, NBA Top Shot Collectors have shelled out some impressive rates for their favorite memorabilia. In one instance, a collector paid a record-breaking $230,000 for a clip of LeBron James dunking.
Another advanced blockchain making a name in the NFT market is Avalanche. Avalanche is unique in that it relies on a multi-layered approach. The system has three separate blockchains that all handle different tasks. Through this technical structure, the network is able to provide developer flexibility, high usability, scalability, and enterprise-grade security.
Avalanche has seen considerable adoptions since its launch due to its low fee structure. It’s much cheaper to mint an NFT on Avalanche versus Ethereum. Additionally, it cost less to send these tokens or to execute smart contracts. For comparison, Ethereum handles around 13 transactions per second (tps). Avalanche has been clocked at 6,5000 tps.
Efinity is a gaming NFT blockchain in the works. This network is being built from the ground up to empower NFT gaming. The network was created by the development team behind the popular blockchain, Polkadot. The developers integrated substrate development support from Parity Technologies alongside Enjin protocols.
Enjin NFT gaming is far ahead of early NFT games like Cryptokitties. Enjin seeks to create advanced AAA games that leverage NFTs. As such, the network is a pioneer in the play-to-earn gaming sector. These games unlock users’ efforts by enabling them to trade and sell their digital assets for other cryptocurrencies on an open market.
NFTs – Still a Hot Topic in the Market
The NFT craze appears to be just getting started. Developers continue to think of new ways to use this technology to benefit. As such, you can expect to see more NFT integration in the gaming and art sectors moving forward. Notably, the META blockchain has advanced NFT capabilities. However, the development team behind the project hasn’t released any information regarding these features to the public yet. In the near future, this data could place a new contender in the NFT market.