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Non-fungible token (NFT) trading volume is expected to reach $175 million by October, according to an analysis by Invezz.
The NFT market has exploded this year, with trading volume rising from $11.5 million in January to $33.8 million in February. These numbers more than doubled to $86 million in March, according to Coinranking.
This is further demonstrated by data from Google Trends. Popularity for the search term “NFT” rose from 0 in November and December to 30 in February and 100 in March.
Based on these growth trends, analysts at Invezz predict a steady increase in the total trade volume of NFTs over the next six months. Its prediction model anticipates sales volume rising to $125.9 million in July and $175.2 million by October.
According to the analysts, the market capitalization of NFTs could also increase overall from $338 million in 2020 to $470 million in 2021.
Invezz Lead Editor Jayson Derrick seems confident in the long-term growth potential of the NFT market, stating:
“While no prediction models are perfect, it is clear the NFT industry can benefit from a multi-year growth trajectory despite April’s decline,” Derrick said. “We expect maybe a further drop to take place in May, but then a continued rise from June and July before reaching the October prediction.”
NFT market plateau
However, as mentioned by Derrick, the NFT market has cooled off in April after March highs. Some analysts are not surprised, saying a market correction was inevitable following the boom in March. The total trade volume of NFTs dipped to $68 million in April, Coinranking data shows.
Data from several NFT marketplaces and aggregators show a similar declining pace in April. On major NFT marketplace OpenSea, monthly sales were $93.6 million in April, after achieving almost $150 million in March. This, after rising from $95 million in February and $8 million in January. On rival NFT marketplace Nifty Gateway, monthly sales of $60.9 million in April were less than half of March’s $144 million.
According to sales data from aggregator NonFungible, weekly trading volumes in April fell below March’s peak. However, these sales were still substantially higher than pre-2021 levels.
NFTs’ rising profile
Invezz analysts have reason to be confident in the prolonged growth of NFTs. Several notable sales of NFTs have significantly raised their public profile. For instance, auction house Christie’s sold an NFT collection by digital artist Beeple for $69 million. Meanwhile, Twitter founder Jack Dorsey sold his first tweet as an NFT for $2.9 million.
Despite the decline in sales, projects in the space have continued to expand. These include official blockchain-based versions of collectible cards from Major League Baseball. They will also be featured in an upcoming animated series by the creator of the hit show “Rick and Morty.”