ChainSwap to launch NFT cross-chain functionality
Over the past few months, the NFT market has continued to heat up, with NFT projects like CryptoPunks #2140 and #5217 fetching sky-high prices of 1600 ETH and 2200 ETH respectively. As the NFT market explodes and the prices skyrocket, NFT fragmentation has emerged as the new way to explore this space.
Previously, path.eth@Cryptopathic created Feisty Doge’s NFT token — NFD, a fragmented NFT based on the dogecoin headshot, which rose as high as $0.001 to become the most expensive NFT in the industry on the day of its release.
What is NFT fragmentation?
In general, an NFT is converted into an ERC-20 token so that users trading a particular NFT can trade the converted ERC-20 on a DEX. This conversion of NFTs to ERC-20s is commonly referred to in the industry as fragmentation.
Fragmentation allows you to break an NFT into a bunch of pieces — usually in ERC20 Tokens — and then use it in DeFi. Fragmentation means that we can create liquidity in NFTs by pricing them efficiently. In terms of how NFT fragmentation works, it lowers the barrier for investors to enter the NFT space, which also increases the liquidity of NFTs.
To cater to the red-hot NFT market’s demands for cross-chain, ChainSwap decided to launch cross-chain functionality. On one hand, this feature facilitates the promotion of NFT fragmentation and strengthens the liquidity of NFTs. On the other hand, it facilitates the privatization of NFT: through the NFT cross-chain feature, investors can collect the fragments of NFT they want to buy at a lower gas fee on the other chain.
We believe this is of great significance and value for the two-way promotion of NFT fragmentation and privatization, and we will be launching the NFT cross-chain feature for community soon in the future. Stay tuned!