NFT sales hit $ 25 billion in 2021, but growth is showing signs of slowing

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LONDON, Jan 10 (Reuters) – From cartoon monkeys to video clips, sales of NFTs hit around $ 25 billion in 2021 as the speculative crypto asset gained popularity, data from market follower DappRadar shows, though there were signs of a slowdown in growth towards the end of the year.

The prices of some non-fungible tokens, crypto assets that represent a digital object such as a picture, a video, or even a land in virtual worlds, have risen so rapidly in the past year that speculators sometimes “flipped” them within days. have to make a profit. Continue reading

The art world was quick to make money as auction houses sold NFTs depicting simple cartoons for millions of dollars with no physical objects changing hands. An NFT artwork hit a record $ 69.3 million in a sale by Christie’s in March. Continue reading

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Meanwhile, some of the world’s leading brands, including Coca Cola and Gucci, have also sold NFTs. Continue reading

NFT’s sales volume was $ 24.9 billion in 2021, compared to just $ 94.9 million the year before, DappRadar said on Monday. DappRadar collects data across ten different blockchains that are used to record who owns the NFT.

NFT revenue increases to $ 11.6 billion in the fourth quarter

Estimated amounts vary by data provider based on what’s included. Transactions that take place “off-chain”, such as large NFT art sales at auction houses, are often not recorded by the data.

CryptoSlam, which also tracks multiple blockchains, said the grand total for 2021 was $ 18.3 billion. NonFungible.com, which only tracks the Ethereum blockchain, put sales in 2021 at $ 15.7 billion.

That means the money that will be spent on NFTs in 2021 is roughly the same as the amount pledged at COP26 to help countries get out of coal, or what the World Bank provided to buy and use them of COVID-19 vaccines. Continue reading

Sales peaked in August, then declined in September, October and November before picking up again in December, according to data from the largest NFT marketplace, OpenSea.

This does not seem to correlate with fluctuations in the price of cryptocurrencies, which are commonly used to purchase NFTs, as Bitcoin and Ether rose over the September through November period.

NFT sales on OpenSea

According to DappRadar, around 28.6 million wallets were traded with NFTs in 2021, compared to around 545,000 in 2020.

While some view NFTs as the future of ownership in the online world and see the purchase of NFTs as a vote of confidence in the development of “Web3” or the Metaverse, others are at a loss as to why so much money is being spent on items that are not physically available are exist. Continue reading

Only 10% of traders accounted for 85% of all NFT transactions, according to a study published in the journal Nature.

Weekly NFT Buyers – NonFungible.com

While the most expensive known NFT sale was $ 69.3 million, a common price range was between $ 100 and $ 1,000, NonFungible.com said. Continue reading

The prices of the most sought-after NFTs were very volatile. The average retail price of a CryptoPunk image rose from around $ 100,000 in July to nearly $ 500,000 in November. It had dropped to around $ 350,000 by December, according to CryptoSlam data. Continue reading

NFT price ranges

Collectible NFTs are the most popular category, followed by art, said NonFungible.com. Some of the most stunning NFT sales have been land in online Metaverse environments.

The virtual real estate investor Republic Realm bought a piece of land in the virtual world The Sandbox for $ 4.3 million in November.

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Collector NFTs are the most popular

Reporting from Elizabeth Howcroft; Editing by Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.

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