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December 30, 2021
The NFT market has exploded in the past year. The trading volume increased by almost 43,000% compared to 2020.
NFTs or Non-Fungible-Tokens really took off this year. In March, the artist Beeple sold the artwork 'The First 5000 days' as an NFT for almost $70 million. Newspapers worldwide were paying attention to the nascent NFT market and then it had only just begun.
At the end of April, the Bored Ape Yacht Club was launched, a collection of 10,000 pictures of bored-looking monkeys. They were first sold at a price of 0.08 ether, less than 200 euros each. The monkeys started to become popular and famous people started showing off the Bored Ape they had bought. In November, Jimmy Fallon of The Tonight Show bought a Bored Ape for about $145,000, introducing many of his fans to the phenomenon for the first time. The hype continues to grow that way.
Due to the sharply rising prices of the NFTs, the trading volumes have also increased enormously. In the past 30 days, the Bored Ape images volume was as high as $111 million. Figures from The Block show that the OpenSea website is the market leader among NFT platforms. The majority of the volumes are realized on this website.
Source: The Block
Especially from August on there is a huge jump in the monthly volumes. In total, about $13 billion worth of NFTs were sold this year. Last year it was just $33 million.
NFTs can be very lucrative for digital artists. They will of course receive an amount because they sell the work first, but they can set that they will also receive a percentage with each subsequent sale. This is not the case with physical art where the artist does not benefit from the higher price of subsequent sales.
Buying NFTs is currently not user friendly for people who have no experience with buying crypto coins. For example, you have to buy Ethereum, send it to a personal wallet and then make purchases on a website like OpenSea. Many people just leave their cryptocurrencies in the online wallets of the exchange they use and have no experience with a personal wallet. That is why the cryptocurrency exchanges are also working on their own NFT platforms. For example, Coinbase will soon launch an NFT platform for its more than 73 million customers and there is a good chance that other crypto exchanges will follow this example.