NFT Activity Stabilizes After 2021 Explosion, Volume Continues to Grow

Daniel Attoe
Daniel Attoe

Updated · May 06, 2022

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The total volume of NFT transactions is on course to beat last year’s total in the second quarter.

Fluctuating Growth

NFT transactions have stabilized in 2022 after blockchain-based technology saw explosive growth last year, a new report has shown.

The report, released by blockchain analysis firm Chainalysis on Thursday, indicates that the number of accounts trading the tokens has dipped significantly in recent months. 

Non-fungible tokens, or NFTs, are unique items based on the blockchain and, unlike cryptocurrencies, are designed to be non-interchangeable. They represent the ownership of items such as images, videos, audio, and even text.

According to Chainalysis, while the volume of NFT transactions has risen, it has suffered a fluctuating increase. A breakdown shows that 2021’s growth flowed into the new year before experiencing a dip in February. However, it has shown a clear move towards recovery since mid-April.

This recovery could be linked to the release of Bored Ape Yacht Club’s metaverse project, says Chainalysis. 

So far this year, collectors have sent more than $37 billion worth of digital assets to NFT marketplaces. This is close to 2021’s total of $40 billion – a clear indication that 2022’s volume will beat that of the previous year.

Most NFT transactions are retail-sized, meaning they are worth less than $10,000. Collector-sized transactions, or those between $10,000 and $100,000, as a share of all transactions, grew significantly before plateauing.

“It’ll be interesting to observe whether NFTs can recapture the broad public interest they achieved in late 2021 and whether this leads to increased transaction activity or rising prices for popular NFT collections,” the report concludes.

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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