The NFT market is experiencing a development that can be described as very personal. But that just matches the specificity of this emerging sector, which appeared as such over the past year. All mainly driven by the release of new successive and sometimes (very) popular collections. And a “fluctuating” growth curve that makes its opponents cry speculative bubble… or repeated scams. But in the end, and with the little available afterwards, a regular and increasingly important adoption. With a total amount that the collectors have (already) spent, it is approaching that of the entire last year.
The NFT market divides the ranks of crypto investors. But that doesn’t stop it from establishing itself in this ecosystem as an industry in its own right. With an ever-increasing acceptance, driven by collectors and investors who often find themselves outside this digital world. And an observation, perhaps at the origin of the mistrust it provokes: wouldn’t it ultimately be one of the main gateways to this long-awaited adoption?
And like any new digital experience, the NFT market is suffering from its explosive and high profile success. With the proliferation of scams and other fraudulent operations that were staged against much of its collectors. But that, of course, does not stop them from continuing the adventure, with an amount spent that is unknown to the crisis. And this even if the registered growth is not very linear, like almost everything related to the cryptocurrency sector.
NFT A market with fluctuating dynamics
The general impression and the a priori Stubbornness is one thing, the numbers are another. And this is what the Chainalysis structure regularly offers in the cryptocurrency and blockchain technology sector. With a recent study on the NFT tokens market† And more specifically about the “transactional activity” recorded since the beginning of this year. Especially after the real explosion that hit its development in 2021, with billions of dollars. And a simple note in the introduction to this analysis: non-fungible tokens (NFTs) are one of the fastest growing and most important parts of Web3 The past two years. †
‘Cause in a little over a crazy year, this NFT market has grown from tens of millions of dollars to several billions† But with a development curve that Chainalysis presents as “fluctuating from month to month.” The latter split between regular highs at the start of new ATHs and painful descents like last February. With possible reason, the successive launches of new popular collections are often carried by moves from the whitelisted FOMO version, and the ambition to do as well as the now iconic Bored Ape Yacht Club (BAYC).
NFT Already spent $37 billion
Because despite this seemingly disjointed development curve, the results are there. The total amount spent by NFT collectors is estimated to be $40 billion for 2021. And transaction volumes on the industry’s key platforms, which have continued to confirm their gains since the start of the year. This even if we reject all or some of the systemic wash trading caused by the highly (too) stimulative business model introduced by the LooksRare (LOOKS) market since January.
Indeed, according to the data collected by Chainalysis, this year 2022 could already be that of all records. With a total amount sent by collectors as of May 1, already showing a total of $37 billion† That is, almost as much as the whole of last year in just 4 months. And this benefited 950,000 unique addresses that bought or sold NFTs in the first quarter, compared to 627,000 in the fourth quarter of 2021.
† In total, the number of active buyers and sellers of NFT has increased every quarter since March 2020. In the second quarter of 2022 (as of May 1), 491,000 addresses carried out NFT transactions. A good pace to continue this trend of quarterly attendance growth† †
NFT A global market
Finally, the conclusions of the Chainalysis structure allow to confirm that: the NFT market is international in scope. Leading in this dynamic are the areas of Central and South Asia, which account for 25% of registered web traffic to dedicated platforms. The other two podium places go to North America and Western Europe respectively.
Knowing that the vast majority of transactions made in the NFT market are “retail” purchases. † That is, for amounts less than $10,000. At the same time, there has been a remarkable stabilization in the number of collector transactions (between $10,000 and $100,000) since the beginning of the year. That suggests, according to Chainalysis, “that right now the addition of new retail NFT investors is keeping pace with the addition of larger NFT investors. †
Whatever, the activity and volumes recorded by the NFT market remain clearly dominated by a very limited number of collections† With over $1 billion in sales for Otherdeed ($785.4 million), Bored Ape Yacht Club ($155.8 million) and Mutant Ape Yacht Club ($127.4 million) in the past 7 days alone. Which means over 60% of the $1.74 billion generated by this market over the same period (data: CryptoSlam). And a full box for the Yuga Labs structure behind these three projects.