Cointelegraph has just published a blockbuster report on NFTs. The research arm of the crypto media outlet carried out the study to break down everything from the basics of NFTs to what the future of the industry may hold.
“Nonfungible Tokens: A New Frontier” Dives Into All Things NFT
Cointelegraph titled the report, “Nonfungible Tokens: A New Frontier”. Basically it is an attempt to answer common questions about NFTs, and explain what is happening in the industry. Indeed, head researcher Demelza Hays states in its introduction that the purpose of the report is to “piece together the big picture of the NFT ecosystem…”.
The thorough report starts off with some history and basics of NFTs. Subsequently it goes on to detail the growth of the NFT market over time, how NFT prices change and different ways to value them, and the future of the young market. It even has some notes on things like different ways to store NFTs and how to mint NFT artwork.
Cointelegraph Projects NFT Sales To Hit $17.7B By End of Year
Surely, one of the most impactful findings from the 83-page report is the projection for NFT sales. Indeed, one of the “Key Takeaways” from the report is the projected number for total NFT sales. The study finds that the figure could surpass $17.7 billion by the end of 2021. New traders entering the market are the given reason for the stark increase.
Given that NFT sales on the Ethereum network alone have already passed $9 billion, the huge figure makes sense. Of course, it won’t come at a surprise that Ethereum is by far the dominant blockchain when it comes to NFTs. As a matter of fact, Cointelegraph notes that about 80% of NFT sales volume in 2021 comes from the network. However, it also notes that only about 37% of all NFT traders are on Ethereum.
In other words, NFTs on Ethereum have higher valuations than NFTs on other blockchains, which accounts for its large volume share. On the other hand, Ethereum’s notoriously high transaction fees are mainly what drive NFT traders to other blockchains. To illustrate, Flow and Wax have similar shares of NFT traders at 32% and 25% respectively. Both networks have much smaller sales volumes compared to Ethereum.
Cointelegraph Notes That Collectibles Dominate NFT Market
The report also breaks down NFT sales by category. Notably, NFT collectibles and art made up 91% of sales volume. This is a markedly higher share than they had in 2020. This is likely due to the mainstream attention that popular NFT avatar collections have gotten over this year. By comparison, the sales shares of gaming and metaverse NFTs have both fallen around 20% from where they were in 2020.
All things considered, Cointelegraph’s report is a great read for anybody interested in the NFT industry. Particularly for newcomers to NFTs, given that it provides ample background and basic information about NFTs. Without a doubt, it points to a bright future for NFTs and the technology that powers them.