In recent times, the importance of Meta-Fi has increased substantially, especially due to the exponential growth in demand for non-fungible tokens (NFT), both from established and new users. In this context, Antonio Velardo tells us everything there is to know about Meta-Fi, the moment when the metaverse and fiction meet.
The relevance of NFT today, according to Antonio Velardo
Taking the above, Antonio Velardo explains that NFTs are incorporating a new type of user today, at a time when Decentralised Finance (DeFI) has fallen short. This is mainly due, he says, to the fact that NFTs have a much simpler and more digestible nature than DeFIs, which themselves require a greater understanding of the world of finance. It is this latter reason that makes it difficult for younger users, especially those in GenZ, to gain access.
By contrast, argues Antonio Velardo, CLS are simple at first glance, although they involve a lot of complexity in their formulation. They represent today the nexus affecting property, graphic design, JPEFS and gaming. They have a relative value in ETH or other cryptocurrencies, which is often priced by secondary markets. What this new phase of Meta-Finance offers is the possibility of unlocking that value.
That said, Antonio Velardo explains that Meta-Fi or Metaverse Finance is the term currently used for the products, services and protocols that enable the complex financial interaction between non-fungible and fungible tokens.
The NFT market over time
Velardo argues that the emergence of Meta-Fi is a natural occurrence and is mainly related to an increase in the use and integration of NFTs. They call this process the financialisation of NFTs. The process has already started, he explains, and can be seen by the fact that, over the last year, the overall volume has increased dramatically from millions of dollars to billions of dollars.
Subsequently, there was a brief dip, but margins remain high, indicating active and sustained demand. Among the sectors that represent the highest sales are Art & Collectibles and Game-Fi.
What are the benefits of Meta-Fi?
As explained by specialist Antonio Velardo, with its integration with DeFI protocols, Meta-Fi could reduce the financial and knowledge requirements needed to participate in the NFT markets. This will allow a new wave of retail users to enter the market, driven especially by younger GenZ users. This is expected to lead not only to an increase in sales, but also to a significant focus on gamification.
Another benefit has to do with usability. It represents exposure to a wider range of monetisation methods that allow new potential cash flows to be generated by maximising NFT ownership. This includes the possibilities of betting, leasing and earning interest and even using them as collateral when ordering a financial service.
Finally, Velardo says that this mechanism represents increased liquidity in the market. Users are constantly evaluating asset prices, which makes it easier to exit the market. For all these reasons, Antonio Velardo believes that the future is substantially oriented towards the world of Meta-Fi, which will continue to grow.