The development of Ethereum NFT and Bitcoin NFT

Source: Daoshuo Blockchain

1. About Ethereum NFT and Bitcoin NFT

Now the avatar NFTs in the Ethereum ecosystem are quite sluggish. Even the former head project Boring Ape has fallen below 12 ETH, not to mention other NFTs (including Goblin).

The only bright project is Pudgy Penguins, whose floor price exceeds 12 ETH, surpassing Boring Ape. The reason why it can stand out from the crowd is probably mainly because it has boosted its popularity again by promoting off-chain business strategies for some time.

However, whether this off-chain business strategy can continue to feed back and promote new things on the chain such as NFT will take a period of observation and testing, and I am more cautious about this.

Because this strategy follows the old path of traditional IP. I always think that new things still need new marketing methods and strategies to have new breakthroughs.

In general, if Ethereum’s avatar NFTs cannot find a new way out and play, the overall sluggish trend will probably continue. Even if they can catch the next wave of bull market in the future and rise again, it will only be a flash in the pan.

In comparison, the NFTs in the Bitcoin ecosystem have been much more lively recently.

Various NFTs related to runes have been rising sharply recently. Especially Runestone, after the founder said that there would be three more airdrops in the future, it stimulated an accelerated influx of buying, making its market value exceed that of Bored Ape.

In addition, Bitcoin Puppets recently also briefly surpassed the node monkey, which had been dominating the list, under the influence of emotions.

These two phenomena show that the NFTs in the Bitcoin ecosystem are still in their early stages, and their price surges are more driven by short-term emotions. They lack the precipitation of value and consensus, and are far from being beaten by the bear market like the NFTs in the Ethereum ecosystem. It is very likely that the rankings of these NFTs will change in the next bull market.

However, in the long run, a more noteworthy concern is that most of these NFTs in the Bitcoin ecosystem are similar to Ethereum's avatar NFTs or meme coins. The emotional value is only temporary. If they cannot find a way to sustainable development, their final fate is not optimistic.

2. What do you think of Merlin's TVL? Is the risk very high?

Not only Merlin, but for almost all pledge projects, once the TVL reaches a certain threshold, the risk must be getting higher and higher. Now almost all projects in the Ethereum DeFi ecosystem have gone through countless hacker tests and market baptisms to get to where they are today.

Merlin will also encounter these problems and challenges. In addition, Merlin's way of preserving assets is a very traditional multi-signature wallet. Therefore, whether the assets pledged in Merlin are safe depends entirely on the management of the project party.

If managed well, the risk is controllable; but if managed poorly, the risk is hard to say.

I also participated in its asset pledge. As participants, it is difficult for us to judge the management level of the project party. We can only start from ourselves and control the risks ourselves. This is what I have always emphasized: do not mortgage large assets, only mortgage assets that you can afford to lose.

3. How about the TAO project?

I am not sure whether the TAO referred to here is Bittensor? If so, I have shared this project in the previous series of articles sharing AI.

It targets a very niche field. It is an innovation in application scenarios and makes sense in the implementation method. More importantly, it does not deliberately use some scenes that seem grand but cannot be carefully tasted to render the project like many other projects. So although this project itself has many aspects that are worth pondering and testing, I still think it is worth continuing to observe and have certain expectations for it.