Non-fungible tokens (NFTs) have quickly become the new hot topic in the cryptocurrency sector, as evidenced by the creator of Litecoin, Charlie Lee, when comparing the current surge in NFT interest with the ICO mania of 2017.
The recent pullback in the cryptocurrency market hit decentralized finance (DeFi) tokens quite a bit, but as the price of Bitcoin rallied back to $ 50,000, the DeFi and NFT tokens rallied quickly.
One project that has successfully capitalized on the DeFi and NFT boom is Aavegotchi (GHST). The project benefits from its association with AAVE, while also focusing on creating value-infused NFTs that are limited in determination.
Data of Cointelegraph Markets Y TradingView show that GHST rose 35% from $ 1.36 on March 1 to a new all-time high of $ 1.86 on March 2 when the community made its first sale of an NFT.
Three reasons behind GHST breaking to a new high include its recent migration to the Polygon network, the successful completion of its first NFT sale, and excitement for the upcoming mainnet launch.
Users move to Polygon for the cheapest commissions
Transaction fees on the Ethereum (ETH) network have risen since the beginning of the year and show no signs of decreasing in the near future.
In response to this situation, The Aavegotchi team announced that the project would connect to the Polygon network, an Ethereum layer 2 solution, on January 26. After migration, users can make transactions, buy items in the store and lock their GHST tokens for the cost of .0001 MATIC, a significant price reduction compared to current transaction costs on Ethereum.
The GHST price rose from a price of USD 0.61 on January 27, when the Polygon bridge was first launched, to USD 1.25 on February 14, as users started to be more active in the community due to cheaper transaction costs.
Optimism grows as mainnet launch nears
One of the biggest drivers for GHOST was the official mainnet launch on March 2.
While most NFT projects are happy to use Web2 or IPFS servers, Aavegotchi has taken his project to the next level by creating his own blockchain. Doing this allows each GHST token to have unique personality traits, staked cryptocurrencies, and visuals permanently stored on the blockchain, which can help strengthen its long-term collectible value.
This also creates the unique opportunity where DeFi can be combined with NFTs by locking one of Aave’s wide selection of interest generating tokens directly onto a particular Aavegotchi, making each one a rare and unique form of digital piggy bank.
NFTs sold out in less than a minute
When Aavegotchi launched its mainnet, the project also carried out its first “portal launch,” which allows token holders to purchase a portal that is capable of invoking an Aavegotchi NFT with performance.
Each portal was for sale by 100 GHST and the demand was so high that 10,000 portals sold out in less than a minute.
Through an integration with Aave and its aTokens, NFTs on the GHST platform create unique, interest-bearing representations of funds supplied to the Aave protocol, something totally new in the NFT space.
Aavegotchis are designed to combine video game and collectible items in an effort to link digital collectibles with real value. This adds a new level of functionality to NFTs and is likely to help each Aavegotchi increase in value over time. To extract the value of a Tokens locked inside an NFT, the Aavegotchi must be destroyed in the process.
Future portal launches, low transaction fees, and an expanding NFT store demonstrate that there is healthy demand for GHST tokens and this is sure to grow as the platform expands to offer new layers of gamification.