Why are NFTs more popular then DeFi?
NFTs just took the world by Storm, and by many estimates …
… diverting capitol from DeFi and slowing the DeFi March to a trillion dollars in total value locked!
Why? Simplicity versus Complexity
Yes.. ease of use, ease of understanding and similarity to familiar processes or concepts matters when your seeking mass adoption and widespread use.
As I see it, decentralized finance is a great opportunity to make money for those who can figure out it’s complexity. It has and will continue to grow. But the explosive growth of NFTs is very illustrative of the time honored rule that simplicity wins over complexity every time in any race to garner market share.
Buy low, sell high
This concept is easy to understand, and very familiar to most people. All businesses which sell goods buy low and sell high. This concept is the same for many businesses from baking and selling bread, drop shipping on Amazon.
NFTs were quickly embraced by the pop culture famous
Yes, as the concept of selling celebrity memorability is very familiar to celebrities and their merchandisers. So selling their memorabilia on cryptocurrency became a way to keep up with the changing technological landscape.
I was amazed at how quickly NFTs suddenly were the crypto darling of movie stars, famous musicians and large organizations like the USA NBA. Snoop Dogg, Lebron James and others promoted their NFTs and NFTs became a household word.
Meanwhile DeFi stagnated
Yes, decentralized finance that 100x one year and 1000x the next year, going from millions of dollars invested in DeFi to billions of dollars invested in DeFi in one year. So the expectation of reaching one trillion seemed a reasonable goal.
DeFi is very profitable, but very complicated.
I run a business called EasyDeFi, which allows people to earn high APR returns on their investment capitol without having figure out how to get their money onto DeFi platforms. It has attracted many people and their money, because it’s easy.
NFTs offer the same simplicity, and the promise of life changing gains.
This is easy adoption of familiar items or processed is covered in economic psychology courses and we are seeing the idea made real with NFTs.
What can we learn?
- Ease of use wins customers
- Simplicity is more attractive then complexity.
- The familiar is more comfortable and more easily adopted then the dissimilar
- Our ecosystem is wonderful, but it’s not easy
- Hive could grow faster if it was easier or if the process to learn it could be gamified.
- Which is my next project. The gamification of Hive.
