Despite the general downtrend in the crypto market over the last two months, the NFT sector has continued to grow in leaps and bounds. Its astronomical growth might not be unconnected with the rising interest in the metaverse, with NFTs featuring heavily in this emerging sector. However, an analyst (Chris Burniske) has opined that historical data showed that the rising popularity and growth of the NFT industry could negatively impact the BTC market.
The Booming NFT Sector Might Be Terrible For The BTC Market
Many crypto investors are still shocked that BTC now trades at sub-$37k levels. While some chose to exit the market and cut their losses, others remained defiant and tried to figure out the cause of this outrageous decline. Placeholder co-founder, Chris Burniske, shared his opinion regarding the relationship between the NFT and BTC markets.
The crypto advocate opined that the illiquid-ness of the NFTs make them less susceptible to an astronomical rise which would happen just as the market is about to turn bearish. The placeholder co-partner cited the example of LTC, which surged in price after BTC was no longer bullish. He also cited the example of ETH, which surged for 30 days after BTC’s bullishness was over in December 2017.
BTC Will Be Bullish Again – Burniske
Hence, he opines that the current NFT boom signals the end of a BTC bull. If the current trend continues, the leading cryptocurrency would have remained downtrend for the third successive month. Also, the rumors of a possible increase in interest rates to taper inflation won’t be good news for the BTC price action.
Nevertheless, Burniske opines that BTC would still be bullish once it bottoms out of its crucial support levels. However, he added that the market conditions must also be more favorable so investors won’t start selling in panic.
0x’s New Feature Enables Developers To Swap Nfts Across Several Blockchains
0x’s new feature will allow developers to swap their NFTs across several blockchains through the network’s smart contracts when it becomes publicly available. However, 0x’s latest feature isn’t available to users outside the following blockchains – Ethereum, Polygon, Fantom, Binance Smart Chain, Avalanche, and Polygon.
While the feature would first be available for Ethereum blockchain users, the 0x community would vote for the next blockchain on which 0x should launch its new feature. Before launching this new feature, 0x’s main business was to supply tools developers can use to spin up DEXs on the Ethereum blockchain.
Will Warren (one of ox lab’s founders) stated that “we are firm believers that open source codes are necessary for any market to function effectively. That’s why we are fully immersed in this project where users can swap their NFTs across several blockchains seamlessly.”
0x claims that its smart contracts are the best in the industry based on the unique benefits it offers, such as the payment rights for owners of digital collectibles and 55% cheaper transaction charges. Thus, developers can use 0x’s proprietary toolkit to develop an NFT platform compatible with multiple blockchain.