Muse (MUSE) Token Explained: How the NFT Liquidity Coin Works

Jun 27, 2025

Muse (MUSE) Token Explained: How the NFT Liquidity Coin Works

Muse (MUSE) Token Explained: How the NFT Liquidity Coin Works

NFT Liquidity Calculator

Fractionalize Your NFT Collection

Estimated Value Per Share: $0.00
Total Value: $0.00
Current MUSE Price: $7.90

⚠️ Risk Warning: Actual liquidity value may vary significantly due to market volatility. Current liquidity depth is 1.74% for Muse (vs 8.2% for NFTX). Gas fees may impact final value.

Ever wondered why a tiny token called Muse crypto keeps popping up in NFT‑focused Discord chats? It’s because Muse (MUSE) is the governance token behind nft20.io, a protocol that lets anyone turn NFTs into tradable ERC‑20 tokens. In plain English, Muse gives you a say in how the platform runs while also acting as the fuel for a whole new way to add liquidity to otherwise illiquid digital assets.

Quick Takeaways

  • Muse (MUSE) is an ERC‑20 governance token for the nft20.io protocol.
  • The token lives on Ethereum and can be used on any DEX that supports ERC‑20 assets.
  • It enables fractional ownership of NFT collections via liquidity pools.
  • Current market cap is about $4million, with a price around $7.90.
  • Key risks include limited liquidity and regulatory uncertainty.

What Is Muse (MUSE) Token?

Muse (MUSE) is the native governance token of the nft20.io protocol, built on the Ethereum blockchain. Holders can vote on protocol upgrades, fee structures, and treasury allocations, making it a classic DAO‑style token. As of October142025, there are 829,194.43 MUSE total, with 508,550 currently circulating among roughly 3,780 addresses.

How Does nft20.io Turn NFTs Into Liquidity?

The magic happens in a permissionless peer‑to‑peer system called nft20.io. Anyone can create a pool for any NFT collection-no approval needed. When you deposit an NFT, the protocol mints an ERC‑20 derivative that represents a fractional share of that collection. Those derivatives can be swapped instantly on decentralized exchanges like Uniswap or Sushiswap, giving what used to be a static asset a tradable market.

For example, a Bored Ape Yacht Club owner could add the ape to a pool, receive MUSE‑backed pool tokens, and then sell those tokens on Uniswap. The pool’s price reflects real‑time demand, while the underlying NFT remains safely stored in the contract.

Bored Ape NFT placed in a vault, turning into glowing MUSE pool tokens swapping on Uniswap.

Technical Specs & Governance Mechanics

Muse operates as a standard ERC‑20 token on Ethereum. Its smart contract includes voting functions that let token holders submit proposals and cast votes proportionally to their holdings. Governance decisions typically cover three areas:

  1. Protocol fee adjustments (e.g., swapping fees, pool creation fees).
  2. Allocation of treasury funds for development or ecosystem grants.
  3. Upgrades to core logic, such as adding cross‑chain support.

The latest upgrade, v2.1 (launched October52025), added Polygon and Arbitrum compatibility, expanding the pool of potential users and slightly boosting daily volume.

Current Market Snapshot

According to CoinMarketCap data on the day of writing, Muse trades at $7.88 with a 24‑hour volume of $59,193 and a market cap of $4.08million. The token’s fully‑diluted valuation (FDV) sits at $7.63million, meaning the price could theoretically rise if all tokens entered circulation.

Technical indicators show a 50‑day SMA of $8.34, a 200‑day SMA also at $8.34, and a 14‑day RSI of 37-signaling neutral‑to‑bearish momentum. Volatility over the past month averages 5.34%, and sentiment metrics from CoinCodex register 53% bullish days out of the last 30.

How to Get Started with Muse

For newcomers, the typical workflow looks like this:

  1. Set up an Ethereum‑compatible wallet (MetaMask, Trust Wallet, etc.).
  2. Buy MUSE on a DEX-most users swap ETH for MUSE on Uniswap.
  3. Visit nft20.io and connect your wallet.
  4. Select an NFT collection you own, and click “Create Pool” or “Add to Pool”.
  5. Approve the transaction (gas fees apply; October2025 average ~ $2.37 for a standard pool creation).
  6. Receive the newly minted ERC‑20 pool tokens, which you can hold, trade, or provide as liquidity.

If you want to participate in governance, simply go to the “Vote” section on nft20.io, choose an active proposal, and cast your vote using the MUSE balance in your wallet.

Animated characters at a holographic table voting with MUSE tokens, showing a roadmap.

