Non-fungible tokens (NFTs) have quickly become the new hot topic in the cryptocurrency sector, as evidenced by Litecoin inventor Charlie Lee, who compares the current surge in NFT interest to the ICO mania of 2017.
The recent decline in the cryptocurrency market hit the decentralized financial (DeFi) tokens pretty hard, but when the bitcoin price rebounded from $ 50,000, the DeFi and NFT tokens rebounded quickly.
One project that has successfully used the DeFi and NFT boom is Aavegotchi (GHST). The project benefits from its association with AAVE while focusing on creating value-adding NFTs that are limited in scope.
Data from Cointelegraph Markets and TradingView show that GHST rose 35% from $ 1.36 on March 1st to a new all-time high of $ 1.86 on March 2nd when the community made its first NFT sale.
GHST / USDT 4 hour chart. Source: TradingView
Three reasons for the GHST’s breakout to a new all-time high are the recent migration to the Polygon network, the successful completion of the first NFT sale and the excitement about the upcoming launch of the mainnet.
Users connect to Polygon for lower fees
Transaction fees on the Ethereum (ETH) network have risen since the beginning of 2021 and show no signs of a decline anytime soon.
In response, the Aavegotchi team announced on January 26th that the project would build a bridge to the Polygon Network, an Ethereum Layer 2 solution. Once migrated, users will be able to transact, purchase items in-store, and deploy their GHST tokens for the cost of .0001 MATIC, which is a significant price reduction over the current cost of transactions with Ethereum.
The GHST price rose from $ 0.61 on Jan 27 when the Polygon Bridge was first released to $ 1.25 on Feb 14 when users became more active in the community due to lower transaction costs.
Optimism grows as the start of the mainnet approaches
One of the biggest drivers of GHST was the official launch of the mainnet on March 2nd.
While most NFT projects include content on how to use Web2 servers or IPFS, Aavegotchi took his project to the next level by creating its own blockchain. In this way, each GHST token can permanently store its unique personality traits, staked cryptocurrencies and visual elements on the blockchain, which can help improve its collectibility and long-term value.
This also creates the unique opportunity to combine DeFi with NFTs by storing one of Aave’s numerous interest-generating tokens directly in a specific Aavegotchi, making each a rare, unique form of digital piggy bank.
NFTs sell out in less than a minute
When Aavegotchi launched its main network, the project also performed its first “portal drop,” allowing token holders to purchase a portal capable of conjuring up a high-yielding Aavegotchi NFT.
Each portal was sold for 100 GHST and the demand was so high that the 10,000 portals sold out in less than a minute.
By integrating with Aave and its aTokens, NFTs create unique interest-bearing representations of the funds delivered to the Aave protocol on the GHST platform, a first for the NFT space.
Aavegotchis are designed to combine elements from playing and collecting to combine digital collectibles with real value. This adds new functionality to NFTs and will likely help each Aavegotchi add value over time. In order to extract the value of aTokens that are locked in an NFT, the Aavegotchi must be destroyed in the process.
Future portal drops, low transaction fees and an expanding NFT store show that there is good demand for GHST tokens, and this will certainly increase as the platform is expanded to include new levels of gamification.
