The non-fungible token (NFT) market is a tumultuous one. At one time, it is peaking and breaking all kinds of records; at the other, it’s either stagnating or falling. 2022 hasn’t been any exception. January kept pace with 2021’s growths that would dip in February only to start rising again in mid-April.
According to CryptoMonday.de, collectors sent $37B to NFT marketplaces in the first 4 months of 2022. That figure works out to nearly $308M in daily remittances, a 183% increase from last year’s figures. In 2021 collectors sent $40B, roughly $109M in average daily payments to those marketplaces.
Collectors sent $37B to NFT marketplaces in 2022, an 183% increase
These figures are great news for collectors and NFT marketplace owners alike. That’s because they show that there is a growing demand for non-tangible collectibles. There have been suggestions that the NFT space is waning following record-breaking growths in 2021. But these figures firmly dispel that notion.
NFTs and the shifting property views
CryptoMonday.de’s CEO Jonathan Merry attributes 2020’s growth to a change in how people view money and assets. He says, “We’re witnessing a huge shift in how people interact with money and property, and it’s not just happening online. One can now purchase an apartment in Berlin using an Ethereum-based token instead of traditional currency, which opens up all kinds of possibilities for future transactions!”
NFTs have been a big hit since their introduction in 2021. They owe their growth to the increasing popularity of crypto-collectibles. Again there’s been a surge in the number of NFTs available for trading. These two factors have expanded their user base and the number of transactions per user.
The latter is due to more people using the platforms for trading. Meanwhile, the former is likely due to better marketing and advertising by NFT providers. Collectors are increasingly turning to NFTs for financial transactions as the industry matures and expands. That’s indicative of a growing trust in the technology and users’ willingness to invest in them.
NFTs have a diverse global audience
NFTs have a diverse global fan base. Their popularity is highest in Central & Southern Asia. North America and Europe also have a high number of adopters. Although other regions are lagging, they too are witnessing tremendous adoptions.
Retail users make the majority of NFT transactions. These engage in transactions lower than $10K. Market data indicates that the number of retail users rose significantly from January to September 2021. But that seems to have tanked, indicating that their addition is keeping pace with the entry of more significant investors.
Institutional investors have been ramping up their interests in the space too. They have often accounted for most of the activity coinciding with large purchases in certain weeks. For example, in the week ending on 31 October 2021, they contributed up to 73% of all transfers. The sale of several NFTs on the Mutant Ape Yacht Club platform largely contributed to that success.
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