NFTs appear to be here to stay.
The cryptocurrency ecosystem is expanding at a breakneck pace, bringing with it a slew of linked markets. Such is the situation with NFTs, which have witnessed a massive increase in sales volume over the last year, rising from $13.7 million in the first half of 2020 to $2.5 billion in 2021.
As previously said, NFT stands for Non-Fungible Token, which is a tradable piece of digital art, video, or in-game item that has been verified by a blockchain to verify its uniqueness. NFTs are becoming increasingly popular, with some fetching millions of dollars, such as Beeple’s “Everydays: The First 5000 Days” for $69 million and Twitter’s first tweet fetching over $3 million.
Just last week, we had another multi-million sale thanks to Sir Tim Berners-Lee, which amassed over $5.4 million for the source code of the World Wide Web he wrote.
All these sales have greatly helped the NFT sales volume, almost reaching $2.5 billion during the first half of 2021 as reported by DappRadar. However, NonFungible is reporting $1.3 billion during this period, but it doesn’t consider the $8 billion of “DeFi” (Decentralized Finance) NFTs.
DappRadar and NonFungible both exclusively track transactions that take place on the blockchain. Given that some of these multi-million dollar purchases are made partially on the blockchain and subsequently added to it, these statistics might rise much higher.
NFTs are mainly sold in marketplaces. Rarible and OpenSea are open marketplaces featuring a wide variety of NFTs from multiple collections. Other marketplaces such as NBA Top Shot and Axie Infinity Marketplace only sell a collection of NFTs, but can still gather hundreds of thousands of traders.
Some regard NFTs as a fraud, while others regard them as a cultural phenomenon, while many regard them as an investment opportunity akin to bitcoin. Regardless, it appears like NFTs are here to stay for the time being.
Masthead by Vladimir Kazakov