NFTs are even hotter than last year, and the amounts spent on them are almost the same

NFTs are even hotter than last year, and the amounts spent on them are almost the same

While the cryptocurrency market is in a deep crisis, it would seem that the NFT space would follow suit. Nothing could be further from the truth. Leaks from an upcoming Chainalysis report indicate that this one is in great shape.

NFT activity begins to stabilize

The year 2021 was a time when the NFT market exploded. However, it was subject to significant fluctuations, making it lack uniformity and consistency. According to Chainalysis data, this situation is starting to stabilize, and high volatility is no longer a hassle.

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-1-nft-value-over-time-1024x668.png

The most interesting thing, however, is that in 2022, collectors sent nearly $37 billion to the NFT markets. In 2021, the full-year amount closed at $40 billion. This means that the NFT space being just at the beginning of May, it has the power to break the records achieved so far any time soon. This is due to the shallower corrections of the market, which started January with great strength, weakened slightly in February and March, to return with a strong impulse already in April.

Unique addresses are on the rise

Looking at the quarterly figures for the number of unique addresses, we see a constantly growing statistic. It finds its beginning at the beginning of 2020 and so far, with each consecutive reading it points to a new record.

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-2-active-nft-wallets-1024x595.png

The entry into 2022 proved to be dynamic. In the first quarter, 950,000 addresses were registered that bought or sold any NFT. By comparison, the result for the fourth quarter of 2021 was 627,000 addresses. This is an impressive increase of over 50% in such a short period of time.

The number of active NFT collections in OpenSea is also excellent. It too is growing steadily and currently stands at over 4,500.

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-3-active-nft-collections-1024x506.png

Who buys the most NFTs?

Looking at the global data, the most interested NFT tokens market participants come from Central and South Asia. They are followed by residents of North America and the western part of Europe. 

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-4-nft-regional-1024x679.png

The leaders, of course, are retailers, whose transactions are classified as not exceeding $10,000. The share of collectors (values between $10,000 and $100,000) is also systematically increasing. Retailers are winning in terms of the number of transactions, but when summed up by value alone, collectors are leading by a wide margin.

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-5-share-of-transfers-1024x686.png

Institutional investors (values over $100,000) are also coming to the fore. Although the number of their transactions is clearly lower, their value, in some weeks, exceeds the results achieved by collectors. This happens when extremely popular NFTs are traded, such as Mutant Ape Yacht Club, which reached very high volumes at the end of October last year.

https://blog.chainalysis.com/wp-content/uploads/2022/05/chart-6-share-of-tx-vol-1024x676.png

Picture taken from: https://www.flickr.com/photos/30478819@N08/51061353732/ under Creative Commons license.

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

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