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Alibaba, TikTok, NetEase Join The Craze, Why China’s NFT Market Has Seen An Explosive Growth

The NFT Craze has been reaching new levels across the world, as many big companies and players jump into the scene. Investment firm Sino Global Capital believes the sector is “growing rapidly”, predominantly in China.

Companies based in the Asian Giant, such as Alibaba, visual content media agency Visual China Group (VSG), NetEase, a major internet technology company, and ByteDance, the parent company of social media platform TikTok, already announced a stake in the NFT market.

This has coincided with an equally amount of participation from western companies, and high net worth individuals. The payment giant VISA recently purchased one of the NFTs that comprised popular collection CryptoPunks. This could lead to another wave of mass adoption, driven a new stage in the NFT Craze.

As Sino Global Capital claimed, there are key events that suggest this possibility. The first is the acquisition of CryptoPunks from founders of major companies, such as Cai Wensheng, founder of Meitu, Feng Bo, founder of Dragonfly Capital, and others.

As Bitcoinist reported, these individuals purchased CryptoPunks #8236 and #7252 for 125 ETH and 1600 ETH, respectively.

In addition, the participation of retail investors into the market. The NFT Craze has been partially driven by small investors looking to flip their asset for a quick gain, and by millennial investors more akin to spend their money in digital assets as a form of luxury goods.

This could see another surge, as platform across the world are trying to leverage the fractionalization of popular NFT collection to drive new users. In China, as Sino Global Capital said, a social network called People’s Punk has been launched with the help of 173 users.

In that way, many people can co-own a CryptoPunk. In the case of People’s Punk it’s number 173 via its fragmented token represented by $DDDD. Surprisingly, the token was adopted by marketplace OpenSea as a payment token.

NFT Collections And The New Initiatives That Could Boost Adoption

Fractionalizes NFTs are worth millions of dollars, at the time of writing, and people are finding new ways to interact with these assets, as seen with the initiative describe above. There are others which could serve to further propelled the NFT Market into its next adoption phase.

As the firm noted, the “CryptoPunk Couple” project, an experiment created to “make Punks into couple”, have been raising a lot of capital from retail investors. In a short time, the project raised over 400 ETH, according to the firm.

Former CEO of BitMEX Arthur Hayes, recently noted in a post that the NFT market could help improve the art industry by reducing transactions costs, cutting down intermediaries, and reaching wider audiences.

In addition, Hayes claimed that people also jump into these assets to gain social status, and access to the “exclusive communities” which can only be access by the NFT owner.

In any case, the NFT revolution seems at its early stage as people still debate if the market is bubble or the future of entertainment, gaming, movies, and other mediums to create and distribute content.

At the time of writing, ETH trades at $3,949 with a 22.2% profit in the weekly chart.

Ethereum ETH ETHUSD
ETH moving sideways in the daily chart after a strong rally. Source: ETHUSD TradingView

Source: Bitcoinist