Popular cryptocurrency influencer and analyst Tyler Swope has revealed he believes a little-known, highly misunderstood altcoin is set to explode higher in the near future as the market starts to understand its true potential.
In a video, Swope told his nearly 200,000 YouTube subscribers he is keeping an eye on the NFT20 marketplace and its MUSE governance token, claiming it’s the Uniswap (UNI) of non-fungible tokens, implying it’s the go-to decentralized marketplace for them.
As Daily Hodl reports, NFT20 has, according to the influencer, “shipped the products” but the market has failed to fully understand what the marketplace is, similar to how the market misunderstood Uniswap’s potential on the platform’s early days. Uniswap, Swope said, could be an “NFT storefront hiding in plain sight,” but it would need some work to get there.
NFT20 did that work and is now a permissionless protocol that lets users trade, swap, and sell their NFTs. It lets users create pools of tokenized NFTs and auctions a bid to increase their liquidity and earn interest on their tokens. The project, Swope says, has the potential to allow capital to flow into the NFT space.
- They are a decentralized exchange and protocol for tokenizing NFT projects as ERC20 tokens to make them tradeable on DEXs such as Uniswap or Sushiswap. By creating a secondary market of ERC20 derivatives of NFTs, NFT20 hopes to address the liquidity problem in the NFT space.
Swope added that while the volume in NFT20 as a decentralized exchange is still low, he believes it may follow in Uniswap’s footsteps, which was low in the first few and then exploded. Per his words, this will happen as “lower value NFTs will be deposited to these pools, as people will just want to get some monetary value for some of the more ‘worthless NFTs’ they hodl.”
This, he says, will create an average price per NFT due to arbitrage between different markets. Traders taking advantage of arbitrage opportunities will then create liquidity and average market prices.
Non-fungible tokens, it’s worth noting, are unique thanks to data in their smart contracts. An NFT cannot be replicated, nor can two users hold the same NFT. Uniswap data shows MUSE is currently trading at $75 after moving up nearly 44% in the last 24 hours.
Featured image via Pixabay.
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