NFT transactions stabilize after explosive growth in 2021
Did you miss a session from GamesBeat Summit 2022? All sessions are available to stream now. Learn more.
NFT transactions exploded in 2021 as fans discovered the digital collectible tech built on the blockchain, but it has since stabilized and slowed its growth in 2022, according to a report by analysis firm Chainalysis.
Non-fungible tokens (NFTs) have been one of the most dynamic and prominent parts of decentralized web 3 technology over the last two years. And now there’s a big discussion about whether interest in NFTs is flatlining or not.
The Wall Street Journal cited data about flatlining this week, and some data analysts such as Dune Analytics disputed its interpretations of data from Nonfungible.com. Now the Chainalysis data will spread more fuel on that discussion.
NFTs are blockchain-based digital items whose units are designed to be unique, unlike traditional cryptocurrencies whose units are meant to be interchangeable. NFTs store data on blockchains — with most NFT projects built on the Ethereum blockchain — and that data can be associated with files containing media such as images, videos, and audio, or even in some cases physical objects.
NFTs typically give the holder ownership over the data, media, or object the token is associated with, and are commonly bought and sold on specialized marketplaces, Chainalysis said.
NFTs saw explosive growth in 2021, but this growth hasn’t been consistent and has leveled off so far in 2022. Since the beginning of 2021, NFT transaction volume has grown significantly, but this growth fluctuates. NFT activity ebbs and flows month to month — in 2022 thus far, the value sent to NFT marketplaces continued its 2021 growth in January, entered a downturn in February, and then began
Read more on venturebeat.com
