A drop in digital asset prices does not necessarily affect the performance of non-fungible tokens (NFTs), as they continue to rise despite cryptocurrency declines, according to the distributed application (dapp) store. radardapp.
For example, during the third quarter of 2021, when the crypto market was struggling to recoup losses from the second quarter, the NFT market was booming, generating $10.7 billion in transactions. Similarly, in Q4, while digital assets were on a rollercoaster ride, NFTs continued their upward movement, processing $11.9 billion in trading volume.
“NFTs were hardly affected by the cryptocurrency slump,” the report said, adding that “despite volatile crypto cycles, NFTs maintain a stagnant positive trend.”
So far this year, the crypto market has seen turbulent fluctuations in the prices of major cryptocurrencies. On the other hand, NFTs are off to a strong start, partly attributed to the launch of Rare Appearance The NFT market, which rose as a rival to the mainstream market Open sea.
DappRadar noted that both the number of exchanges and the number of active unique wallets (UAWs) connected to NFT dapps have been steadily increasing. Since December 2021, an average of 46,800 UAWs have connected to Ethereum (ETH) NFT dapps, representing a 43% growth compared to the number seen in Q3 2021.
“The undeniable role NFTs play in both the metaverse and play-to-win narratives has mostly contributed to positive on-chain metrics despite unfavorable macro indicators,” DappRadar said, adding that celebrities and big Brands entering the space have further strengthened the growth of the space.
Furthermore, the report said that the growing attention and investment in the upcoming metaverse only favors NFTs. Over the course of 2021, several major tech companies, including Goal (previously Facebook) and the crypto exchange KuCoin, dedicated millions of dollars to the development of the metaverse.
“Since the outlook for this asset class is undeniably powerful, people could view the downtrend in cryptocurrencies as a buying opportunity as the value of the underlying asset, in this case ether, drives down the actual price of the asset. NFT,” the report said.
When it comes to NFTs as collectibles, the report found that the United States is “still the most active region,” with the United States leading DappRadar’s NFT traffic “by far.” It is followed by the Philippines, Brazil and Mexico.
As reported, Activate Consulting, a management consulting firm, expects NFTs to become widespread by 2022. In its Technology and Media Outlook for 2022, the firm stated that all technology and media companies would need to adopt this innovation.
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