Despite fluctuating market conditions, NFT collectors are on course to spend more on NFTs in the first half of this year than they will in the entire year of 2021.
Collectors of non-fungible tokens (NFTs) have already contributed over $37 billion in value to non-fungible token marketplaces this year (as of May 1), nearly double the total amount sent in all of 2021.
Throughout 2021, investors transferred $40 billion in cryptocurrencies to smart contracts related with NFT collections and marketplaces, according to a research from Chainalysis.
Since the beginning of last year, the amount of NFT transactions has increased significantly, but the industry’s overall growth has been erratic.
According to the data, NFT transaction volume occurs infrequently and has been declining since mid-February. As of mid-April, the NFT market has made a temporary resurgence, most likely as a result of the recent excitement surrounding Moonbirds and the Bored Ape Yacht Club’s metaverse project, Otherside.
Despite short-term swings in NFT transaction volume, the global market for NFTs remains robust, with 950,000 unique addresses purchasing or selling NFTs in Q1 2022.
As of May 1, Q2 2022, 491,000 unique addresses have transacted with NFTs, indicating that the market is on course to maintain its current growth trajectory in terms of participants.
Chainalysis discovered that NFTs draw users from all over the world, with Central and Southern Asia leading the charge, followed by North America and Western Europe.
The report contradicts the conclusion of a recent Wall Street Journal story, which suggested that NFT sales had plateaued. Although the report indicated that “the NFT business is crumbling,” the top five NFT collections alone accounted for almost $1 billion in primary and secondary sales in the same week.
Chainalysis’ research also comes a day after Coinbase failed to create significant demand in its in-house NFT marketplace. On May 4 — the first day of trading — only 150 transactions happened, with only $75,000 in volume moving through the platform.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.