The Untapped NFT Space on The Binance Smart Chain

The BSCs' NFT space is rapidly developing with over 500,000 BEP-721 tokens, which projects will capitalize on this untapped market share?

By
Mad Dog
on
December 12, 2020
Category:
Project Insight

MadDog_BSC is an investor and community admin at BakerySwap. When not investing in crypto, he loves to fish.

Crypt_oc is an investor, who loves science, sci-fi and crypto.


Why is everyone getting into Non Fungible Tokens (NFT)? A few days ago, PancakeSwap had an AMA with Binance; in it, and today they announced NFT with a twist. BCAEX announced that they are establishing a new NFT standard with Binance Smart Chain. So, what’s all the fuss about NFTs?


What’s going down in BSC town

This is a breakdown of how Binance looks at it.



To be more specific, in the BSC ecosystem there are currently a few players. Below is a summary of a few and their current efforts with help from John Dough:

  • Alpaca City has its own brand and brought its airdropped its Alpacas over

  • BattlePets is the first game native on BSC and utilizes NFTs as part of their games

  • Bounce allows users to sell their NFT items in auctions and might do a bridge very soon

  • JustLiquidity / OBR partnership with the bridge from ERC

  • Lootex is on BSC now through its Forge API for better and more powerful NFT minting

  • Narwhalwap already has an NFT marketplace for their runes and potions

  • Pancakeswap just released their NFTs with a twist

  • SafePal supports NFTs heavily and collaborating with artists for the design

  • Thugs.fi are also looking into their NFT market


Analyzing the token space from BSC scan data as of December 12, there are up to 567,429 BEP 721 tokens created. We sorted the tokens based on the following categories to gain an understanding of the current BSC space. Our categories are:


  • Raffle: NFTs with a strong random component, which may also provide rewards.
  • DeFi: NFTs used for finance to increase rewards
  • Game: NFTs used as part of a game 
  • Art: NFTs that are artistic and creative



A majority of NFT’s currently on the BSC revolve around the raffle component, with around 90% of total tokens; it also needs to be said that the raffle NFTs are for one-time use. Of the raffle tokens, pancake’s use case dominates.



In a distant second, we see the DeFi application of NFTs, with Dego’s use case dominating a majority.



With gaming as a third dominant use case, BattlePet and Alpaca NFTs show up. Alpaca have started minting in dego and have given out 5000 alpaca NFT aidrops and another 4000 in presale. As Alpaca is based on ERC-1155, the total count of NFT was determined from the contract, as it has not shown up as a token on Bscscan yet.

With art as the fourth dominant category, we see a much more diversified group of players. The three dominant are BCAEX, BAKE, and Mathwallet, and then a diversified set of art players.

In summary, the NFT space on the BSC is still budding as multiple players attempt to enter the space. The dominance that the main players have of each of the Raffle, DeFi, and GameFi categories will likely balance into something more sustainable as new entrants move and offer competing NFTs. The overall percentage of the NFT use cases will also need to rebalance to something more sustainable over the long term, with Art and GameFi more a natural fit for the BSC technical advantages over Ethereum.


Playing Nostradamus

Obviously, to the caveat of forward-looking statement disclaimers, it is always fun to think about what could be interesting in the future. In this section, we take a stab.

The first thing that’s interesting is the new standard that BCAEX is proposing on the  BSC. This could be a derivative of ERC 721 and 1155 on the BSC, though that would be a bit simplistic and not take advantage of the features of BSC, with faster transactions at a lower cost. 

One main theory could be interactive NFTs, similar to what Beyond has been doing with its interactive NFTs.

  We also hope to see is further innovation in the space of NFT in a macro sense, with: 

  • Partial ownership of a real asset: imagine a real piece of the next work from Banksy, where people own partial shares of it. If there was ever a sale, the crypto investors would get the returns

  • Derivatives: NFT collateralization. What this means is that I could buy an NFT, collateralize it (lend it), and leverage it to buy other assets

  • Interoperability between all the DeFi platforms: the use of NFTs across different ecosystems. Imagine being able to use potions both in the NAR ecosystem and BattlePets


We also interviewed some of our fellow innovators in the BSC NFT space, and included some of their ideas on what the future will entail:

  • The high TPS support and low transaction fees help us persuade business clients to implement blockchain more possibly - Justine Lu, Lootex

  • Artists may create their own tokens, which allows them to break away from the traditional business model of just simply buying and selling art.  - the_blacksea,

artist

  • We wanted a way to incorporate ERC 721 technology, but we wanted to combine that with artists’ participation as well.  -Nyanswop

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Mad Dog

MadDog_BSC is an investor and community admin at BakerySwap. When not investing in crypto, he loves to fish.

Amal

Crypt_oc is an investor, who loves science, sci-fi and crypto