According to the very prestigious Collins English Dictionary, the word of the year 2021 is none other than “NFT”. This distinction illustrates the incredible growth of this blockchain-based industry over the past year. Remember that this term means non-fungible token. It is a unique cryptographic token that contains a contract for validating the authenticity of an image, video or audio file.
Explosion or stabilization of the NFT market?
The very great shape of this industry is particularly illustrated by the impressive amount of trade generated by NFTs in 2021 with a total of nearly 18 billion dollars. Attracted by the lure of profit, we have thus been able to see all sorts of players embarking on the adventure of non-fungible tokens.
However, and according to a study by the site specializing in market data, NonFungible.com, relayed by our colleagues from BFM, the industry is experiencing a real slowdown at the start of the year. In detail, we thus observe that between January and March 2022, the total number of exchanges of qualified NFTs (i.e. verified Editor’s note), is 7.8 billion, compared to 8.3 billion in the previous quarter. This is therefore a decrease of 6%.
The trend is even more evident if we look at the number of transactions on the NFT market which fell from 14.04 million at the end of last year to 7.44 million during the first quarter of 2022, a decrease by 46.8%. Finally, the trajectory is the same with regard to the number of active wallets with a drop of 25% from one period to the next.
However, there is really nothing to panic about. We can thus be reassured by comparing the market for qualified NFTs from the first quarter of 2022 to the beginning of 2021. And there, the figures make you dizzy with an increase in the amount of exchanges of +1318% as well as in the number of sales: + 1483%!
Clearly, we are probably witnessing a stabilization of the market which was a little carried away at the end of 2021, but absolutely not a fall. Moreover, our colleagues cite the estimates of Gauthier Zuppinger of NonFungible.com who thinks that the NFT industry should weigh 100 billion dollars this year.