NFT sales reach $ 10.7 billion in third quarter as crypto asset frenzy reaches new highs

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By Elizabeth Howcroft

LONDON (Reuters) Non-fungible token (NFT) sales volume jumped to $ 10.7 billion in the third quarter of 2021, more than eight times the previous quarter, according to data from market tracker DappRadar, so as the frenzy for crypto assets has reached new highs.

NFTs use the blockchain to register ownership of digital objects such as pictures, videos, collectibles and even land in virtual worlds.

Soaring sales and high prices for NFT items that do not exist physically have baffled many, but the explosive growth shows no signs of slowing down.

The third quarter figure was up from $ 1.3 billion in the second quarter and $ 1.2 billion in the first quarter, DappRadar said.

NFT Sales Reach $ 10.7 Billion in Q3 DappRadar https://graphics.reuters.com/FINTECH-NFT/Q3/zdpxodznjvx/chart.png

In the largest NFT market, OpenSea, sales volumes reached $ 3.4 billion in August. Activity remained strong even in September when global equity markets weakened.

NFT sales on OpenSea https://graphics.reuters.com/FINTECH-NFT/Q3/egvbkydokpq/chart.png

Cryptocurrency price gains during the COVID-19 pandemic are often cited as an engine for the growth of NFT markets as people use cryptocurrencies to buy NFTs, but enthusiasts say crypto assets have a value regardless of market conditions.

Granted, estimates of the size of the NFT market vary depending on what is included. Transactions that take place off-chain, such as NFT art sales at auction houses, are often not captured by the data.

Figures from DappRadars, which include several blockchains and off-chain transactions, put the total sales volume for 2021 at $ 13.2 billion. Another market tracker, CryptoSlam, which excludes off-chain sales, says the figure is $ 9.6 billion.

Meanwhile, NonFungible.com, which tracks NFTs on the ethereum blockchain only, estimates the total volume of 2021 at $ 7 billion.

Collectible NFTs are the most popular https://graphics.reuters.com/FINTECH-NFT/Q3/akvezqkokpr/chart.png

The most expensive known NFT sale was a digital collage that sold at Christies for $ 69.3 million in March. Since then, no known NFTs have come close to this price, but auction houses still hold sales of NFTs, often reaching millions.

Weekly NFT Buyers NonFungible.com https://graphics.reuters.com/FINTECH-NFT/Q3/lgpdwkyjdvo/chart.png

However, despite the growth in sales and celebrities and other investors jumping on trend, the number of NFT buyers remains relatively low: there were only 265,927 active portfolios trading NFTs on the ethereum blockchain in the third quarter. , NonFungible.com said.

More than half of NFTs sold in the third quarter were $ 101 to $ 1,000, while those in the $ 1,001 to $ 10,000 range accounted for 20% of sales and 17% brought in less than $ 100, said NonFungible.com.

Most NFTs cost less than $ 1,000 https://graphics.reuters.com/FINTECH-NFT/Q3/gkvlgwojlpb/chart.png

One NFT brand that saw particularly strong growth in the third quarter was Art Blocks, a US-based project that sells NFTs of algorithm-generated digital artwork.

On Saturday, an NFT Art Blocks sold for 2,100 ethers (about $ 6.9 million at the time). Average art block prices jumped to around $ 15,100 per NFT in September, from $ 3,300 in July, according to CryptoSlam.

Art Blocks NFT CryptoSlam sales https://graphics.reuters.com/FINTECH-NFT/Q3/akvezqknlpr/chart.png

Gaming-related NFTs have also increased, with blockchain-based game Axie Infinity leading the gaming industry to win with $ 776 million in third-quarter revenue, DappRadar said.

(Reporting by Elizabeth Howcroft; Editing by Sonya Hepinstall)

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