Cryptocurrency exchange Kraken is building its non-fungible token exchange (NFT) and wants to implement new features.

Cryptocurrency exchange CEO Kraken Jesse Powell discussed the company's upcoming NFT platform during a recent interview with Bloomberg News . He stated that the NFT space should enter the utility phase of its adoption. He stated that;

“If you deposit a CryptoPunk in Kraken, we want to be able to reflect the value of that in your account. And if you want to borrow money for it. ”

Powell believes the next phase in the NFT space is utility. In addition to just buying and selling NFTs, Powell believes NFTs will gain more use, especially in the decentralized finance (DeFi) sector. He added this;

"Phase one was speculation, phase two is buying art and supporting artists, phase three will be the functional use of NFTs."

Kraken wants to become the first centralized encryption exchange to launch an NFT platform that would allow people to use their NFTs as collateral. As a result, Kraken acquired Staked, an infrastructure platform that enables custodial encryption, in an attempt to attract new investors.

Kraken joins other leading cryptocurrency exchanges, including Binance, Coinbase and FTX, in launching an NFT platform. The NFT space has become very competitive thanks to the huge growth recorded this year.

In 2020, the total volume of NFT trading was just $33 million. However, the number has grown to $1.3 billion in 2022, representing a 43,000% year-over-year increase. The increase in NFT trading volume has attracted big players like Binance and Coinbase to the market.

OpenSea remains the largest NFT market, accounting for over 80% of the total trading volume. The NFT space is expected to become even larger in the next year as more companies and investors enter the market.

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