Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
While the NFT craze has been on a declining trend, the buyers have still outnumbered the sellers by a strong margin. Several NFT marketplaces have grown in size considerably over the last few months.
The non-fungible token market (NFT) has created a solid buzz in the crypto space during the first half of 2021. NFTs are basically blockchain-based tokens that car represents unique digital assets and not replicable.
As per the latest Reuters report, the NFT market has clocked over $2.5 billion in sales volume during the first half of 2021. This is nearly 20x than the $13.7 million sales registered during the first half of 2020. The report further notes that a majority of the NFT sales volumes have comes in Q2 2021.
Since March 2021, buyers have totaled 10,000-20,000 per week outnumbering the sellers at the same time, as per data on NonFungible.com. This data is from the aggregation of NFT transactions on the Ethereum blockchain network.
Many NFT enthusiasts gather these tokens as collectible. While others treat it as an investment vehicle speculating on the future price rise. Total sales volumes estimates by different data aggregators could vary depending on their survey scope. However, a majority of the platform track “on-chain” sales i.e. transactions that occur on the blockchain network.
The Rise of NFT Platforms and Market in General
With the growing demand for NFTs, there’s a simultaneous surge in the number of NFT marketplaces. These marketplaces allow creative individuals to leverage the NFT market growth by launching and selling their own NFTs. In June, monthly sales volumes of a popular NFT marketplace OpenSea reached a record high.
Rarible, SuperRare, Enjin are some of the other popular destinations for selling NFTs. Moreover, popular global auction houses like Christie’s and Sotheby’s have joined the NFT craze. Over the last few months, these auction houses have sold NFTs worth millions of dollars. As Reuters reports:
“In March, a digital image sold for a record US$69.3 million at Christie’s as an NFT. No NFT sale has come close since. The second most expensive known NFT sale was a “CryptoPunk” which fetched US$11.8 million at Sotheby’s”.
Some of the big market players have gone to launch their own NFTs. For example, crypto exchange Binance launched its native NFT marketplace last month in June end. The Binance NFT marketplace went live on June 24, featuring iconic collections from popular artists like Andy Warhol and Salvador Dali.
Similarly, the US National Basketball Association has announced its native TopShot marketplace. It allows NBA fans to trade NFTs featuring video highlights. This marketplace has conducted millions of dollars in sales so far. The Bored Ape Yacht Club hat has 10,000 unique digital ape NFTs is much popular.