Daily Management Review

Sales Volume For NFTs Globally Reach $2.5 Bln In H1 Of 2021


Sales Volume For NFTs Globally Reach $2.5 Bln In H1 Of 2021
The second quarter of the current year saw record volume of transactions in the market for non-fungible tokens (NFTs) as sales so far this year reached $2.5 billion compared to only $13.7 million in the first half of last year, showed data from the marketplace.
An NFT is a form of a crypto asset that represents an intangible digital item such as an image, video, or in-game item. Ownership of NFTs are recorded on blockchain which permits trading of an NFT as a stand-in for the digital asset that it represents.
Early this year, there was an explosion in popularity of NFTs’ and sale volumes of this asset have remained high since. In June this year,  OpenSea, a major NFT marketplace, saw record high in monthly sales volumes on the platform.
Because of the cultural significance associated with BFTs, some enthusiasts see them as collectibles that have inherent intrinsic value. For others, this asset class is an investment on which speculations can be done on the basis of its rising prices.
According to NonFungible.com, a platform that aggregates NFT transactions on the ethereum blockchain, since March this year, the total number of buyers every week on the platform has mostly been 10,000 to 20,000 per week.
The NFT transactions that are included determine estimates of total sales volume.
In the first half of 2021, the sale volumes reached just under $2.5 billion said DappRadar, which tracks sales across multiple blockchains. But the figure for NonFungible.com is at $1.3 billion, excluding around $8 billion of "DeFi" (decentralised finance) NFTs.
Dales which happen on the blockchain, also known as "on-chain" transactions, are only tracked by both the sites. For a section of the largest NFT sales, like the ones that are conducted by auction houses, the transaction take place "off-chain", which mandates that the values need to be manually added to the sale data.
A record $69.3 million at Christie's was paid by a buyer for a digital image in March which was sold as an NFT which remains the highest biggest transaction so far. Sale of a "CryptoPunk", for a value of $11.8 million at Sotheby's, is the second largest known NFT sale.
However the popularity of some of the NFT types is lower than compared to some that simply skyrocket.
For example, collectors are reportedly very eager to lay their hands on the Bored Ape Yacht Club, a set of 10,000 unique digital ape NFTs. As of July 1, 2021, $3,600 was the average ape sold on OpenSea which was an astounding 1,574 per cent higher than the price of the NFT at the time of its launch in April at $215. According to the creators of the club, the United States based Yuga Labs, the total sales of the NFTs have jumped to $61 million.