Marathon Digital Holdings Inc. (MARA) stock rose around 5% after the crypto market revival. The stock price increase could also result from the increasing NFT and digital holdings craze. Eminem, the 49-year-old rapper, just spent around $462,000 to buy a non-fungible token (NFT) of the Bored Ape Yacht Club early this year.
The rapper has also purchased NFT resembling him for 123.45 Ethereum. He even changed his Twitter avatar to the picture of his “NFT self.”
What is an NFT?
An NFT, simply put, is a form of digital art, and it is stored in Blockchain- a digital ledger that also provides a digital certificate or proof of ownership.
The NFT craze has risen these days as collecting NFTs is similar to collecting famous artworks. The best part is NFT is more of an investment as it can be used for blockchain transactions. The NFT craze has become more evident as celebrities like Snoop Dogg, Jimmy Fallon, Grimes, and others have also bought the digital tokens.
NFT and MARA: the connection
Non-fungible token (NFT) as a stored unit is linked to Decentralized Finance (DeFi), as both of these operate mainly on the Ethereum Blockchain. The Ethereum blockchain allows to development of a wide range of financial and investment applications. Thus, the rising popularity of the NFTs is also good for the pioneer companies of the DeFi ecosystem, which includes Marathon Digital Holdings (MARA) as well.
These DeFi supporters like WonderFi Technologies (NEO: WNDR) (OTCPK: WONDF), Marathon Digital Holdings, Inc. (NASDAQ: MARA), Hut 8 Mining Corp. (NASDAQ: HUT), could therefore see huge growth this year.
Recently Marathon Digital Holdings Inc. (MARA) released its 2021 third-quarter results with a 73% rise in its revenue from the second quarter of 2021. It also has a healthy growth rate of 6,091% year-over-year and a market capitalization of $3.187 billion. The company has also reported a non-GAAP income of $51.7 million.
A big reason for MARA’s success is that it produced 1,252 self-mined bitcoins in the Q3 of 2021, which was 654 in the previous quarter.
The MARA stock trades at $31.05, up 1.47 points (4.97%) on January 12 at 9:51 GMT-5.