Non-fungible tokens (NFTs) have been in great demand since the beginning of 2021 and the statistics for the third quarter show that the major indicators have continued to rise. nonfungible.com recently published its quarterly NFT report for the third quarter of 2021 which shows an increase in active portfolios, the number of NFT buyers has increased, and the number of sellers has grown faster than the number of buyers.
NFT business rises higher in Q3
NFT market actions in the third quarter of 2021 smashed previous recorded quarterly metrics with continued demand for NFT in the last few months of the year. Web portal nonfungible.com researchers have published a study covering the third quarter of 2021 and the data shows that most indicators are growing. For example, the number of active wallets, the number of wallets that interacted with an NFT smart contract, increased by 102.52% from 203,719 active wallets in the second quarter to 412,578 in the third.
The number of NFT buyers increased by 166.73% from 97,658 in the second quarter to 260,489 in the third. Sellers jumped from 40,056 to 122,910 and saw a much bigger increase of 206.84% over the last quarter. The volume of US dollars exchanged for NFTs in the second quarter was $782 million, but in the third quarter it increased significantly to $5.9 billion.
The third-quarter report from nonfungible.com notes, “During the all-time high of US dollar trading volume at the end of August, we saw another all-time high in terms of active portfolios.” “Weekly trading volume, which was already nearly $91 million in a week, has increased to $1.674 billion in two months.” Nonfungible.com researchers add:
After this peak, we notice that the weekly trading volume is stabilizing at a level almost three times higher than its previous level, at around $300 million per week.
In terms of loyalty, NFT sponsors such as metaverse NFTs are the most loyal and this is followed by NFT holdings. NFTs keep track of sports, games, arts, utilities, and collectibles in connection with loyalty to the NFT. Collectibles saw the most sales accounting for 76% of sales while 9% of sales were concentrated on artwork NFTs. Sports will be the lowest selling NFTs at just 1% of sales in the third quarter.
The third quarter report states that “the NFT market is developing rapidly and at an exponential rate.”
NFT’s largest collectible projects include Cryptopunks and Bored Ape Yacht Club (BAYC). Regarding collectible NFTs, “the primary market share more than doubled, representing 75% of the entire collectibles market,” the study researchers explained. “This very high rate reflects the relative saturation of this segment: too many assets were issued for too little resale or at lower prices.”
The researcher’s report concluded that the market is developing rapidly and “at an exponential rate”. The Q3 NFT report shows that liquidity is unprecedented but it is also a “more speculative and volatile market than ever before”. “The recent growth in the NFT industry has been almost unbelievable, in just a few short months, the billion dollar mark in NFTs in circulation was crossed, followed by a billion dollars per quarter and then only then to be crossed by the billions per month.” com’s study reveals. The researchers also concluded:
If we are to believe the current numbers, the market is in a phase of dynamic, unstoppable growth, with no shadows hiding in the corners. However, the reality is a little different and we would like to be clear that indicators like trading volume in USD or number of trades are not the best metrics by which to monitor the market as they only reveal the tip of the iceberg. .
What do you think of the non-fungible assets (NFT) action in the third quarter? Tell us what you think about it in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, nonfungible.com
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