A lot of attention has been given to the crypto-market over the past few weeks after major assets registered new all-time highs. Solana was the primary to create common hype, which was adopted by Cardano’s explosive rise to $2.94. Now, with Bitcoin reaching $50k recently, the general market is currently obsessed with price movements.
Amidst all of the commotion, nevertheless, Ethereum and its NFT market noticed one other breaking growth, one which concerned a significant funds processing platform.
According to reports, Visa Inc. purchased an NFT, namely CryptoPunk #7610, which is a digital avatar. Visa purchased it for $150,000 and in accordance with the corporate, it’s consistent with its intent to help the rising NFT and blockchain trade.
What is Visa’s history with rising technology?
From knuckle-busters (A manual credit card impression machine) to paper credit cards, Visa has had a reputation for investing and collecting memorabilia related to commerce and finance. Consequently, the choice to splurge $150,000 on a CryptoPunk NFT isn’t a surprise. Nonetheless, it might open the narrative for a bigger image.
Now, the transaction was facilitated by Anchorage Digital, a crypto-custody bank that was recently seized by the US Marshals. Whereas Anchorage offered the NFT to Visa on behalf of a 3rd occasion, finally, Visa would possibly dip its toes in deeper.
How does it matter for Ethereum and NFTs?
It might not seem like much right now, but the fact that Visa is open to the idea of NFTs, and acknowledging its interest, could lead to a plethora of opportunities on both sides. Hypothetically, NFTs have the potential to remodel numerous industries with respect to leisure, retail, social media, and commerce. NFT’s space has already captured massive user engagement, which is a part of its ability.
Visa is recognizing that and over time, it could start to refine higher consumer expertise and facilitate the seamless acquisition of NFTs and not using a third occasion.
Ethereum’s position in between all this remains golden. NFTs are bought and purchased by means of Ether’s utility and the whole ecosystem is established on its blockchain. For Visa, as a payments processing network, eventually it would mean executing transactions on the Ethereum blockchain through a regulated party such as Anchorage.
It is very important notice that nothing is about in stone, nevertheless. Ultimately, if Visa wants to establish a say in the NFT market, it will have to look into the idea of a centralized payment system on a decentralized ledger.
CEO of MyEtherWallet Kosala Hemachandra shares similar views, with the exec claiming,
“Ethereum has always been a popular choice among institutional investors. Now, it’s increasing to different property constructed on the Ethereum blockchain. I believe institutional investors are looking into and finally understanding the power of DeFi, especially right now the power of NFT. NFTs can substitute a number of points in mainstream markets which are associated to counterfeits and provide chain issues.”