27/09/2021 3 NFT Stocks With High Growth Potential

The non-fungible token market is booming and these companies could play a role in its future.

Travis Hoium

Key Points

  • DraftKings is trying to get into the sports figure NFT market.
  • Cloudflare is providing NFT infrastructure.
  • EBay is now allowing NFT sales on its enormous online marketplace.

The market for non-fungible tokens -- digital assets like art, video clips, or music that ownership identified in the blockchain -- came to life in 2021, despite some ups and downs. Three months ago, monthly sales volume of NFTs was checking in at $59.2 million. Today, that number has reached $2.6 billion, according to trading site NonFungible.


As dollars and cryptocurrencies such asEthereumflow into NFTs, companies are trying to figure out how to capitalize. Sports leagues and players are dropping (or creating)NFTs and artists and performers are getting in on the action. So, how can investors play in the market without betting on single NFTs themselves?DraftKings(NASDAQ:DKNG),Cloudflare(NYSE:NET), andeBay(NASDAQ:EBAY)are great places to start.

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A circular icon with the words "NFT non-fungible token" on a circuit.

Image source: Getty Images.

DraftKings

DraftKingshaslaunched an NFT marketplace, primarily for athlete-related NFTs. The company has become a top name in sports gambling, so transitioning to NFTs could be a natural fit.

Sports cards have long been a way to buy sports-related collectibles and DraftKings seems to be viewing NFTs in the same way. Current NFT drops look a lot like sports cards with a little more exclusivity and greater ease of trading. And if young collectors are getting into buying NFTs rather than cards, this could be a great move for DraftKings because it's selling NFTs from athletes like Tom Brady, Wayne Gretzky, and more.

DraftKings' system will run on Ethereum Layer 2, which is a scaling solution to handle the increased transition load on the Ethereum network,and by the end of the year the company expects its NFTs to be transferrable to external digital wallets. If sports NFTs take off, DraftKings could be a winner in the market.

Cloudflare

Cloudflare, a cloud services provider that secures and enhances the performance of the internet,is an infrastructure play in NFTs. The company's Cloudflare Stream allows video creators to tie content to NFTs, saying it allows "creators to embed their NFT claim to ownership into their video on Cloudflare Stream." The idea is to limit access to a video to those who hold an NFT.

What I like about Cloudflare is that it's looking for ways to make NFTs a useful digital asset. There are myriad potential uses for NFTs beyond just selling JPEGs, so if companies start writing contracts with NFTs or tie physical asset ownership to NFTs this could be a big market. Videos could be a foot in the door to more assets and NFT structures.

Cloudflare is a great way to invest in NFTs' growing infrastructure needs. Given the company's history of innovation on the edge of the cloud, this could be a big winner long-term.

EBay

One of the original internet marketplaces, eBay, is also taking its crack at NFTs. The company allows the sale of some NFTs on its traditional online platform but that may just be the start if it opens up to cryptocurrencies and other digital assets.

EBay is taking a bit of a different approach to NFTs from some of its rivals. The company is still focused on dollar sales right now, rather than relyng on a cryptocurrency, which is used in most NFT transactions on OpenSea. Accepting standard currency could make an eBay NFT more accessible to the masses than a cryptocurrency-focused NFT platform.

A legacy company like eBay may not be an ideal place for disruptive NFT sales off the bat, but as we see the cryptocurrency market go through wild volatility there may be a a need for some kind of stabilizing force. EBay could be a natural buyer, and a highly liquid one, especially if the crypto and NFT market goes through a big panic.

NFTs are here to stay

I don't think the ride for investors will be easy, but NFTs probably are here to stay. Digital goods have been growing in popularity for years and I think that will only continue as the use of digital platforms for communication and productivity increases. Not every company will win in a world of NFTs, but DraftKings, Cloudflare, and eBay have a good shot at building a niche in the NFT market.

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Arts

https://www.fool.com/investing/2021/09/25/3-nft-stocks-with-high-growth-potential/

Interesting NFTs
Discord Assembly
Discord logo factory. 3D animation, 10-second loop, 30 fps. Created using Cinema4D, X-Particles, Octane, and After Effects. Originally posted on TikTok (@jigpx) on 2/20/21. 47.5m+ views, 3.2m+ likes (as of 4/22/21).
Furball
Hey cutie! I'm Furball. I've never told anyone this, but I once pranced with a dog. I once dreamed of being a Train Conductor. Now I can be found prank-calling celebrities all day. I look forward to eating until I loathe myself with you.
#54165
By OthersideDeployer
The Moth Catcher
In this psychologically bed-headed portrait, a creature sets in a trance; his eyes devolved and vestigal, his third eye open but hardened and in a form resembling a Sharingan. The imagery therefore expresses an awareness existing in corporeal introspection. The creature’s mind sprouts, on the left side, an emerging face, grinning. To the right side of the head, red tentacles and fingers intertwine–a collaboration of invertebrate and vertebrate consciousness cooperatively handling paint brushes of the sort used to build an oil painting. The neck and throat bristle with random thorns, as from a rose or the upper portions of a beak sprouting from its flesh. The neck itself disassociates into layers of membranous material, terminating upon an abstracted base of convoluted forms composing its body. The nose is virtually non existent, more a sinus reiterative of the shape of the third eye. Set against the exposed teeth peering out of thick, meaty cheeks, a skeleton-like impression results. That impression sets behind a visceral set of lips and tongue, which is the creature’s prime seat of awareness. Sensual, organic, the tongue organ hangs, meaty, and with consciousness of a sea cucumber. It illuminates at the tip, drawing the attraction of a nearby moth–with mystery of purpose.
The Switch
The Switch is a unique, “one of one” NFT that demonstrates the evolution of artwork in the digital realm. The Switch is developed to change form at a specific point of time in the future, known by Pak. The evolution is determined and rendered immutable by smart contracts, or self-executing code on the Ethereum blockchain.