JPEGs being sold for several millions, established auction houses offering blockchain-technology based paintings and taking payments in bitcoin, lifestyle labels releasing digital accessories… the list goes on forever. The year 2021 will undoubtedly be remembered in cryptography history as the year of non-fungible tokens (NFTs).
As per statistics from DappRadar, the budding market for NFTs has witnessed its biggest year so far, producing almost $23 billion in transaction volume fervor that contrasts with hardly $100 million in transaction volume reported previous year.
This assessment comes from Blockchain Analytics, a Lithuania-headquartered firm that monitors over 30 platforms that enable decentralised applications. The count of distinct active wallets that engage with NFTs on an everyday basis has increased from 5,000 at the start of 2021 to approximately 140,000 by then end of 2021, according to Blockchain Analytics.
Now, let us review some of the aspects that have contributed to the NFT sector’s spectacular expansion in 2021: Celebrities such as Paris Hilton, Eminem, Naomi Osaka, Tom Brady, and many more… In the last one year, name one celebrity who has not jumped on the NFT wagon.
A big portion of the success of digital artifacts has come from the efforts of the rich and influential, who have done anything from merely acquiring these digital goods to creating their own specialized platforms.
Brands have already poured resources into the industry in large numbers. VISA purchased one out of 10,000 (24×24 pixel) pictures of the CryptoPunks NFT series, therefore cementing its blue-chip reputation, while Nike went to the extent of acquiring a digital shoe and collectibles firm, to mention a few examples.
Auction houses, such as Christie’s and Sotheby’s, have changed itself to meet the needs of buyers by fully embracing digital artwork and begun taking cryptocurrency as payment for their works of art. When his tokenized painting “Everydays — The First 5000 Days” was auctioned for $69 million in March, graphic artist Mike Winkelmann, also called as Beeple, became the costliest artist live, joining the ranks of the world’s most renowned living artists.
As interest in decentralized finance applications continued to grow in the initial half of 2021, blockchain-powered games, often known as GameFi (with regards to the commercialization of video games), soon surpassed its peer classifications in terms of user numbers.
As per DappRadar, play-to-earn online games, a majority of which makes use of NFTs, currently make up 51% of the sector’s consumption, while DeFi represents 37% of the industry’s utilization. GameFi specifically attracted the attention of venture capitalist, who spent an astounding $4 billion into the sector as a result of the buzz.
Eventually, as a result of Facebook’s renaming as Meta, the worth of initiatives relating to the metaverse has skyrocketed. Virtual worlds based on blockchain technology, such as The Sandbox and Decentraland, produced more than $500 million in trade activity and a market capitalization of $3.6 billion.
