• Non-fungible Token Markets ‘Are in Phase of Dynamic, Unstoppable Growth,’ According to Q3 NFT Report

  • Since the beginning of 2021, non-fungible token (NFT) assets have seen significant demand, and third-quarter statistics show that key indicators have continued to rise. Nonfungible.com recently published its Q3 2021 NFT Quarterly Report, which shows that active wallets have increased, the number of NFT buyers has increased, and the number of sellers has increased faster than the number of buyers.

    In the third quarter, there is an increase in NFT activity.

    As NFT demand continues into the final months of the year, NFT market activity in Q3 2021 exceeded previously recorded quarterly metrics. Researchers from the web portal nonfungible.com published a study that covers the third quarter of 2021, and the data shows that most indicators are increasing. For example, the number of active wallets, or wallets that have interacted with an NFT smart contract, increased 102.52 percent from 203,719 in Q2 to 412,578 in Q3.

    NFT buyers increased by 166.73 percent in the third quarter, from 97,658 in the second quarter to 260,489 in the third. Sellers increased by 206.84 percent during the last quarter, rising from 40,056 to 122,910. The amount of US dollars exchanged for NFTs in Q2 was $782 million, but it increased dramatically in Q3 to $5.9 billion.

    “We saw another all-time high in terms of active wallets during the volume of USD traded all-time high at the end of August,” nonfungible.com’s Q3 report notes. “Within two months, the Weekly Volume, which was already nearly $91M per week, climbed to $1.674B.” The researchers at Nonfungible.com add:

    Following this peak, the weekly volume stabilizes at a level nearly three times higher than its previous level, at around $300M per week.

    In terms of loyalty, NFT patrons such as metaverse NFTs are the most devoted, followed by NFT collectibles. Sports, games, art, and utility NFTs trail collectibles in terms of NFT loyalty. Collectibles accounted for 76 percent of total sales, with art NFTs accounting for 9 percent. Sports would be the least popular NFT, accounting for only 1% of sales in the third quarter.

    According to the Q3 report, the ‘NFT Market Is Evolving Fast and at an Exponential Rate.’

    Cryptopunks and the Bored Ape Yacht Club are two of the most popular collectible NFT projects (BAYC). According to the study’s researchers, collectible NFTs’ “primary market share has more than doubled, to represent 75 percent of the entire collectibles market.” “This extremely high rate reflects the segment’s relative saturation: too many assets issued for too little resale, or at lower prices.”

    According to the researcher’s report, the market is evolving quickly and at a “exponential rate.” The liquidity has been unprecedented, but the market has also become “more speculative and volatile than ever before,” according to the Q3 NFT report. “The recent growth of the NFT industry has been almost unbelievable,” nonfungible.com’s study reveals. “In just a few short months, the billion-dollar mark was crossed in traded NFTs, followed by billion per quarter, and only then to be surpassed by billion per month.” The researchers go on to say:

    According to current data, the market is in a period of dynamic and unstoppable growth, with no shadows lurking in the corners. However, the reality is a little different, and we want to be clear that indicators such as traded volume in USD or the number of trades are not the best metrics for monitoring the market because they only reveal the tip of the iceberg.

    What's your reaction?