NFT sales reach $ 10.7 billion in third quarter as crypto asset frenzy reaches new highs

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Soaring sales and high prices for NFTs – items that don’t exist physically – have baffled many, but the explosive growth shows no signs of slowing down.

Non-fungible token (NFT) sales volumes reached $ 10.7 billion in the third quarter of 2021, more than eight times the previous quarter, according to data from market tracker DappRadar, as the frenzy for crypto assets hit new highs.

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NFTs use the blockchain to register ownership of digital objects such as pictures, videos, collectibles and even land in virtual worlds.

Soaring sales and high prices for NFTs – items that don’t exist physically – have baffled many, but the explosive growth shows no signs of slowing down.

The third quarter figure was up from $ 1.3 billion in the second quarter and $ 1.2 billion in the first quarter, DappRadar said.

In the largest NFT market, OpenSea, sales volumes reached $ 3.4 billion in August. Activity remained strong even in September when global equity markets weakened.

Cryptocurrency price gains during the COVID-19 pandemic are often cited as a driver of the growth of the NFT market – because people use cryptocurrencies to buy NFTs – but enthusiasts say the assets crypto have value regardless of market conditions.

Read also: Explanation | NFTs are hot. So what are they?

Granted, estimates of the size of the NFT market vary depending on what is included. Transactions that take place “off-chain”, such as NFT art sales at auction houses, are often not captured by the data.

Figures from DappRadar, which include several blockchains and “off-chain” transactions, put the total sales volume for 2021 at $ 13.2 billion. Another market tracker, CryptoSlam, which excludes “off-chain” sales, says the figure is $ 9.6 billion.

Meanwhile, NonFungible.com, which tracks NFTs on the ethereum blockchain only, estimates the total volume of 2021 at $ 7 billion.

The most expensive known NFT sale was a digital collage that sold at Christie’s for $ 69.3 million in March. Since then, no known NFTs have come close to this price, but auction houses still hold sales of NFTs, often reaching millions.

However, despite the growth in sales and celebrities and other investors jumping on trend, the number of NFT buyers remains relatively low: there were only 265,927 active portfolios trading NFTs on the ethereum blockchain in the third quarter. , NonFungible.com said.

More than half of NFTs sold in the third quarter were $ 101 to $ 1,000, while those in the $ 1,001 to $ 10,000 range accounted for 20% of sales and 17% brought in less than $ 100, said NonFungible.com.

Read also: NFT sales rise as speculators pile up, skeptics see bubble

One NFT brand that saw particularly strong growth in the third quarter was Art Blocks, a US-based project that sells NFTs of algorithm-generated digital artwork.

On Saturday, an NFT Art Blocks sold for 2,100 ethers (about $ 6.9 million at the time). Average art block prices jumped to around $ 15,100 per NFT in September, from $ 3,300 in July, according to CryptoSlam.

Gaming-related NFTs have also increased, with blockchain-based game Axie Infinity leading the “play-to-earn” industry with $ 776 million in third-quarter revenue, DappRadar said.


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