In the past week total trading volume for digital assets has surpassed three million dollars in value, setting a new trading record. More than one thousand ETH changed hands according to data from trading platform Opensea. This volume is carried by non-fungible tokens from crypto insurance platform yInsure and asset tokenization platform Rarible.
The biggest chunk of the total trading volume in digital assets comes from the top five. Together these five projects are good for almost 80 percent of the total trading value.
With 4099 ETH in trading volume the crypto insurances from yInsure are by far the biggest player in the field. However, Rarible is not far behind with 3785 ETH. We’re talking about 1.5 and 1.4 million dollars in trading volume here. Digital collectible project Cryptopunks follows with 809 ETH, fantasy football game Sorare with 498 ETH, and art platform Superrare completes the top five with 269 ETH.
Non-fungible tokens are slowly becoming more than just digital artworks and game assets. These user-owned digital assets are becoming licenses and insurances. Thanks to the functionalities of smart contracts, many physical contracts can be moved onto the blockchain. Expect more developments in this space, like for example real state ownership with RealT.
Governance and gamification
The rise of decentralized finance and its mechanics has given space to several new developments in the blockchain space. On Rarible there’s lots of demand for the RARI governance token. This token is being obtained by all sellers and buyers on the platform. Often a one hundred dollar buy will earn the buyer a tens of dollars in RARI. Ultimately Rarible wants to give the owners of the token governance of the platform, which suggests that investment companies will ultimately try to buy out RARI holders at a premium.
At the same time decentralized finance is bringing lots of risk for investors. Over the past few weeks we’ve seen YAM fail, while the chef exit scammed on SushiSwap. Ultimately the Sushi chef came back with some apologies and the money, but he had already done harm. Currently there’s a tremendous amount of decentralized finance projects – often food inspired. Some catch on and are serious creations, while others are just there to pump and dump. Anyway, yInsure is an insurance service that should make it a bit safer to walk through the valley of DeFi. Obviously not every platform is supported, so keep that in mind when putting your money anywhere. These insurances are non-fungible tokens or NFTs, held by the owner in their cryptocurrency wallet.