The slowdown in the electronic money market did not affect the NFTs that continue to ‘blow’, studies show

A study conducted by Chainalysis and co-sponsored by Cointelegraph, has revealed that investments in NFTs continue to ‘explode’ in the crypto currency market. According to the material, last year, collectors have sent more than $ 40 billion of encryption for smart contracts associated with NFT collections and markets.

This year, however, another $ 30 billion secret currency has already been sent to NFT-related smart contracts by April 15th. In addition, research shows that the number of active NFT collections has increased almost weekly since March 2021 and is currently over 4,000.

The study also revealed that a large number of NFT transactions are retail, which means less than $ 10,000 of the hidden currency in each transaction.

At the same time, institutional transfers accounted for 33% of all transactions from the week of October 31, 2021, increased to 73%, due to the purchase of several NFTs from the Mutant Ape Yacht Club collection.

Chainalysis notes that although North America and Western Europe were the first to adopt NFTs in large numbers, as web traffic suggests, there is currently no area that dominates this market, as they all account for less than 40% of international traffic.

The NFT market continues to grow

Another TradingPedia study showed that the NFT market saw a significant increase in active traders (77% MoM) and trading volume (439% MoM) in January and strengthened in Q2 2022.

According to the study, NFT traders grew by 50% quarterly, a record number of trades despite a historic decline in the crypto currency market. Analysis of blockchain data by researchers at TradingPedia shows that the recent decline in the crypto currency market did not affect the popularity and business of NFT.

To this end, the company conducted a question on Dune Analytics to list all NFT trades, and after that, added exclusive buyers and sellers, ranking them quarterly, indicating that the last two quarters saw a QoQ sales growth of 54.% and 50%, respectively.

“Looking at the latest data from the current Q2 2022, we see that it started with an increase in the number of NFT daily traders in April, an average of 58K per day. This is 12% higher than the average 52K in March 2022. In the first 10 days of May, we see a return to the average of March despite the continued decline in cryptocurrency markets, “the company pointed out.

Also according to Tradingpedia, January 2022, the average daily NFT trading increased by 439% MoM, while the daily average of working traders increased by 77% MoM.

“At first glance, this does not make sense for crypto markets heading south at a faster pace. This, however, is quite unexpected. With markets stagnating or declining, many crypto investors are trying alternatives to get higher rates.” revenues they are accustomed to in the cattle market, “the company’s study said.

In addition, Brian McColl, an analyst at TradingPedia, stated that the prices of non-fiction tokens are often listed in the cryptocurrency issued. As the market shrinks, this reduces the full value of the dollar and attracts new users to buy their first NFT.

To show the rise and strengthening of the NFT market in 2022, the company combined two sets of data into a record of similar events: the number of unique traders (buyers and sellers) per day and the amount sold that day in USD.

“It seems clear that 2022 will open a new NFT page with a number of recordings and recordings of active traders in January. The volume varies widely, but this can be attributed to specific versions of the NFT collection that add interest. The trend seems to be stable despite declining now on the crypto currency market. ” added Brian McCol.

Where are the NFT investors?

In another study, BrokerChooser, analyzed NFT-related research in more than 400 capitals around the world to reveal the cities most sought after by NFT collectors. The study found that New York City is the most popular NFT city, receiving more searches than any other city in the study combined.

On the other side of the scale, Detroit, USA, was one of the most sought after cities by NFT investors, ranking 50th. In front of them are Huston, also in the United States and Melbourne in Australia, all with 100 searches.

“The NFTs have undoubtedly provided an opportunity to make a significant investment, for example The Board Yacht Ape Club, which was priced at $ 189 and now sells for about $ 2.9 million. However, one of the biggest problems in the NFT environment right now is declining demand interest rates after impulses cool down while supply is still high. But this could be a common volatility in the new and evolving market, “said Tamás Müller, an expert at BrokerChooser.

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