📈Potential of NFT market

Since 2021, the NFT market has undergone significant development, and the number of active users, NFT projects, and daily trading volume are all anticipated to be on a long-term, robust upward trend. There are many parallels between the NFT boom and the DeFi summer of 2020, as they are both new asset classes with enormous development potential.

However, it has been over two years since the DeFi summer, and many DeFi infrastructures have already been developed, including DeFi insurance, KYC, the option market, loans, staking, and farming, among others. Many of them were derived from conventional finance, and excellent developers combined them with cryptocurrencies to attract more people to the DeFi industry. NFT will be the next fascinating development, as many celebrities and artists have recently joined, bringing their followers into the cryptocurrency world.

However, NFT is still in its infancy, and many NFT infrastructures have yet to be constructed, leaving a vast amount of undeveloped land. For example, the most common strategy employed by NFT investors is to acquire and hold. This prevented many individuals from entering the NFT market, as many blue chip NFTs are extremely expensive and comparable in price to suburban homes. People attempted to tokenize the NFT so that more people could participate by lowering the bar. This is a significant development, but just as DeFi combined traditional finance with cryptocurrencies, we can take a different approach by introducing more traditional finance concepts into the NFT space.

The ability to use the NFT prediction market with a modest amount of capital and to "short" the NFT market would attract more people to the NFT world if index futures trading were included. Therefore, it will increase the overall liquidity of the NFT market, as there are now more ways to profit from investing in NFTs. One can also use the NFT prediction market for hedging in order to reduce the risk associated with holding NFT, as NFT remains a relatively high-risk investment. Additionally, it will increase arbitrage opportunities and attract more investors overall.

In addition to the NFT prediction pool, the demand for decentralised market indexes for AI, memes, and Hong Kong tokens would increase over time. At that juncture, the order book system would be preferable to the prediction pool's alpha version.