3 NFT stocks with high growth potential
The market for non-fungible tokens – digital assets such as artwork, music videos, or music that the property has identified in the blockchain – emerged in 2021, despite some ups and downs. Three months ago, NFT’s monthly sales volume was $ 59.2 million. Today, that number has reached $ 2.6 billion, according to trading site NonFungible.
Like dollars and cryptocurrencies such as Ethereum flocking to NFTs, companies are trying to figure out how to capitalize. Sports leagues and players are dropping (or creating) NFTs and artists and performers are getting into the action. So how can investors gamble in the market without betting on unique NFTs themselves? DraftKings (NASDAQ: DKNG), Cloudflare (NYSE: NET), and eBay (NASDAQ: EBAY) are great places to start.
DraftKings has launched an NFT Marketplace, primarily for athlete-related NFTs. The company has grown into a leading name in sports betting, so the transition to NFT could be a natural fit.
Sports cards have long been a way to buy sports-related collectibles, and DraftKings seem to view NFTs in the same way. Current NFT drops are a lot like sports cards with a bit more exclusivity and easier trading. And if young collectors go into buying NFTs rather than cards, this could be a great move for DraftKings as they sell NFTs from athletes like Tom Brady, Wayne Gretzky, etc.
DraftKings’ system will run on Ethereum Layer 2, which is a scaling solution to handle the increased transition load on the Ethereum network, and by the end of the year the company expects it to be. that its NFTs are transferable to external digital wallets. If sports NFTs take off, DraftKings could be a winner in the market.
Cloudflare, a cloud service provider that secures and improves internet performance, is an infrastructure game in NFTs. The company’s Cloudflare Stream allows video creators to link content to NFTs, saying it allows “creators to embed their NFT ownership claim into their video on Cloudflare Stream.” The idea is to limit access to a video to those who have a TVN.
What I love about Cloudflare is that it looks for ways to make NFTs a useful digital asset. There are a myriad of potential uses for NFTs beyond just selling JPEGs, so if companies start drafting contracts with NFTs or tying ownership of physical assets to NFTs, this could be a big deal. . Videos could be a step in the door to more NFT assets and structures.
Cloudflare is a great way to invest in the growing infrastructure needs of NFTs. Given the company’s history of innovating at the cloud edge, this could be a big winner in the long run.
One of the first Internet marketplaces, eBay, is also attacking NFTs. The company is allowing some NFTs to be sold on its traditional online platform, but that may be just the start if it opens up to cryptocurrencies and other digital assets.
EBay takes a slightly different approach to the NFTs of some of its rivals. The company is still focused on dollar sales for now, rather than relying on cryptocurrency, which is used in most NFT transactions on OpenSea. Acceptance of standard currency could make an eBay NFT more accessible to the masses than a cryptocurrency-focused NFT platform.
A historic business like eBay might not be a great place for disruptive NFT sales to start with, but as we see the cryptocurrency market going through wild volatility, it may be necessary to have some sort of strength. stabilizer. eBay could be a natural and very liquid buyer, especially if the crypto and NFT market is going through a great panic.
NFTs are here to stay
I don’t think it’s going to be an easy journey for investors, but NFTs are probably here to stay. Digital products have been gaining popularity for years and I believe this will only continue as the use of digital platforms for communication and productivity increases. Not all businesses will win in an NFT world, but DraftKings, Cloudflare, and eBay have a good chance of creating a niche in the NFT market.
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