Although the recent bullish rally of Bitcoin and cryptocurrencies is stealing the attention of investors in the crypto industry, NFTs promise to continue growing, as their market is just beginning to take off.
In short, it seems that the market for non-fungible tokens o NFT It was nothing more than the bubble that many said would burst soon. However, the increase that this market has had since mid-2020, and in the first quarter of this 2021, shows that in reality it is an industry that is just beginning to take off, and one that still has a lot to offer.
Data from the NFT analytics platform, Nonfungible, they indicate at first glance that the NFT token market collapsed, and that the average price of these assets in blockchain began to plummet.
Source: Nonfungible
However, the platform presented a report where its analysts conclude that, in reality, no collapse has occurred within this market. According to Nonfungible data, the average price of NFT sales is currently at $1.500.
Although this price may seem small compared to the price seen in mid-February, when average sales reached $4.000, $1.500 is still a significant price for the industry, especially when compared to sales at the beginning of October last year, when they did not exceed $150.
Nonfungible analysts point out that the drop in prices since February can be seen as a market correction; or better yet, as a stabilization of its prices, after experiencing a period of speculation and high demand. Also, it can be said that the drop in prices in average NFT sales may be influenced by the frenzy of Bitcoin and cryptocurrencies, which are in the midst of a bullish rally, marking new historical highs, and capturing the attention of almost all investors in the market.
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Interest in NFTs has not disappeared yet
NBA Top Shot was and remains the leading platform in the NFT market. Until recently, this platform was celebrating sales of more than $550 million per month; while in the last 30 days, sales barely managed to reach $XNUMX. 144 millionHowever, Nonfungible analysts again point out that this does not mean a market collapse, but rather a lag or delay in interest from new buyers following record sales.
On the other hand, the analysis platform points out that the volume of operations in the NFT market continues to be at record levels, compared to data from the previous quarter.
According to the data, trading volume is around 40.000 transactions per week, doubling the previous figures. The drop in this metric is reflected when compared to the peak in mid-March, when trading volume reached a figure of almost 80.000 transactions per week.
An uncertain future, but growth is gradual
Although NBA Top Shot is the leading platform in sales volume, the crypto-collectibles project Cryptopunks is the protagonist in terms of unit value. The NFT tokens of this project, created on the blockchain of Ethereum, reached an average value of $95.000 in February. At the beginning of the year, the price of a CryptoPunk was around $2.500, while at the beginning of this month, its value averaged around $45.000.
Source: Nonfungible
In the case of The HashMask and SuperRare NFTs, Nonfungible highlights that their growth has occurred more gradually and organically compared to other projects in the industry. The average value of these projects' NFTs was almost 10 times their price at the beginning of the year.
Finally, the platform's analysts conclude that despite the corrections, the NFT market is still standing and may show some drastic changes in the coming weeks.
Although the future of the NFT market is uncertain, the above metrics show what appears to be more of a price stabilization than a decline; furthermore, the arrival of new rare and exclusive tokens can fuel bullish sentiment among investors and collectors, and make the market reach new records. Also, the new use cases that are being given to this class of tokens can lead to new horizons and, therefore, to new prices.
To date, the most expensive crypto art collection within the non-fungible token industry has been the “Everydays: the First 5000 Days” de Beeple's, which sold for nearly $70 million. The record for individual NFT sales is held by Punk #7804, sold for $7,5 million.
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