This month, Cointelegraph Research will publish a comprehensive report on non-fungal tokens, discuss NFT in detail, and provide step-by-step instructions for entering the market.
In collaboration with several partners including Enjin, NFTBank, Sandbox and others, the report will assess the technology behind NFTs, their regulatory challenges, their potential growth and current market position. The report will also indicate the obstacles the market may face in the future and possible ways to overcome them.
Early 2021 saw an increase in interest in NFT, with the largest NFT market, OpenSea, growing sales a hundredfold in six months. NFT’s total sales reached $ 2.5 billion in the first half of 2021, nearly eight times the total for 2020.
As the market leader, OpenSea primarily uses Ethereum, although Polygon and Klaytn are also available. Other markets also allow for alternative blocks, but Ethereum has dominated in recent months, accounting for at least 97% per week of every segment of the NFT market, including games, collectibles, and marketplaces.
However, despite Ethereum’s current dominance, there are some serious competitors in the market. As shown in the chart below for total NFT and trader sales, the World Asset Exchange (WAX), Polygon, and Stream are the strong opposite. So far in 2021, every third trader has used Flow, and every fourth trader has used WAX, although almost 90% of all sales this year came from Ethereum.
More importantly, the decline in Ethereum trading volume at the start of the year was mainly due to NBA Top Shot, Dapper Lab’s NFT collectible project based on the Flow blockchain, which generated nearly $ 500 million and attracted over 800,000 users in the first place. quarter. Over the long term, however, Flow has failed to secure significant market share despite lower gas taxes (pennies versus tens of dollars) and higher transactions per second.
Although WAX only had around $ 100 million in 2021 (just over 1%), the site says it is backed by several well-known companies including Google, Atari, Funko, Topps, etc.
Given the large number of unique traders in the sector and the potential for growth through the release of new collectibles and NFT toys in collaboration with established companies, the activity on the WAX blockchain may increase in the future. In addition, the ease of NFT transactions on WAX could attract new traders, leading to more blockchain sales. However, the peak of activity (sales of $ 15 million per week) came in mid-April. Since then, the blockchain has processed $ 2-3 million in weekly sales, and it’s unclear if those numbers will rise anytime soon.
On the subject: Why NFTs Can Be More Risky Investments Than Cryptocurrencies – Reports
Unlike Flow and WAX, Polygon has been able to achieve consistent and rapid growth over a long period of time, with most of its sales recently sold through markets such as OpenSea and Aavegotchi’s Baazaar. Polygon’s popularity outside of the NFT market, coupled with lower gas taxes ($ 0.01 per NFT registration in OpenSea versus $ 230 in Ethereum), could drive NFT market activity on the Polygon block in the long run.
Other notable blocks such as Waves (also known as Waves Ducks), Binance Smart Chain and Tezos (also known as Hic Et Nuc, NFT’s crypto art platform) are present in the market and account for less than 1% of all NFT sales. in 2021. Other blocks are now included in this area, such as the Devvio blockchain, which is focused on generating profit.