Home News Retail buyers made up more than 80% of NFT transactions in 2021

Retail buyers made up more than 80% of NFT transactions in 2021


According to Chainalysis, more than 80% of all nonfungible token (NFT) transactions were valued at less than $10,000 in 2021, and they were classified as “retail” in recent research.

“The 2021 NFT Market Explained,” a whitepaper from blockchain analytics firm Chainalysis published on Dec. 6, examined NFT transaction trends for the year 2021. Between January and October 2021, Chainalysis researchers looked at on-chain data.

While retail transactions accounted for more than 80% of all NFT transactions on any given day in 2021, collector-sized transactions increased from 6% in March to 19% by October 31, showing a rise in larger collectors as the year went on.

Institutional trades accounted for less than 1% of all transfers but 26% of total trading activity over time, according to the report.

A retail transaction is one that valued at less than $10,000, whereas a collector transaction is one that is worth between $10,000 and $100,000. According to the report, an institutional-sized transaction is one that is valued at more than $100,000.

The graph below depicts the year-long dominance of retail sales from January to October, with a clear increase in collector-sized transactions beginning in September.

NFT transaction size share – Chainalysis

Retail accounted for the majority of total transfers. Whereas collectors and institutions have accounted for the majority of NFT dollar-denominated transfer activity since March. Collector-sized transactions accounted for 63% of the volume. While institution-sized transactions accounted for 26%. Implying that retail transfers accounted for 11% of the total volume throughout the study period.

NFT transfer volume share – Chainalysis

Fifth of NFT total sales last week came from metaverse land purchases at The Sandbox

The researchers compared the NFT market to the broader bitcoin market. Where retail purchases account for a far smaller percentage of all transactions.

Several variables, including the earning possibilities associated with NFTs, boosted cryptocurrency adoption until 2021. According to research, the record $17.7 billion in NFT sales predicted through 2021 demonstrates this.

NFT sales totalled $300 million in the last week. With about a fifth of that coming from metaverse land purchases at The Sandbox.

According to Chainalysis, at least $26.9 billion in bitcoin delivered to ERC-721 and ERC-1155 (the industry’s most popular Ethereum standards for NFTs) contracts through 2021.

Whitelisting best for profits

Despite the large sums of money spent on NFTs, according to the research, “just 28.5% of NFTs purchased during minting and later sold on the platform result in a profit”.

To enhance your chances of profiting from a newly-minted NFT, Chainalysis recommends getting whitelisted. Users who made the whitelist on an OpenSea minting event profited 75.7% of the time. Compared to 20.8% of those who did so without being whitelisted.

NFTs purchased on the secondary market after minting. On the other hand, it “leads to profit 65.1% of the time”, according to the report. Implying that if one cannot make the whitelist, it is better to wait for an NFT collection to hit the secondary market rather than participate in a minting event.

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