The non-fungible token (NFT) market is booming with more than 200 times the sales in 2021, and a new report highlights how NFT became exactly that market, according to a new report.
According to a report by Nonfungible.com, an NFT data company developed in partnership with BNP, NFT sales in 2021 increased by 21,000% to $ 17.6 billion (about 16 billion euros), or $ 82 million (74 million) in the previous year. Increased from (euro). L’Atelier, a research company owned by Paribas.
NFTs are unique digital assets and can be thought of as digital collections, including art, games, or other creative products recorded on the blockchain or digital ledger.
However, the market has been criticized as a bubble and the report shows that it is exactly the buyer’s market.
Last year, the number of buyers increased by almost 2,962% and the number of sellers increased by 3,669%.
The report also found that the previous year was 156 days, compared to an average of 48 days held in 2021 before the NFT was sold.
Most valuable NFT
Last year, a token representing a collage by digital artist Beeple was sold at auction house Christie’s for a record $ 69 million.
The most popular category of NFTs is collectibles, which accounted for $ 8.4 billion (€ 7.6 billion) in sales.
NFT collections such as the Bored Ape Yacht Club, a collection of 10,000 digital collections on the Ethereum blockchain, have also skyrocketed in popularity, with seven-day sales of $ 32.2 million (€ 28 million).
Gaming NFTs such as Axie Infinity are the second largest category, with sales of $ 5.2 billion (€ 4.7 billion).
However, Dan Kelly, CEO and co-founder of NonFungible.com, claims that the NFT space wasn’t a bubble.
“2021 was a great year. For many, the explosion surrounding the collectibles segment is considered a’bubble’,” he said.
“On the contrary, we believe that every community created in 2021 today has a digital identity. To start building a whole new Web3 industry, it is imperative that a strong community bring strong value. . “
The future of NFT
Web3, dubbed as the next step in the Internet, is a collective term for an online ecosystem that eliminates major intermediaries on the Internet. This includes technologies such as blockchain used in situations such as transaction recording.
The Metaverse (3D virtual world) also constitutes Web3 and is considered the future of NFTs.
According to a study by Nonfungible.com, sales of Digital Land and other projects in this space reached $ 514 million (€ 465 million) last year.
This was after Facebook rebranded to Meta last October and brands such as Nike took advantage of the Metaverse epidemic to create virtual clothing.
Last year was a milestone for NFTs in terms of transaction volume and value, but sales may not grow that much in 2022, but the underlying technology used by NFTs may grow. there is.
“By 2022, while the NFT market remains volatile, we expect better projects to begin to mature technically, socially and commercially,” said L’Atelier BNP Paribas, COO and Foresight. The bright Nadya Ivanova says.
“In addition to focusing on NFTs as a popular collectible, we now have real needs and opportunities to build infrastructure and utility services for this emerging market and asset class, including financial and risk management products.” She added.
“The NFT market has pushed the limits of its underlying technology very little.”