The average daily trading volume of NFTs has risen by over a thousand percent year-to-date, according to Lithuanian blockchain analytics firm OpenSea. That number has been steadily rising since the beginning of the year, indicating that the industry’s dominant marketplace is worth a cool $10 billion. But is this growth sustainable? It depends on how you define success. Here are a few things to look for in an NFT.
Average daily trading volume
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The average daily trading volume of the NFT increased by more than twenty-five percent from last year, reaching $23 billion. In addition, the number of unique wallet users has increased to 2.7 million, up from just under two million in 2020. In addition, the amount of NFTs sold per day has also increased. The largest NFT marketplaces are Axie Infinity and OpenSea, with the average price fluctuating between $6,900 and $1,300.
Despite recent negative developments, Herrera said that the market remains healthy. He believes that the growing sophistication of investors has reduced the number of scam projects. According to him, the average sale price for NFT is now below $2,000, down from $6,800 in January. And the daily trading volume has increased significantly across different blockchains, not just Ethereum. This indicates that the NFT market is ready for a big year.
A recent report by DappRadar suggested that the market for non-fungible tokens was reaching a peak in the fourth quarter of last year. In the fourth quarter, the volume of trading was $11.7 billion, up nearly tenfold from January to February. The number of unique NFT wallets also increased. The average price of an NFT climbed from around $150 in August to nearly $4,000 last month, before dropping nearly 50 percent within a month.
The average price of NFTs has fluctuated wildly. The top five most expensive NFTs were sold for a combined $1.4 billion in March 2021. And while the average selling price is below $200, the average daily trading volume has remained stable. In March 2021, 53.6% of NFTs sold for less than $100. Another 2.5% sold for $650-$700. This demonstrates that NFTs are still a good choice for investors who wish to enter the market.
Market size
In an effort to increase consumer adoption, a growing number of big brands are beginning to use NFTs to expand their reach. For example, Visa Inc. recently purchased a CryptoPunk NFT for USD 165,000, adding it to their collection of historic commerce artifacts. Similarly, digitally native brands such as Apple, Google, and Samsung have shown an interest in NFTs, raising their market cap forecasts.
The market for NFTs is expected to hit $24.9 billion in 2021, up from the $95 million in 2020. At that time, there were approximately 2.7 million unique active wallets; nearly half of these were connected to NFT games. The biggest NFT marketplaces by sales value are Axie Infinity and OpenSea. The average price of NFT traded in April was between $6,900 and $1,300, according to a research report.
The most popular NFT usage comes from the decentralized finance applications, with 37% of the industry being spent on such applications. The gaming industry is also a huge player in this space, with game developers developing innovative new games. For example, Arianne, which certifies the ownership of virtual luxury goods, raised EUR9m in venture capital in March 2021, just two weeks before Sorare, a NFT-based fantasy football platform.
The Non-Fungible Token (NFT) market is measured in USD Millions and can be segmented based on the geography, industry sector, and demography. Privately held players dominated the NFT market, but there are also many public-facing players. If you are looking to enter the market, consider purchasing a NFT report to see how the competition is faring. You’ll be able to gain competitive intelligence and identify opportunities and challenges.
Trends
In early 2021, sales of non-fungible tokens (NFTs) exploded. There were several record-breaking sales and lots of curiosity from the general public. NFTs are digital coins or tokens that allow owners to prove ownership of goods. They use the ethereum blockchain as the base, though there are many alternatives. Listed below are some trends in NFT volume. They indicate that the market for non-fungible tokens will continue to grow in popularity.
In addition to the massive growth experienced in Q3, the NFT market has shown some independence from the traditional marketplace. Since January 2022, Google searches for the term ‘NFT’ have dropped more than half. That is a drastic falloff in interest for these non-fungible tokens. It will be interesting to see if this trend continues. In the mean time, it may be a sign of a more stable future for the crypto world.
NFTs are also becoming popular among gamers. The Ethereum-based game Axie Infinity has attracted more than $1.6 billion in NFT transaction volume since June. Players purchase virtual monsters and win prizes in exchange for crypto tokens. In certain countries, these crypto tokens are the equivalent of a living wage. The trend is not limited to games, however. Sound effects, sporting events, and even tweets are sold for millions.
A recent drop in crypto prices has caused investors to question the sustainability of NFTs. While they use the same blockchain technology, NFTs are paid for with crypto such as ETH and BIT. However, the recent growth of NFTs is not based on the price of these two currencies, making it difficult to justify the volume of sales in this space. One cryptocurrency trader pointed out that the hype may have been due to pent-up demand.
Trading platforms
Despite a recent dip in volume, the total amount of NFTs traded in March was still higher than any month since January. OpenSea accounted for almost 80% of the monthly trading volume during the first quarter of 2022. However, demand has decreased in tandem with the volume of transactions. From January to February, the daily trading volume of NFTs dropped from nearly $250 million to less than $7 million. This decrease isn’t necessarily a bad thing, since the amount of NFTs traded on both platforms was still above $20 billion in January.
According to CryptoSlam, 95% of all NFT transactions are wash sales. These transactions are done to win new tokens rather than pumping up the price of a nonfungible token. The marketplace profits from fees generated from these transactions. The total volume of NFT transactions in January, 2022, is over $274 million. While this number is lower than CryptoPunks and BAYC, it is still impressive and shows that these platforms are thriving.
OpenSea, WAX, and BitStamp are three NFT volume trading platforms. OpenSea, meanwhile, has fewer users per month. However, Magic Eden has a higher daily transaction volume. The platform has a lower threshold for sellers and creators. Despite the lower threshold for buyers and sellers, it does offer a wide range of digital assets and offers users a lot of options to start trading in NFTs.
Although LooksRare was one of the first NFT volume trading platforms, it has only recently become a leading platform. This site is similar to OpenSea, but was launched by anonymous co-founders. LooksRare aims to attract more NFT enthusiasts. The company has an incentive program, which offers tokens to active users. Incentives are rewarded for promoting the platform, so active users are rewarded with Looks.
Users
There are two main ways for investors to use NFTs: by sending them to other users or by selling them directly to themselves. However, in order to achieve the most profits, users should use a combination of both strategies. The majority of NFT trading volume is generated by users who sell to themselves. However, some investors will purchase NFTs from other users as well. In this case, the best option is to sell tokens to yourself.
In 2021, the total NFT trading volume was $24.9 billion, up from the previous year’s $95 million. The number of unique active wallets increased sevenfold from the previous year to 2.7 million in 2021. A significant proportion of these wallets were connected to a game involving NFTs. The two largest NFT marketplaces by volume and user count are Axie Infinity and OpenSea. As of January 20, the average price of an NFT was ranging from $6,900 to $1,300.
The majority of users of NFTs buy these coins through dedicated marketplaces. However, most of these exchanges do not custody their users’ NFTs. In contrast, OpenSea allows users to transfer NFTs between their wallets, similar to decentralized exchanges. Moreover, Dapper Labs takes care of custody for users. With the help of OpenSea, users can sell their NFTs on the exchange without the need of intermediaries.
The amount of NFTs sold each day fluctuates wildly. The last half of 2021 saw an increase in transactions, with around four thousand NFTs being bought and sold on most days. In January 2021, there were about 4,000 NFT sales. By January 2022, that number climbed to 258,000. Although the NFT market is still relatively young, it is already generating millions of dollars. However, there are several ways to earn more money with NFTs.