Nearly 81% of NFT tokens currently in existence on Ethereum are concentrated in the hands of a few institutional ETH addresses, Moonstream data indicates.
A new study by the analysis firm blockchain open source Moonstream, indicates that 80,9% of the non-fungible tokens o NFT of the standard ERC-721 that exist in the market, are concentrated in a few directions of Ethereum. According to study, which analyzed nearly 7.000.000 NFT transactions made on Ethereum between the months of April and September of this year, almost all of the existing NFTs are in the hands of 16,7% of the active addresses within this blockchain network; most of these are institutional.
It may interest you: Top 5 of the most valued NFTs that generated the most profits in 2021
NFTs concentrated on Ethereum
To conduct its study, Moonstream developed an open-source analytics tool for the NFT market. The results indicate that a large portion of ETH addresses controlling NFTs belong to cryptocurrency platforms and exchanges. Many of these concentrate hundreds or thousands of NFTs at a time.
However, it should be clarified that the study applied by the firm analyzed only the non-fungible tokens existing in the Ethereum blockchain, currently the leading network for the development of smart contracts, decentralized applications (DApps) and non-fungible tokens. Therefore, the firm's results do not reflect the full reality of this growing market. Other blockchains such as Solana, Flow y Wax, have gained massive popularity in the crypto industry over the past year, becoming some of the favorites of artists and content creators for minting and trading NFTs in a scalable, efficient, and sustainable way.
A free and open market
While the numbers may make it seem like the non-fungible token market is dominated by institutional investors, Moonstream clarifies that there are no strong barriers to entry for smaller investors, so NFTs remain accessible digital assets for all types of interested investors and users.
NFTs are one of the biggest innovations brought about by blockchain technology. These blockchain-based tokens have become a key element in the construction and development of digital identity and the new digital economies that emerge within blockchain Play to Earn games and metaverses.
More than $18.000 billion in sales
The explosive growth of NFTs in 2021 has led this market to exceed $18.000 billion in sales volume.
According to data From the monitoring platforms DappRadar and NonFungible, the NFT collections Axie Infinity, Bored Ape Yacht Club, CryptoPunks, Art Block and The Sandbox accumulate the highest sales volume within this market. The volume traded on Axie Infinity through NFTs exceeds 3.800 million At the time of this writing, other digital collections such as BAYC and CryptoPunks show a sales volume between $1.600 and $1.800 billion. Art Block and The Sandbox, whose popularity has increased exponentially in recent months, exceed $1.600 billion in sales combined. In total, these NFT collections celebrated 10,4 million sales this 2021.
Continue reading: DeFi, NFTs and Gaming transform 61 cryptocurrency companies into unicorns in 2021
