Cross-chain trading increases opportunities for NFT projects and collectors.
XP.NETWORK, a multi-chain bridge working to unify NFT ecosystems across different networks, now connects Hedera NFTs to 30+ blockchains including leaders in the $7.71B NFT market, such as Ethereum, Polygon, and Solana.
The integration is a critical step in the maturation process of Hedera’s NFT ecosystem because it connects projects and collectors to a cross-chain, global market, creating new opportunities by enhancing interoperability, exposure, liquidity, and scalability.
HOW IT WORKS
Let’s say someone bridges a BAYC over to Hedera, XP.NETWORK deploys a contract on Ethereum to hold BAYC and then deploys a BAYC contract on Hedera, using HTS to mint the wrapped BAYC. Now, the destination account on Hedera is in possession of the NFT.
From here, there are two potential courses of action: The Hedera account owner can send the BAYC NFT to another non-native chain or send it back to Ethereum.
If they send it back, the wrapped NFT will be burnt on Hedera and released on Ethereum.
If they send it to a different chain, a new BAYC contract is deployed on the destination chain, triggering a burn of the assets on Hedera and a new mint of the wrapped BAYC in the receiver’s account.
BENEFITS FOR NFT PROJECTS
Without bridges, NFTs are resigned to be created, collected, and traded on a single blockchain. This can leave projects vulnerable to the effects of the economic dynamics of the chain on which they’re built.
For example, if demand for an NFT project dries up within the native community, the only logical pivot available for the dev team is to start from scratch and rebuild the project on a different platform.
By integrating the XP.NETWORK bridge, Hedera is giving NFT projects built in our ecosystem multiple opportunities to thrive, allowing them the opportunity to benefit from Hedera’s tech stack without giving up exposure to broader pools of collectors.
And projects built on other ecosystems now have the ability to promote cross-chain and introduce their collections to the Hedera community, creating more opportunity to grow.
It’s a win-win.
For a more technical breakdown, check out XP.NETWORK’s GitHub FAQ’s.
BENEFITS FOR HEDERA NFT COLLECTORS
The Hedera community now represents a new market for non-native NFT projects, including some of the most well-known like Bored Apes and Cyber Punks, to explore and find new users and use cases for their products.
In addition to the opportunity to support more mainstream projects, there are hundreds of thousands of NFT collections on chains like Ethereum, Polygon, and Solana that are struggling to find footing within the communities of their native chains.
Not because they aren’t building something worthwhile, but because they simply can’t break through the noise cluttering the ecosystem.
Through this integration, Hedera can become a blue ocean for these projects, fertile ground where innovative projects migrate to be cultivated by our more discerning, in-the-know community.
For example, XP.NETWORK integration has already helped hundreds of NFT projects move from the ecosystem where they could not succeed to the one where they not only flourished but occupied the top 10 positions in the target ecosystem volumes of sales both in transactions and price.
Here are a few examples: