According to new research from the blockchain analytics platform Chainalysis, spending on non-fungible tokens (NFTs) will continue to increase in 2022, reaching $37 billion spent on NFT exchanges this year.
Recent months have seen a rise in the popularity of non-traded funds (NFTs), and the firm’s most recent study indicates that activity in the NFT sector is stabilizing, with spending expected to reach an all-time high by the end of the year.
According to Chainalysis, collectors have already remitted over $37 billion to NFT marketplaces in 2022, putting them on course to exceed the $40 billion sent in 2021.
“Over the last two years, NFTs have been one of the most active and visible components of Web3,” stated Chainalysis’ Economist, Ethan McMahon.
“The current fascination in NFTs stems in great part from their application in buying and selling digital art. However, the potential of the technology is substantially greater, since it may be used to offer token holders ownership of not just digital data or media associated with the token, but also physical assets.”
The number of active buyers and sellers of NFTs has expanded in parallel with NFTs’ rising popularity. In Q1 2022, 950,000 unique addresses bought or sold an NFT, up from 627 thousand in Q4 2021. Every quarter from Q2 2020, the number of active NFT buyers and sellers has increased.
Since about 1 May 2022, 491,000 addresses transacted with NFTs in Q2 2022, keeping the NFT market on pace to retain its quarterly growth trend in participant numbers.
While certain regions were more active than others, Chainalysis revealed that internet traffic to non-fungible token (NFT) marketplaces in the Middle East peaked in the middle of 2021 and has since leveled down, accounting for around 5 percent of total global traffic.
“While there have been substantial monthly fluctuations, we see that NFT collectors with transaction volumes between $10,000 and $100,000 account for the bulk of activity.
Institutional investors — those who spend more than $100,000 — are aggressive, and in some weeks they account for the majority of trading activity, McMahon cautioned.
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