Decentralized applications (dApps) like Manifold and Zora, in Ethereum (ETH) has been taking over the narrative when it comes to creating NFT collections. A release model called Open Editions, or open editions, also fell in love with the Web3 community. These news may indicate that a high like 2021 is close.
The reason why decentralized applications designed for creating NFTs What is gaining strength is that platforms like these have semi-ready smart contracts, and in the process of implementation, they hand over all ownership of the asset to the user. In this way, the creator of the NFT can sell, use or advertise on the entire blockchain ecosystem.
In cases where the user creates non-fungible tokens through OpenSea, for example, the smart contract with which he interacts is that of the platform itself. Although linked to the creator’s virtual wallet, ownership is in the hands of the marketplace.
As a result, the user is often unable to advertise his non-fungible token on other marketplaces such as Looksrare or X2Y2.
NFT implementation platforms are a happy medium between the developer programming an entire smart contract to create a non-fungible token and a more centralized platform.
It is no wonder that the growth in the use of these platforms has been noticeable. According to Manifold’s own data, implemented at Dune Analytics, minting volume jumped from US$ 547,504 on November 21, 2021 to US$ 8,630,161 on January 23, 2023, its maximum peak on the chart.
On November 21 of last year, the total number of non-fungible tokens created was 649, while at its all-time high in volume – January 23 – it was 2,380.
The popularization of these platforms was greatly driven by the Open Editions model, or open editions since the end of last year.
These are the creation of NFTs where the creator does not determine a supply limit, or time for interested parties to redeem them.
Both characteristics were key drivers that could result in a massive buy, and an exponential increase in price.
A limited and exclusive collection, with few editions has always been the most beloved narrative on the market to justify the appreciation of its price. In addition, the “sold out”, or stock sold out in a few minutes, also always walked side by side.
From $8 to $1,700 in One Month: Why Do Open Editions Gain So Much Traction?
According to Lugui Tillier from Lumx, this is not the first movement of Open Editions that the NFT market has observed. He says that at the beginning of the 2021 bull market, before the big upward movements, there was an Open Edition that fell to the taste of investors, the XCOPY.
“He is possibly the most renowned artist in web3he has been selling digital art for many years and today he is certainly a reference and has already had art sold for more than 1,600 ethers”, he says.
Tillier also comments that it’s even a rhyme that investors are making about this year. The return of Open Editions could also be a precedent for the 2023 surge.
Recently, the new attraction of Open Editions was also caused by a famous artist in the middle of Web3. Jack Butcher was already a famous artist on Web2, and he launched a project called “checks” on Web3.
“He made an Open Edition with a super affordable price, like all the others he had ever made, but with a burn mechanism [queima]. For three reasons, of course, this collection ended up getting a lot of traction,” he explains.
The first was its name, which was already well positioned in the art and design market. The second was the fact that it fell in love with the “Degens”, the Web3 community that is most immersed in this market.
“These guys, who live on Twitter, embraced “checks” a lot and made it a cultural symbol of Web3 by making derivations, using it as a profile picture, creating art and so on”, he says.
The burn mechanism, which aims to reduce supply, was also one of the factors that boosted the collection from US$ 8 to US$ 1,700 in 25 days.
As Tillier tells it, after this movement several creators started to release their Open Editions with burning mechanism announced later.
The burning system works with the NFT holder destroying his NFT to get a different, or rarer, one.
“Practically, the only one that stayed above the base price was Jack Butcher. For me, it wasn’t the model that worked, but precisely the cultural issue and the engagement traction it managed to create,” he says. “ Which says a lot about the NFT market yet, people don’t necessarily buy it for the art.”
However, that doesn’t mean for Tillier that Open Editions is a bad model. In his opinion, it is a way of financially democratizing access, as well as creating greater accessibility for artists.
“Most people don’t know the difference between an image and an idea”, says Jack Butcher on his Twitter profile.https://twitter.com/jackbutcher/status/1621549292010852355?s=20&t=s_Y3MHIDGGqthD5Ua4H9YA
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
