NFT Bull Market Invites Several New Buyers From all Over the World

As the NFT market has been steadily growing, international investors see it as a worthy investment to get involved in.

Brands also realize the potential digital assets provide and start to invest more in them. As the adoption of non-fungible tokens has been on the rise among major consumer brands, Wright said that he could see a future where NFTs make up the majority of crypto.

“I think a lot of people on Twitter are DeFi-focused, but I see it becoming a smaller part of crypto. Other segments are growing faster,” said Wright.

Even after a January slump that nearly halved cryptocurrency markets, NFT marketplace OpenSea had a record high sales revenue.

Derek Schloss, the CEO of crypto venture firm Collab+Currency’s NFT investments, believes that NFTs have a promising future.

NFTs are going to wrap all scarce non-fungible goods,” said Schloss. “Every major brand is thinking about NFTs and their Web 3 strategy.

  • Non-fungible tokens were prosperous in 2021. They emerged with the booms of cryptocurrencies and the other digital currency markets.
  • In 2021, Chainalysis calculates that close to $44 billion (R675 billion) worth of cryptocurrency was sent to NFT-related smart contracts, up from $106 million (R1.6 million) in 2020.
  • The firm identified two new schemes that criminals used in 2021: wash trading and money laundering.

Several big brands like Twitter and McDonald’s have gotten into the blockchain and crypto space as it’s proven to be successful. However, there are still many people looking for digital collectibles. Data from a survey shows the number of unique NFT buyers reached a new high in January, with 895,000 shoppers. Compared to the previous month, there was a rise in new unique buyers by 6.5%.

The number of unique sellers grew by about 14% between December and January. There were over 740,000 vendors at the time, with the value just shy of its November ATH.

According to the data from a crypto tracking website, January marks the third consecutive month with over 800,000 unique NFT buyers. The number of transactions and the average sales price are still increasing, which means there is still momentum behind these tokens despite the growing uncertainty in this volatile crypto market.

As expected, Ethereum is still the dominant blockchain in terms of NFTs. In January, it processed $3.9 billion worth of transactions. Solana came second, processing $190 million worth of transactions in January.