Today, there's $11 billion in crypto assets locked in decentralized finance (defi) protocols. And since 2017, there have been $130 billion in sales of non-fungible tokens (NFT) on exchanges. So when should we expect the worlds of defi and NFT to collide? Many would argue its already happening. Recently, Dapper Labs closed an $18 million token sale on the strength of its latest NFT collectibles game, NBA Top Shot. Dapper Labs is known for its early success of CryptoKitties in 2017, and now the non-fungible token (NFT) maker completed its own high-volume Flow blockchain earlier this year—featuring its FLOW token. Blockade Games co-founder Marguerite deCourcelle said her startup sold over $160,000 of crypto assets, including NFTs, and minted 850,000+ assets to blockchain game players. Marguerite broke onto the NFT scene in 2018 by selling a digital painting that included clues to hidden bitcoin prizes, such as a $50,000 prize for The Legend of Satoshi Nakamoto. There are dozens of crypto-powered collectibles marketplaces offering NFT products and services to track copyrights, level up in games, solve puzzles, gamble, arbitrage, win prizes, compete in head-to-head challenges, collect things, play fantasy sports, track gamily data, engage with friends, or simply enjoy artwork. Some of the larger players are MakersPlace, OpenSea, Rarible, Kogs, Lynx Art Collection, Nifty, Sandbox, Sorare, Superrare,  AxieInfinity, and CryptoPunks. Adding more sophisticated engagement features and yield farming characteristics seems to be the next major step for the industry that might make it go parabolic like defi. Other blockchains similar to Flow are emerging (or already exist) that can be used for NFT minting, mining, trading, and/or challenges, such as TRON, EOSIO, Celo, and Xaya. Platforms will usually need at least 500,000 daily active users to create the liquidity needed to properly engage an NFT community, according to Flipside Crypto.

Cointelegraph (Oct 8, 2020)