- Over the last few months, China’s NFT market has grown exponentially, and this trend appears to continue.
- Alibaba and Tencent have decided to construct their semi-private blockchain networks rather than use Ethereum.
- Despite the worldwide market meltdown, NFT networks are still thriving.
China now has over 500 digital collectible platforms, a 5X increase from February 2022, when the total number of NFT platforms was just over 100.
Since the government enacted the national ban on the specified date, other crypto crackdowns have occurred in China. Despite this, NFT networks continue to thrive.
The increase in membership has demonstrated the expansion. Compared to the small number of members on the first crew, there are more people in the space now.
According to a local Chinese media article, the remarkable expansion in the number of NFT platforms corresponds with the country’s growing interest in digital riches. Two large technology firms, Tencent and Alibaba, have shown interest in the new business and filed numerous trademark patents.
Both Alibaba and Tencent have decided to forego Ethereum in favour of developing their semi-private blockchain networks. This sort of blockchain was created by combining the blockchain and the distributed ledger. It’s a type of blockchain that isn’t decentralized but managed by a limited group of people.
During the stringent COVID-19-induced lockdowns in China, NFTs became a way for people to express themselves digitally. In May, at the height of the government shutdown, Shanghai residents advertised hundreds of NFTs on OpenSea.
Individuals and corporations continue to participate with digital collectibles despite the lack of regulatory oversight, albeit with caution to avoid direct conflict with authorities. Alibaba recently released a new NFT solution and then swiftly removed all mentions of it from the internet.
The rise in Chinese interest in digital collectibles comes at a time when the global cryptocurrency market has lost hundreds of billions of dollars in market value, mainly owing to the ongoing collapse of many projects, from medium to major.
Popular NFT collections, such as the Bored Ape Yacht Club, have also achieved the lowest floor price.