Before non-fungible tokens (NFT) came on the scene, the following chart was a fairly good representation of patterns that happened in the industry.
Fiat currency flowed largely through Bitcoin and other large caps before trickling down to mid caps and finally to low caps (also affectionately known as “shitcoins”).
A couple of things have changed in the past two years, one being the emergence of NFTs as a digital asset class that fits somewhere in the above cycle.
It’s my opinion that NFTs, especially PFPs, are a hybrid of an identity solution, a club and a fungible token. There are different sizes by market cap, Bored Ape Yacht Club (BAYC) and Azuki being the large cap of the NFT market, Mfer’s, Nakamigo’s, and Milady’s being the mid caps and then basically the rest making up the small caps. Finally, add to the mix memecoins. They really do not profess to have any utility other than social media posting and having fun!
Fun + memes can now be a digital asset? Yeah. We see this by looking at $DOGE, $SHIBA, and now $PEPE, which reached a $150m market cap in several days. The…