The market for non-fungible tokens or NFTs moved $ 26.9 billion in cryptocurrency transactions in 2021, according to a report Posted by blockchain analytics firm Chainalysis. The firm notes that the popularity of these digital assets soared this year, becoming a global trend.
NFTs have become extremely popular thanks to their ability to represent digital property. Non-fungible tokens store data in the chain, which is associated with images, videos, audios, or even real-world objects. Furthermore, as they are designed to be unique and unrepeatable, they grant their owner ownership of the associated data or objects. These qualities are what have made them extremely popular.
NFT market in cryptocurrencies
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According to Chainalysis, NFTs are gaining ground every day as investment assets. Their demand as digital assets has to do with their potential to revalue significantly in the future, even if it is a rather risky investment. The company indicates that anyone who pays attention to the market for NFTs knows that investors flock to it because they can achieve high returns if they invest in them, Explain. However, the firm points out that only 28.5% of those who have bought newly minted NFTs as investment assets have achieved significant profits.
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CryptoPunks y Bored Apes
The value of the most traded collections within this market has grown exponentially. The NFTs of the CryptoPunks or Bored Apes collections have appreciated more than 1,400% in the last year. Others, like those of the CriptoKitties, which at one point caused a great frenzy, have declined in value as interest from investors and traders declined. Although CryptoKitties continue to be one of the most important NFT collections by volume traded, the unit price of their NFTs decreased significantly in 2021. According to data From Opensea, in mid-September, cryptokitties reached a minimum price of 6.6 ethers. Currently around 0.15 ethers are traded. Also, Meebits, which were trading for a low of 12 ethers in May, are now at 3.35 ethers.
Opensea, the most popular market
From minting NFTs, to buying, trading or auctioning them, Opensea offers many tools and facilities to users to create and sell their own collections of non-fungible tokens, within one platform. no custodial. Thanks to these profits, Opensea has become the largest NFT market in the industry. This year it has moved more than $ 16 billion in cryptocurrencies, according to Chainalysis.
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The number of active NFT collections on Opensea reached 2,300 at the end of October, which means a 1,200% growth compared to March, when there were only about 194 active collections. Grayscale highlighted that the United States is the country with the highest number of active users within Opensea.
The report notes that despite the rise of attractive new NFT collections, CryptoPunks continue to be the most heavily traded to date. HashMask, Bored Apes and Mutant Apes show extraordinary peaks in the months of July and September, while the weekly traded volume in the CryptoPunks has been more constant, showing variations during the months of August and September.
Weekly volume traded in the main NFT collections on the market. Source: Grayscale
Data from Opensea also shows that CryptoPunks is the NFT collection with the highest volume traded to date, with a total of 738,950 ethers, valued at $ 3.19 billion. Bored Apes and Art Blocks follow, with volumes of 252,250 ethers and 206,520 ethers, respectively. Metaversos NFTs, such as Decentraland and The Sandbox, are in the Top 10 of the NFT market, with transacted volumes of 236,040 ethers and 103,420 ethers, respectively.
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NFTs for retail markets
Another point that the firm highlights in its report is that NFT trading is currently more retail oriented than cryptocurrency trading in general. Thus, most of the transactions that occur within the NFT platforms and markets oscillate in an average of $ 3,000 USD – $ 4,000 USD, although in recent weeks several platforms have entered into transactions for several million dollars.
Total value sent and average value of NFT transactions. Source: Grayscale
The company highlights that transactions between $ 10,000 and $ 100,000 in cryptocurrencies increased in the last year. Now, these transactions represent 19% of all NFT transactions on the market, showing 300% growth compared to just 6% at the beginning of March. Institutional value transactions, which exceed $ 100,000, represent about 1% of all transfers that have occurred in the NFT market this year.
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Finally, the report states that the creation of whitelists by the creators of NFT projects will increase the popularity of NFTs and the profits of investors. Whitelists grant privileges to the first users or investors of a certain project. This means that those who are on these lists can buy NFT at cheaper prices than the rest, which will allow them to obtain greater profits when selling them.