Non-fungible tokens were one of the trendiest issues in 2021, according to a new report from industry tracker NonFungible.com, and a new analysis from NFT traders shows how they profited on the trend.
The overall trading volume of NFTs for the year was roughly $18 billion, according to the analysis.
Because of mainstream media, celebrity, and social media influencer endorsements, as well as top business support, NFTs were all the rage.
Gauthier Zuppinger, co-founder of Nonfungible.com, claimed in an interview with CNBC:
“We’ve witnessed exponential growth over the last year.”
With only $82 million in trading volume in 2020, NFTs were still considered a niche commodity. Its popularity skyrocketed in the spring of 2021, when an auction of Beeple’s digital works brought in over $70 million.
Nonfungible tokens have grown into a thriving market that keeps growing year after year. Revenues, for example, surged from $41 million in 2018 to an amazing $2.5 billion in the first half of 2021 – a 60-fold rise in only three and a half years.
Even by 2020 standards, the increase is astounding. According to NonFungible.com, total sales of NFTs on Ethereum surpassed $340 million in 2020 and are already approaching $10 billion in 2021, a more than 25-fold rise.
Nonfungible.com also monitored cryptocurrency art sales at the world’s three major auction houses, with Christie’s taking $150 million, Sotheby’s taking $100 million, and Phillips taking $6.2 million.
While a small group of wealthy collectors paid excessive amounts for works by artists such as Beeple and Pak, a substantial network of crypto art purchasers has emerged.
Tokens in prominent digital art collections like CryptoPunks and Bored Ape Yacht Club have been sold for hundreds of thousands of dollars each.
According to the analysis, the nonfungible market’s 200-fold expansion was 100 times more than the percentage gain in the electric car sector over the same period.
Based on current statistics, Nonfungible.com gives one of the more cautious forecasts of NFT trading volume for 2021. Chainalysis estimates the space’s trading volume to be in the $40 billion range.
Zuppinger, on the other hand, claims that the distinction is entirely about methods.
Zuppinger maintained that his organization only conducted legitimate transactions and denied any involvement in wash trading or bot operations.
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