In the first quarter of 2022, 950,000 unique wallet addresses were sold and purchased as non-fungible tokens (NFT), according to a recent Chainalysis report. The number of such addresses sold and / or bought as NFTs in the fourth quarter of 2021 was 627,000, the report states.
In total, the number of active NFT buyers and sellers increased every quarter from the second quarter of 2020 and ends in the second quarter of 2022, the report states, The Chainalysis State of Web3 Report on.
Non-fungible tokens (NFTs) are digital objects whose devices are designed to be unique, as opposed to traditional cryptocurrencies. NFTs store data on the Blockchain and can be associated with files that contain media, such as images, videos, audio, or even physical objects.
NFTs, which are routinely bought and sold on specialized marketplaces, often offer the holder ownership of the data, material or item to which the token is linked. The NFT market saw explosive growth in 2021, but this growth has not been consistent and has leveled off now in 2022. NFT transaction volumes have also increased significantly since the beginning of 2021, although this increase is volatile. The NFT activity usually fluctuates every month.
As of May 1, 2022, collectors have shipped over $ 37 billion to NFT markets in 2022, in line with the $ 40 billion shipped in 2021.
The growth in NFT transactions has been unpredictable since the late summer of 2021, with activity mainly maintained, except for two large increases. These increases were most likely caused by the debut of the Mutant Ape Yacht Club collection and the opening of the LooksRare NFT marketplace.
After this increase, however, NFT transactions began to decline sharply in mid-February, falling from $ 3.9 billion in the week of February 13 to $ 964 million in the week of March 13 – the lowest weekly amount since the week of August 1, 2021.
The NFT market, on the other hand, began to revive in mid-April and is currently approaching the weekly volumes seen earlier in the year, due to the recent launch of the Bored Ape Yacht Club’s metaverse initiative.
Who uses NFTs?
Central and South Asia happen to be the most populous regions, followed by North America and Western Europe. That said, no single region has accounted for more than 40 percent of total online NFT traffic since the beginning of 2021.
In addition, the vast majority of NFT transactions are in retail size, which means less than $ 10,000 in cryptocurrency. Institutional investors make up the majority of the activity in some weeks. However, as is the case with the NFT market as a whole, the growth of NFT transfers by institution size has not been consistent.
As of 17 April 2022, institutional NFT activity has not yet reached the levels it did in the winter of 2021.
A period of reduced institutional activity roughly coincides with what appears to be an overall decline in interest in NFT. Between the end of November and the middle of February, institutional purchases grew every week, reaching 1,889 transactions during the week beginning 13 February.
