According to a recent Chainalysis research, 950,000 unique wallet addresses were sold and purchased as non-fungible tokens (NFTs) in the first quarter of 2022. According to the report, the number of such addresses sold and/or purchased as NFTs in the fourth quarter of 2021 was 627,000.
Overall, the number of active NFT buyers and sellers increased every quarter from Q2 2020 to Q2 2022, according to The Chainalysis State of Web3 Report.
Non-fungible tokens (NFTs) are digital objects whose units, unlike regular cryptocurrencies, are supposed to be unique. NFTs are Blockchain-based data storage devices that can be linked to files holding media such as photographs, movies, audio, or even actual items.
NFTs, which are frequently bought and sold on specialised exchanges, frequently grant the holder ownership of the data, material, or item to which the token is tied.
The NFT market had exponential growth in 2021, however this growth was not constant and has finally levelled down in 2022. NFT transaction volumes have also increased dramatically since the start of 2021, but at a variable rate. NFT activity typically varies month to month.
Collectors have sent over $37 billion to NFT markets as of May 1, 2022, on track to surpass the $40 billion sent in 2021.
Since late summer 2021, NFT transaction growth has been uneven, with activity generally maintaining steady, save for two significant jumps. These increases were most likely triggered by the release of the Mutant Ape Yacht Club collection and the launch of the LooksRare NFT marketplace.
However, following that increase, NFT transactions began to fall rapidly in mid-February, going from $3.9 billion in the week of February 13 to $964 million in the week of March 13 – the lowest weekly sum since the week of August 1, 2021.
The NFT market, on the other hand, started to recover in mid-April and is now approaching weekly levels seen earlier in the year, thanks to the recent launch of the Bored Ape Yacht Club’s metaverse effort.
The most populated regions are Central and South Asia, followed by North America and Western Europe.
Nonetheless, no single region has accounted for more than 40% of total online NFT traffic since the start of 2021.
Furthermore, the vast majority of NFT transactions are retail-sized, meaning they involve less than $10,000 in cryptocurrency. In some weeks, institutional investors account for the majority of activity.
However, as with the whole NFT market, the rise of institutional-sized NFT transfers has been inconsistent!