Sales of non-fungible tokens (NFT) surged to an astounding number of $10.7 billion in the third quarter of 2021, more than eight times bigger than the previous quarter as the craze for crypto assets hit new highs.
Many people have been puzzled by the rising sales and sky-high prices for NFTs, which are things that do not exist in the real world, but the rapid rise shows no signs of stopping at all.
The total sales of NFT for the third quarter rose from $1.3 billion in the second quarter and $1.2 billion in the first quarter of 2021.
Sales volumes on OpenSea, the world’s biggest NFT platform, hit $3.4 billion last August. Even in September, when the world’s financial markets were collapsing, business remained strong.
Some Predict The Number Is Way Bigger Than $10 Billion
As people utilized cryptocurrencies to buy NFTs, cryptocurrency price rises during the COVID-19 outbreak have often been cited as a driving factor behind the NFT industry’s growth.
Certainly, estimates of the size of the NFT market vary depending on what factors are considered. Off-chain transactions, such as non-traditional art sales at auction houses, are often overlooked by data gathering.
Several estimates, which take various blockchains and “off-chain” transactions into consideration, predict the overall sales volume in 2021 will actually be $13.2 billion.
The most expensive known NFT sale happened in March 2021, when a digital collage sold at Christie’s auction house for $69.3 million. Even though no known NFT has ever come close to this amount, auction houses continue to conduct NFT auctions, with numerous items collecting millions of dollars.
The Huge Potential of NFT In Near Future
Despite increased sales and the involvement of celebrities and other investors, the number of NFT buyers remains quite small: there were only up to 270,000 active wallets selling NFTs on the ETH blockchain in the third quarter of 2021.
According to NonFungible.com, more than half of all NFTs sold in the third quarter were between the $101 and $1,000 price range, with those selling between $1,000 and $10,000 accounting for 20% of sales and those selling for less than $100 accounting for 17% of total sales.
One NFT brand that experienced particularly significant growth in the third quarter was Art Blocks, a US-based project that sells NFTs of algorithmically generated digital artworks.
On October 2, an Art Blocks NFT was sold for 2,100 ETH (that is about $6.9 million). Meanwhile, the average Art Blocks price in September rose to about $15,100 per NFT, up from $3,300 the previous month, showing the level of demand and product quality shown by the company.
NFTs linked to gaming have also grown significantly, with the blockchain-based game Axie Infinity leading the “play-to-earn” category with $776 million in its Q3 revenues.
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