The mix of passion and fascination that NFTs produce has seen these markets grow surprisingly in recent months, despite the recent drop in the value of cryptocurrencies.
According to data from DappRadar, the commercial activity of the non-fungible tokens (NFT) has tripled so far this year, despite the recent drop in value in major stocks cryptocurrencies, of the market in recent weeks.
In her report qualified “What Crypto Crash? NFT Trading Volume Tripled”DappRadar notes that trading activity on NFT marketplaces has grown dramatically in 2021, tripling in value and reaching a trading volume of over $5 million per day. According to the report, amid the cryptocurrency crash, users “have been buying, trading, and selling an average of 85.787 NFTs, worth a total of $5,8 million per day.”
The NFT market has increased by 277% compared to the volume seen in January. However, this same volume, compared to the first days of May, before the fall of cryptocurrencies, shows a reduction of 61%, since at the beginning of the month the trading volume of NFTs exceeded 14 million dollars per day.
Still, DappRadar notes that there was a renewed boom in non-fungible tokens that sparked amid the crypto market crash this month, which saw major cryptocurrencies and industry tokens drop by 30% to 50%.
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NFT, resistant to the fall of cryptocurrencies
DappRadar notes that NFT markets are resilient to the fall of cryptocurrencies, as, for the month of January, daily sales within these markets barely exceeded 21.000 NFTs, while to date an average of 88.000 NFTs are sold per day. Most of the sales of these tokens occur in block chains , the Ethereum y Flow.
In its report, the data provider highlights that the surge in NFT token sales occurred during the decline in the value of cryptocurrencies. According to its data, about 82.370 NFTs were traded per day before the crash; after the crypto crash, the number of NFTs sold increased to 93.809 NFTs per day.
On the other hand, DappRadar points out that tokens related to NFT protocols and projects did not escape the collapse of cryptocurrencies, although the value of many, such as the MANA, AXS and WAX tokens, show a growth between 300% and 800% since January of this year.
Crypto collectibles, artworks and more
While artwork NFTs are generally the most valuable digital pieces within these markets, low-value crypto collectibles are also moving significant daily volume on NFTs. DappRadar notes that gaming cards, merchandise, and items, among others, are trading in large quantities and with values ranging from $2 and up.
Most of these transactions happen on alternative blockchains like Flow and Wax, which offer really affordable transaction fees for trading low-value NFTs, which is impossible on Ethereum due to its high gas costs.
On the other hand, digital land and artwork sell for large sums, ranging from a few hundred dollars to several thousand dollars. For example, en Axie Infinity, a digital game that runs on a sidechain called Ronin, records a total of 29.514 sales with a cash volume of $6,69 million, in the last week. The average price of NFT tokens traded on this project is $226.
Utility and reinvention with NFTs
Virtual worlds, blockchain games and digital art are some of the sectors where NFTs are present. However, the importance that these tokens have gained in recent months has led them to become a fundamental part of the digital world.
NFT tokens are a growing trend, which are increasingly combined with the digital products we already know, inspiring new ideas and reinventing the ecosystem. For example, in the metaverses, those spaces or digital universes where users have a series of tools at their disposal to develop their own worlds, NFTs allow the creation of real digital economies.
Ownership of NFTs is recorded on the blockchain, granting users ownership of a particular item or product. In the Philippines, an entire family recounted how they spend their daily time playing on Axie Infinity to earn up to $400 a month, which is much more than the country's current monthly minimum wage.
DeFi and NFT
Likewise, several protocols have been integrating NFTs into ecosystems. DeFi, to enhance the value opportunities that develop in these decentralized financial spaces. aavegotchi y Drops are DeFi protocols that seek to integrate NFTs to offer new products to their users. In the case of Drops, this protocol wants allowing users to fractionalize their NFTs to request and obtain a decentralized loan, locking their digital assets, and extracting additional value from their non-fungible tokens.
VulcanVerse, a digital game, wants to offer higher returns to its users by allowing them to bet and “grow” NFTs and tokens as if they were “seeds”. This digital game wants to gamify “NFT farming” and offer higher returns to its users.
As we can see, the utility of NFTs today, compared to a few years ago, has developed, allowing the creation and development of many more innovative and valuable products on the market.
At press time, the market capitalization of NFTs exceeds 16.200 million.
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