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Insane NFT Growth on Ethereum in 2021! - NFT

NFT

www.altcoinbuzz.io 18 January 2022 18:14, UTC
  
Reading time: ~3 m

The VP of Product at Coinbase posted a thread on Twitter this weekend taking a look at the insane growth NFTs have seen on Ethereum this year.

Sanchan Saxena posted 9 charts looking at the NFT growth on Ethereum the market has seen over the last year. The majority of these stats are compiled from the analytics site Dune Analytics at dune.xyz

1/ The #NFT ecosystem has grown rapidly in 2021! Let's dive into the growth of #NFTs on #Ethereum ecosystem.

9 NFT charts to remember in this 🧵:

— Sanchan S Saxena (@sanchans) January 14, 2022

NFT collectors know that there has been insane growth in the space to this point. They just need to look at their favorite collections and influencers. Odds are, they’ve grown at least 10x in the last calendar year.

Let’s take a look at a few of these charts Saxena posted that confirm or deny these sentiments.

New NFT User Explosion

Just this year, we have seen millions of new users interact with the space. The year ended with 2.8M unique wallets, doubling that of July 2021’s count.

via @sanchans on Twitter

Keep in mind this is not indicative of new unique users in the space. Many users have multiple wallets and have slowly grown that count throughout the year. Additionally, influences like:

  • New projects
  • Influencer giveaways
  • Hardware wallets for backup

and more would have held at least one NFT for a short period of time. This NFT growth on Ethereum is definitely promising. But, it is probably more indicative of an increase in interaction happening in the ecosystem. New users are onboarding, and current users are getting more entrenched in the space.

August Explosion Established NFT Market

A lot of the NFT growth on Ethereum this past year is traceable to two large months in the market. First, and most noticeably, August saw 10x growth in trading volume from the month prior.

via @sanchans on Twitter

Growing from USD $0.48B in July 2021 to $4.18B in August, it was the summer of NFTs. Maybe not as noticeable, the growth from January to February of last year may have been the catalyst for this year-long explosion we’ve seen.

In January of 2021, volume was at USD $20M. In February, that volume reached USD $200M. Dapper Lab‘s NBA Top Shot was the focus during this stretch, as you can see in the DappRadar charts. But as people began to understand the technology in the space, interest grew throughout the year.

Creators Benefiting the Most From NFT Growth

When we get wrapped up in a bull market, it can feel like everyone is winning and making money. When we step back and look on a macro level, we can see profits may be actually be leaning towards a smaller group.

10/ Creators have also earned $715M in royalties via secondary transactions (note this is based on #NFTs transacted on SuperRare, Zora, and OpenSea, which accounts for 98% of market share today). pic.twitter.com/8fmyH5w8Xa

— Sanchan S Saxena (@sanchans) January 14, 2022

Creators are a massive benefactor of this growth in the space. Royalties are flowing in, and projects are regularly mining out. Expect more creators to see this and enter the space. Also, expect more scams, rug pulls, and bad actors in the space, as they see these profits as well.

2022 will be an interesting year for NFTs, but if 2021 is any indicator, NFT growth on Ethereum is inevitable.

NOTERemember always to do your research, make your own decisions, and invest in projects that interest you!


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