The NFT Gold Rush Continues
When Beeple’s Everydays: the First 5000 Days sold in March for $69 million, doubters might have called that moment “peak NFT.” How could a JPEG sell for such an absurd amount of money?
Yet the gold rush has continued unabated. Last week, the average CryptoPunk sale exceeded $500,000 for the first time — not bad for a project that you could have bought for $50 at one point. And that $200 CryptoKitty my partner and I bought on a whim in 2017 would have netted us several thousand dollars today — if we kept our wallet password in a more memorable place.
The mania will eventually slow: the number of new NFTs is potentially infinite, while the dollars used to buy them are not (CryptoPunk prices have already dropped 8% over the weekend). But until the bottom completely falls out of the market, there’s nothing stopping investors from speculating on digital collectibles in hopes of short-term profits.
Terra to the Moon?
When cryptocurrencies fell during the flash crash last week, I urged investors to rebalance their portfolio (i.e., buy the dip). The sudden fall in Bitcoin (CCC:BTC-USD) prices made some higher-quality coins look like bargain bin must-haves.
Since then, my pick Terra (CCC:LUNA-USD) has returned 26%, outperforming Bitcoin’s -3% decline by a wide margin. Investors who rebalanced their “next-Cardano” (CCC:ADA-USD) portfolio on my recommendation would have escaped the worst of the selloff.
Of course, investors need to remember that no cryptocurrency has any “intrinsic value.” Much like NFTs or the size of Wall Street bonuses, crypto prices are only based on the maximum figure that all stakeholders are willing to accept. Swedish central bank governor Stefan Ingves had a point when he compared Bitcoin to trading in stamps.
The DeFi Revolution
Yet a certain class of cryptocurrencies — Decentralized Finance (DeFi) tokens — is becoming more important than ever. These coins grease the wheels of crypto finance, allowing investors to trade in liquidity pools that lower transaction fees.
As investors increasingly rely on decentralized finance, here are five coins to know.
- Binance Coin (CCC:BNB-USD). Launched in 2017, BNB has become the largest DeFi-like token for good reason: it’s cheap to use. Buying $200 of SafeMoon on the BNB network costs $1.73 in transaction fees, while doing the same with Shiba Inu on the Ethereum network will run you $21.16. Though technically not a DeFi token, BNB acts enough like one to make it a top DeFi choice.
- Pancakeswap (CCC:CAKE-USD). The world’s largest DeFi platform by number of users has a lot going for it — a large developer base, low fees, simple setup and strong security. Investors can also “farm” cryptocurrencies using Pancakeswap, earning up to 300% APR on thinly traded coins.
- Uniswap (CCC:UNI-USD). Ethereum’s (CCC:ETH-USD) competitor to PancakeSwap has likewise…
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