A snapshot of the mind-blowing NFT market
While non-fungible tokens remain a mystery to some, there are many flocking to this ‘trendy’ market, and when you look at the statistics, you’ll understand why it is attracting so much interest.
First, a brief recap on exactly what is a non-fungible token (NFT). NFTs are digital collectables holding unique data recorded on a blockchain, and cannot be copied, counterfeited or reproduced, meaning each NFT is uniquely identifiable. Because if it is unique, there can only be one in the world, boosting their scarcity, and value. NFTs are particularly associated with art, but that is not their only use. Currently, the game and metaverse environments for NFTs are rapidly increasing in value, but collectibles rule the sector.
A view of 2021
The first known NFT appeared in 2014, but it wasn’t until 2020 and 2021 that the sector really took off. In 2021 the market was worth $40 billion in 2021, according to the Financial Times.
According to a market tracker report from DappRadar NFT sales volumes totalled around $24.9 billion in 2021, a significant increase over $94.9 million in 2020.
The number of wallets trading NFTs rose in number as well, from around 545,000 in 2020 to about 28.6 million in 2021.
Some argue that Beeple’s Everyday artwork, which sold for around $69 million, is the most expensive piece globally. However, an NFT sold for $532 million in October 2021. This was a CryptoPunk NFT.
However, these eye-watering prices are exceptions. The data from several NFT marketplaces indicates that most sales come out at under $200.
The number of sales is increasing at a ferocious pace. According to NonFungible.com, the market had an incredible 13,118% growth between the first quarter of 2020 and 2021. And CryptoPunk NFTs can claim 5 of the top 20 biggest NFT sales of all time. Its biggest sale was for $11.8 million.
Who buys NFTs?
According to research from Morning Consult, millennials are the age group most likely to get involved with NFTs, and are three times more likely to buy and sell these assets than their Gen Z counterparts.
For many it is based on a love of ‘collecting’. Which also means that those offering NFT collectibles do extremely well. Men are twice as likely to identify as NFT collectors than women, although that demographic is reversed in Thailand and Venezuela, where women dominate the sector.
The countries showing the most interest in NFTs are
- the Philippines (32%)
- Thailand (27%)
- Malaysia (24%)
- the UAE (23%)
- Vietnam (17%)
But let’s not forget China, which is the country most interested in the opportunities NFTs offer, meanwhile 70% of Americans don’t even know what an NFT is.
Demand for NFT opportunities are growing all the time, mainly thanks to the flexibility of the new concept. People can transform everything from services to gig tickets into NFTs for their customers to purchase, collect, and re-sell. Furthermore, NFTs also provide an increase in the number of methods people have for getting involved with these kinds of assets. As a result, ‘fractional NFTs’ are becoming popular, because by fractionalizing them everyone can own a “piece” of art, Internet, or gaming history, rather than purchasing an entire asset. And this could be a real game changer!