Over $2 Billion was Spent on NFTs in Q1 and Q2 2022
- NFTs are one of the most popular crypto assets.
- NFTs have found a unique use case on the metaverse.
Non-fungible tokens (NFTs) were arguably the biggest trend in the blockchain market in 2021. However, many people believe NFTs have declined from their previous fame and are slowly fading away. But, on the contrary, a recent report showed that people are still interested in NFTs.
New market research by blockchain data firm Nansen shows that during the first half of 2022, crypto users spent 963,227 Ether (ETH), which is about $2.7 billion, minting NFTs on the Ethereum blockchain. The bulk of these activities took place on Opensea, the largest NFT marketplace.
The minting reportedly occurred on 1.088 million unique wallet addresses on Ethereum. NFTs were also minted on other blockchains, such as Avalanche and BNB Chain. About $77 million worth of NFTS were minted on Avalanche, while BNB Chain recorded about $107 million worth of NFTs. The NFTs minted on both BNB and Avalanche involved 263,800 unique wallet addresses.
On May 22, alone, 69 NFT collections went live, pushing the daily ETH minting volume above 120,000. According to the report, about 28,986 NFT collections were minted and exchanged on Ethereum during the first half of the year. Also, about 140 collections raised over 1,000 ETH. The top five NFT collections on Ethereum were Genesis Box, Pixelmon-Generation 1, Moonbirds, VeeFriends Series 2, and World of Women Galaxy. These collections collectively contributed to 8.4% of total minting.
The NFT market is still quite active even though transaction volume decreased from $3.9 billion to $964 million between February and March. Different people buy NFTs for different reasons. However, many people have been drawn to the profitability of the market.
On their part, NFTs continue to drive crypto adoption. These digital assets are useful in both the metaverse and the gaming industry. Most game projects reward their players with NFTs as in-game assets. Crypto experts believe that NFTs have become a part of the system and will not go extinct as many believe.
NFTs are designed as a means to safeguard digital files in a way that ensures ownership and establishes exclusivity. An NFT, like physical art, can be sold, but the artist has the option of keeping the copyright, giving it to the buyer, or limiting the number of secondary sales an owner is allowed.
In essence, NFTs can represent any type of digital asset, including real estate, videos, and jpegs of artwork. These files can be efficiently bought, sold, and traded by being turned into “tokens” and secured on a blockchain, which also reduces theft or scams.