NFT sales reached $17 billion in 2021, according to a report by Nonfongible.com and BNP Paribas’ L’Atelier. This represents a growth of 21,000% compared to 2020. But will the future be as bright?
The NFT are trendingand everyone can see that. These assets offering the ownership of digital elements based on the Blockchain are snapped up at exorbitant prices and are multiplying on exchange platforms.
Recently, a token depicting a collage by digital artist Beeple sold for $69 million at auction. Likewise, collections like the Bored Ape Yacht Club are unleashing the lust of world stars like Justin Bieber, Eminem or Snoop Dogg.
Nevertheless, the success of this phenomenon can be difficult to measure and quantify. Today, a report by Nonfungible.com in collaboration with L’Atelier de BNP Paribas reveals that token sales reached a volume of $17.6 billion in 2021. This represents a rise of 21,000% compared to $82 million generated in 2020.
In total, Nonfungible.com counted 2.5 million crypto wallets owned by people holding or trading NFTs in 2021. There were only 89,000 in 2020. The number of buyers fell from 75,000 to 2.3 million.
Also, investors have been more successful in getting rich from NFTs. They generated a total of $5.4 billion in profits in 2021, and more than 470 portfolios exceeded $1 million in profits.
The most popular NFT category is that of collectibles, representing 8.4 billion dollars in sales. The second hottest category is NFT games, like Axie Infinity or the disastrous Pixelmon, which garnered $5.2 billion in sales.
Metaverse fashion exploded at the end of 2021
According to Gauthier Zuppinger, co-founder of Nonfungible.com, the past year has been marked by exponential growth. Some experts even estimate a much higher volume of transactions. Thereby, Chainalysis advances a sum exceeding 40 billion of dollars.
This difference is related to the methodology employee. For its part, Nonfungible.com does not take into account transactions involving robots or “wash trading”: a practice of simultaneously buying and selling an asset to artificially increase market activity.
At the same time, the end of the year was marked by a transition to the metaverse. The digital land sales and other projects related to the virtual world reached $514 million. The hype came to a head when Facebook rebranded to Meta, and when Nike bought virtual shoe designer RTFKT.
Despite this massive growth, NFTs are also subject to criticism. In the eyes of some, this market arouses predatory behavior. Investors are often encouraged to speculate on prices, and the money raised is often used for money laundering or other dishonest activity.
What’s going to happen? Not fungible does not expect the overall value NFT transactions increase massively in 2022. Volumes averaged around $687 million per week, up from $620 million in Q4 2021.
According to Zuppinger, we now observe fewer people, fewer buyers and less sales. The global community may have shrunk due to speculation and a loss of interest in collectibles. Nevertheless, the overall market is still very high and the value of certain assets has continued to rise.
More large companies and of financial institutions should start in the market, while the most speculative assets will begin to disappear…