NFTs on course to hit $111 billion in volume in 2022

NFTs on course to hit $111 billion in volume in 2022

NFTs are digital assets created through blockchain technology. They can represent anything from in-game items to real estate, and have the potential to disrupt traditional asset classes such as stocks, bonds, and insurance. Though NFTs still have a long way to go before they cannibalize older markets like those mentioned above, experts predict that their market share will grow exponentially during the next decade.

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The “nft report 2022 pdf” is a report that predicts the amount of volume in NFTs will be $111 billion by 2022.

NFTs on course to hit $111 billion in volume in 2022

  • In the first four months of this year, $37 billion was transmitted to NFT markets, compared to $41 billion in all of 2021.

  • Yuga Labs, the designer of the Yacht Club for Bored Apes, is in the lead, with three of the top five projects by volume.

  • By volume, April’s Otherside initiative is already the fifth-largest in history.

  • This year’s volume of NFTs is expected to reach $111 billion.

Cointext thinks it would be smart to take a step back and examine how far the cryptocurrency market has come as it recovers from this week’s massacre (looking at you, Terra).

NFTs have made the most advancement of any industry. So far this year, $37 billion has been transferred to NFT exchanges as of May 1st. According to a recent report by Chainalysis, this puts it on the verge of surpassing the whole sum from 2021, which was $41 billion. 

Extrapolating this forward yields an estimated NFT volume of $111 billion in 2022, but the future of this relatively young business remains uncertain and unpredictable – not to mention the influence of this week’s market turbulence on future volume. 

The NFT market has had a difficult week, as seen by the enormous 31 percent loss in Yuga NFTs, as well as the industry’s market valuation, which has dropped to $19.5 billion.

Coinbase’s NFT Marketplace Fails

The NFT market data from Chainalysis comes only days after Coinbase’s NFT marketplace launched. However, activity in the Coinbase marketplace has been quite lackluster so far. Only 150 transactions were performed on Coinbase’s platform on the first trading day, with a total value of about USD 75,000. These are not excellent results for a billion-dollar corporation like Coinbase, but they are likely to advertise the marketplace aggressively.

Overall, the NFT market is still a unique phenomena. Few predicted that this would grow into a multibillion-dollar company, but it has. However, this has little bearing on the market’s long-term viability. Only time will tell whether or not interest in NFTs stays high.

Volatility

When looking at the market during the last seven days, most collections have lost more than half of their worth. Aside from the Yuga NFTs on Ethereum, more than eight of the top ten blockchains have incurred significant losses.

Since this month, the number of new wallets making purchases has decreased significantly. Analysts have not changed their minds about the digital art industry as a result of these developments.

The biggest increases in value transmitted so far this year happened in February, when OpenSea first faced real competition in the shape of LooksRare, and in April, when Yacht Club for Bored Apes owners Yuga Labs established the Otherside mint. 

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Yacht Club for Bored Apes

It’s only a year since Yacht Club for Bored Apes was launched, but they have become the flagship collection, boasting a floor price of 99 ETH (still $210,000 even after the downturn of the last few days). 

NFTs on course to hit $111 billion in volume in 2022

The BAYC’s supremacy is obvious when looking at the all-time standings on OpenSea. While CryptoPunks is the most popular collection of all time, Yuga Labs, the originator of BAYC, holds the IP rights to it. 

Furthermore, Yuga launched three of the top five initiatives. Volumes of 250,000 ETH and 390,000 ETH are available from Mutant Ape Yacht Club and the aforementioned Otherside mint, both of which were launched only last week. 

NFTs on course to hit $111 billion in volume in 2022

The Otherside project is particularly fascinating since it is Yuga Labs’ effort to build its own metaverse, with collectors attempting to purchase “deeds” to “land” in the virtual reality. 

Beyond the stunning scale seen in the above image, the project’s curiosity may be viewed in two other ways. The first is the gas war that erupted on Ethereum during the mint, with transaction costs reaching unfathomably high levels. Second, the price of ApeCoin, which was necessary to acquire the NFTs, revealed a story: it was bid all the way up before collapsing 50% post-mint. 

The financing rates for ApeCoin became negative shortly after the news that NFT investors would require the currency to participate, as seen in the graph below from Kaiko. This indicates that traders were shorting the currency, expecting it to decrease after the announcement. Of course, as the orange price line demonstrates, this was a pretty foresighted move (despite a brief rebound thanks to a tweet from Elon Musk). 

NFTs on course to hit $111 billion in volume in 2022

Looking ahead

Extrapolating the $37 billion in NFT volume for the first four months of the year, the projection for the year comes in at $111 billion. Of course, given the recent market catastrophe, whether a direct extrapolation is acceptable is a another question completely. 

In 2021, the total crypto market had a trading volume of $14 trillion, with Bitcoin accounting for $9.5 trillion of it. That leaves $4.5 trillion for the remainder of the market. 

If NFTs reach $111 billion this year, they will still account for barely 2.5 percent of non-Bitcoin related trading activity. So, considering the relatively short period that NFTs have been available, there may be more possibility for growth.

The “nft market size” is forecasted to hit $111 billion in volume by 2022. This is a huge increase from the estimated $13 billion that was generated in 2017.

  • nft market report 2022
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  • chainalysis nft market report
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