According to data from market tracker DappRadar, NFT sales volume rose to $10.7 billion (about Rs 79,820 crore) in the third quarter of 2021, eight times more than the previous quarter, as the craze for crypto assets hit new highs. has gone.
NFTs use blockchain to record the ownership of digital objects such as images, videos, collectibles and even land in virtual worlds.
Rising sales and steep prices on NFTs – commodities that don’t exist physically – have baffled many but the explosive growth shows no sign of easing.
DappRadar said the third quarter figures were up from $1.3 billion (approximately Rs 9.680 crore) in Q2 and $1.2 billion (approximately Rs 8,935 crore) in Q1.
On OpenSea, the largest NFT marketplace, sales volume reached $3.4 billion (approximately Rs 25,320 crore) in August. Activity remained strong in September as global stock markets faltered.
Cryptocurrency price gains during the COVID-19 pandemic are often cited as a driver behind the growth of the NFT market – as people use cryptocurrencies to buy NFTs – but enthusiasts point out that Crypto assets have value independently of market conditions.
Of course, estimates of the size of the NFT market vary depending on the inclusion. Transactions that occur “off-chain”, such as NFT art sales at auction houses, are often not captured by the data.
DappRadar’s numbers, which include multiple blockchain and “off-chain” transactions, put a total 2021 sales volume of $13.2 billion ((about Rs 98,285 crore). Another market tracker, CryptoSlam, includes “off-chain” sales. No, this figure says $9.6 billion (about Rs 71,480 crore).
Meanwhile, NonFungible.com, which only tracks NFTs on the Ethereum blockchain, puts the 2021 total volume at $7 billion (about Rs 52,110 crore). Ether price in India is Rs. 2.6 lakhs as of 1:30 pm IST on October 5.
The most expensive known NFT sale was a digital collage sold at Christie’s in March for $69.3 million (about Rs 515 crore). Since then, no known NFTs have come close to this price, but auction houses still sell NFTs, often fetching millions.
However, despite rising sales and celebrities and other investors jumping on the trend, the number of NFT buyers remains relatively small: There were just 265,927 active wallets trading NFTs on the Ethereum blockchain in the third quarter, NonFungible.com said.
More than half of the NFTs sold in Q3 were in the $101 (approximately Rs. NonFungible.com said that a percentage of sales, and 17 percent, received less than $100 (about Rs 7,440).
One NFT brand to see particularly high growth in Q3 was Art Blox, a US-based project that sells NFTs of algorithmically-generated digital artworks.
On Saturday, an Art Blocks NFT sold for 2,100 Ether (about Rs 51 crore at the time). According to CryptoSlam, the average art block price has dropped to around $15,100 per NFT in September, up from $3,300 in July.
There has also been a rise in gaming-related NFTs, with blockchain-based game Axie Infinity leading the “play-to-earn” space with revenues of $776 million (about Rs 5,780 crore), DappRadar said.
© Thomson Reuters 2021
Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.