NFT gross sales surge to $10.7 bln in Q3 as crypto asset frenzy hits new highs

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LONDON, Oct 4 (Reuters) – Sales volumes of non-fungible tokens (NFTs) surged to $10.7 billion within the third quarter of 2021, up greater than eightfold from the earlier quarter, in line with information from market tracker DappRadar, because the frenzy for crypto property reached new highs.

NFTs use blockchain to document the possession of digital gadgets corresponding to photos, movies, collectibles and even land in digital worlds. learn extra

Surging gross sales and hefty costs on NFTs – gadgets which don’t bodily exist – have baffled many however the explosive progress exhibits no signal of abating. learn extra

The third-quarter determine was up from $1.3 billion in Q2 and $1.2 billion in Q1, DappRadar stated. learn extra

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On the largest NFT market, OpenSea, gross sales volumes hit $3.4 billion in August. Activity remained sturdy even in September when world inventory markets faltered. learn extra

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Cryptocurrency worth positive aspects through the COVID-19 pandemic are sometimes cited as a driver behind the NFT market’s progress — as a result of individuals use cryptocurrencies to purchase NFTs — however fans say that the crypto property have worth independently of market situations. learn extra

To ensure, estimates for the scale of the NFT market differ relying on what’s included. Transactions which happen “off-chain”, corresponding to NFT artwork gross sales at public sale homes, are sometimes not captured by the information.

DappRadar’s numbers, which embrace a number of blockchains and “off-chain” transactions, put complete 2021 gross sales quantity at $13.2 billion. Another market tracker, CryptoSlam, which excludes “off-chain” gross sales, says the determine is $9.6 billion.

Meanwhile, NonFungible.com, which tracks NFTs on the ethereum blockchain solely, places the 2021 complete quantity at $7 billion.

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The most costly recognized NFT sale was a digital collage bought at Christie’s for $69.3 million in March. Since then, no recognized NFT has come near this worth, however public sale homes nonetheless maintain NFT gross sales, typically fetching tens of millions. learn extra

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However, regardless of rising gross sales and celebrities and different traders leaping on the pattern, the variety of NFT consumers stays comparatively small: there have been simply 265,927 lively wallets buying and selling NFTs on the ethereum blockchain in Q3, NonFungible.com stated.

More than half of NFTs bought in Q3 had been $101-$1,000, whereas these within the $1,001-$10,000 bracket accounted for 20% of gross sales, and 17% fetched lower than $100, NonFungible.com stated.

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One NFT model to see notably excessive progress in Q3 was Art Blocks, a U.S.-based challenge which sells NFTs of algorithmically-generated digital artworks.

On Saturday, an Art Blocks NFT bought for two,100 ether (round $6.9 million on the time). Average Art Blocks costs have risen to roughly $15,100 per NFT in September, up from $3,300 in July, in line with CryptoSlam.

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Gaming-related NFTs additionally surged, with the blockchain-based sport Axie Infinity main the “play-to-earn” sector with $776 million in Q3 revenues, DappRadar stated.

Reporting by Elizabeth Howcroft
Editing by Sonya Hepinstall

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