Sales of non-fungible tokens (NFT) in the first half of 2021 reached a record $ 2.5 billion, according to analytics service DappRadar. In 2020, NFT sales amounted to $ 95 million. It is 26 times less than in the first half of this year. From 10 thousand to 20 thousand new NFT-tokens are sold weekly on the Ethereum blockchain, according to the data of the NonFungible service.
A surge in interest in non-fungible tokens came in March. When artist Beeple sold his painting as NFT at Christie’s auction for $ 69.3 million.
In March, only works of art in the form of NFT-tokens were sold for $ 200 million. Which is more than the sales of non-fungible tokens for the whole of 2020. In February of this year, NFT sales amounted to $ 91 million, and in January – $ 12 million. Thus, non-fungible tokens have become popular in the art world.
Notable NFT sales
Recently, the social network Twitter released 140 non-fungible tokens (NFT) on Ethereum, which it distributed to its users for free. Most of the new owners put them up for sale immediately.
In addition, at the beginning of the month, Sotheby’s auction house completed an auction for the sale of a non-fungible token (NFT) containing the original source code for the technical underpinnings of the Internet. The developer received $ 5.4 million. Apparently, the excitement around the sector has not subsided. Since March, the number of NFT buyers each week continues to exceed the number of sellers.
Monthly sales on one of the largest marketplaces, NFT OpenSea, hit a record high in June. However, NFT data is difficult to interpret as each analytics platform has its own tracking metrics. Sales volumes according to NonFungible data in the first half of 2021 are almost half that according to DappRadar data, in part because the first service excludes non-fungible tokens used in decentralized finance (DeFi).
Risks associated with non-fungible tokens
Earlier, the CEO of Psyops Capital called the correction in the NFT market a “quiet crash”. He said that due to the low liquidity of the market, sellers find it difficult to assess the mood of buyers. So the price of their asset may unexpectedly turn out to be several times less than the acquisition cost.
Although at the moment, even with a fall in the cryptocurrency market, the demand for NFT continues to be quite high.
The price of non-fungible tokens directly depends on the demand for them and on the number of buyers who want to buy these works. And although traders and investors are gradually leaving the cryptocurrency market, there are still a lot of people who want to buy NFT.
Data from DappRadar and NonFungible indicate that despite the fall in the cryptocurrency market, interest in NFT and digital art is still high and people continue to buy non-fungible tokens on specialized platforms.
The reasons for the demand for NFT are different. Some view them as collectibles, while others – as investments in order to speculate on price increases.