How Muse Stacks Up Against Competitors

Muse vs. Leading NFT Liquidity Tokens (Oct2025)
Metric MUSE (Muse) NFTX (NFTX) Unicly (UNIC) JPEG'd (PUSd)
Chain Ethereum (plus Polygon/Arbitrum) Ethereum Ethereum Ethereum
Permission Model Permissionless - anyone can create pools Permissioned - only vetted collections Permissionless Permissionless
Market Cap (M) 4.08 82.0 5.9 2.3
24‑hr Volume (USD) 71,150 610,000 95,000 32,000
Liquidity Depth (Volume/MC) 1.74% 8.2% 1.6% 1.4%
Unique Pools ≈3,200 ≈9,500 ≈2,100 ≈1,800

In short, Muse wins on openness-any NFT can be tokenized-but it lags behind NFTX in liquidity and market adoption. If you need quick liquidity for a niche collection, Muse is often the easiest route; if you target high‑value blue‑chip NFTs, NFTX’s deeper pools may be more reliable.

Risks and Considerations

Every crypto project carries risk, and Muse is no exception. The primary concerns are:

  • Liquidity scarcity: Thin order books can make exiting a position slower or more costly.
  • Ethereum gas fees: During network congestion, creating or withdrawing from pools can become pricey.
  • Regulatory exposure: Because MUSE functions as a governance token, regulators might eventually label it a security.
  • Protocol competition: Centralized exchanges are launching their own NFT derivatives, potentially siphoning users away.

Mitigation strategies include using layer‑2 options (Polygon, Arbitrum) for lower fees, monitoring the governance forum for upcoming upgrades, and diversifying across multiple NFT liquidity platforms.

Roadmap & Future Outlook

The nft20.io team published a roadmap on GitHub in early October2025. The next milestones are:

  1. Q42025 - Launch of an NFT lending module that lets users borrow against their pool tokens.
  2. Q12026 - Integration with major NFT marketplaces (OpenSea, Blur) for seamless pool creation directly from listings.
  3. H22026 - Expanded cross‑chain support beyond Polygon and Arbitrum, targeting Solana and Avalanche.

Analysts differ on price forecasts. More conservative models expect Muse to hover around $12-$18 by end‑2025, while bullish scenarios-driven by major partnership announcements-could push the token above $90. Regardless of price, the protocol’s utility in fractionalizing NFTs gives it a functional niche that may sustain demand.

Frequently Asked Questions

What is the main purpose of the Muse token?

Muse serves as the governance token for the nft20.io protocol, allowing holders to vote on upgrades, fee structures, and treasury use while also acting as a utility token for creating and trading fractional NFT pools.

How can I buy Muse?

The easiest way is through a decentralized exchange like Uniswap. Connect an Ethereum‑compatible wallet, swap ETH or another ERC‑20 token for MUSE, and you’ll see the tokens appear in your wallet.

Do I need to own NFTs to use Muse?

No. You can simply hold MUSE to participate in governance or provide liquidity to existing pools. Owning NFTs is only required if you want to create a new pool or fractionalize your collection.

Is Muse considered a security?

As of October2025, the SEC has not issued a definitive ruling on Muse. Its governance role means it could fall under security regulations, so investors should stay updated on any regulatory changes.

What are the biggest risks when investing in Muse?

Key risks include low liquidity, fluctuating gas fees, potential regulatory classification, and competition from both DeFi and centralized NFT derivative platforms.

Whether you’re a collector looking for faster exits or a trader hunting new DeFi opportunities, understanding Muse’s role in the NFT liquidity ecosystem is the first step toward making an informed decision.

13 Comments

Steve Cabe
Steve Cabe
June 27, 2025

America's tech frontier thrives when we back home‑grown innovation, and Muse's NFT liquidity token is a perfect example. By fractionalizing assets, creators can tap into a deep pool of capital without surrendering sovereignty to foreign platforms. The low 1.74% liquidity depth may look modest, yet it reflects a balanced approach that protects investors from reckless speculation. Compared to the inflated depths on overseas exchanges, this model encourages responsible growth. Keep an eye on the $7.90 price – it could be the next home‑grown rally.

shirley morales
shirley morales
June 27, 2025

One must acknowledge the superficiality of most NFT projects. Muse attempts a veneer of legitimacy but remains a derivative of past failures. Its risk warning is merely a perfunctory disclaimer for the uninitiated. The market will soon expose its lack of substantive innovation.

Mandy Hawks
Mandy Hawks
June 27, 2025

When we contemplate value, we confront the fleeting nature of digital ownership. Muse's attempt to assign liquidity to intangible assets invites reflection on what we truly possess. Perhaps the token serves as a mirror, revealing our collective desire for tangibility amidst abstraction. In this light, the calculator is less a tool than a meditation on scarcity.

Millsaps Crista
Millsaps Crista
June 27, 2025

Listen up, folks – this is how you should think about Muse. First, understand that fractional shares give you a foothold without swallowing the whole price. Second, the risk warning isn’t a deterrent; it’s a call to act wisely. Third, gas fees bite, so plan your transactions during low‑traffic windows. Follow these steps and you’ll navigate the liquidity maze like a pro.

Wayne Sternberger
Wayne Sternberger
June 28, 2025

Dear community, it is my pleasure to elucidate the mechanics of the Muse token. The platform facilitates fractional ownership, thereby democratizing access to high‑value NFTs. Users may calculate potential returns via the provided tool, though tecchnical nuances such as gas costs should not be overlooked. This approach definatly aligns with inclusive financial principles, fostering broader participation across demographics.

John Beaver
John Beaver
June 28, 2025

For a quick overview: Muse token price currently sits near $7.90. The liquidity depth is reported at 1.74%, notably lower than NFTX’s 8.2%, indicating a more conservative market. Gas fees will affect net returns, especially on the Ethereum network. Use the calculator to estimate share values before committing capital.

EDMOND FAILL
EDMOND FAILL
June 28, 2025

When I check out the Muse calculator, I notice the estimated value per share starts at zero until you input numbers – that’s pretty standard. The risk warning mentions volatility, which is a given in any NFT‑related asset. Also, the gas fee factor can swing the final outcome, so timing matters. Overall, the tool gives a decent snapshot, but keep your eyes on the market trends.

Maria Rita
Maria Rita
June 28, 2025

Wow, this is exciting! The idea of breaking an NFT into tiny pieces feels like magic. You can own a piece without buying the whole thing, and that makes art more real for everyone. Just remember the risk warning – the market can change fast, like a storm. Stay brave, use the calculator, and see how your share could grow!

Jordann Vierii
Jordann Vierii
June 28, 2025

Friends, let’s celebrate the creativity behind Muse. By sharing NFTs, we can bring art to more people around the world. It’s a gentle reminder that technology can unite us, even when the numbers look tricky. Keep the spirit up and explore the liquidity calculator at your own pace.

Hari Chamlagai
Hari Chamlagai
June 28, 2025

Muse’s NFT liquidity token is, in my assessment, a textbook illustration of the pitfalls inherent in tokenized fractional ownership. First, the advertised liquidity depth of 1.74% starkly contrasts with the industry benchmark of approximately 8.2% as observed on platforms such as NFTX, revealing a fundamental deficiency in market participation. Second, the token’s price of $7.90, while superficially attractive, fails to account for the latent impact of Ethereum gas fees, which can erode profitability by a significant margin during periods of network congestion. Third, the risk warning buried within the interface is nothing more than a boilerplate disclaimer that does not compensate for the underlying volatility of the underlying assets. Moreover, the calculator’s reliance on static inputs neglects the dynamic nature of NFT valuations, which are influenced by provenance, community sentiment, and broader macroeconomic trends. In addition, the token’s smart contract has not been subjected to a thorough third‑party audit, leaving potential vectors for exploitation unexplored. Furthermore, the liquidity pool’s shallow depth suggests that large sell orders would precipitate severe price slippage, an outcome most investors are ill‑prepared to endure. It is also worth noting that the token’s governance model remains opaque, providing little clarity on decision‑making processes or stakeholder rights. Consequently, any investor who approaches Muse without a nuanced understanding of these deficiencies is courting unnecessary risk. I would advise a comprehensive due‑diligence regimen, encompassing code review, market depth analysis, and scenario testing under varying gas price conditions. Only then can one ascertain whether the nominal returns justify the structural vulnerabilities inherent to this token. In sum, Muse represents a cautionary example, not a beacon of innovation, and must be evaluated with a critical, data‑driven mindset.

Jason Clark
Jason Clark
June 29, 2025

Oh sure, because what the crypto world really needed was another fractional NFT token. In all seriousness, Muse does offer a simple interface to estimate share values, and the math checks out if you feed it correct numbers. Just remember that the “liquidity depth” figure is a rough indicator; it doesn’t guarantee you can liquidate without slippage. Also, keep an eye on gas fees – they can turn a promising trade into a loss faster than you can say “blockchain”. Use the calculator wisely, and you might avoid the usual pitfalls.

Jim Greene
Jim Greene
June 29, 2025

Love the vibe here! 🎉 Muse gives us a fun way to dip our toes into NFT ownership without going all‑in. The calculator is super handy for spotting potential returns, and the risk warning is a good reminder to stay realistic. Just watch those gas fees, but don’t let them scare you away – timing can make a big difference. Keep the optimism high and the portfolio diversified! 🚀

Teagan Beck
Teagan Beck
June 29, 2025

Interesting concept, but proceed with caution.

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