Are NFTs the Next Big Thing in the World of Digital Assets?
Aiswarya Gopan • 1 min read
After enjoying a stellar bull run in the beginning of the year, the sentiment may have overturned for cryptocurrencies since May, but the downbeat mood failed to bring down the budding enthusiasm for NFTs. A recent report by DappRadar shows how NFT sales soared by over 111% QoQ in Q2 2021.
Total on-chain sales of NFTs rose higher in the second quarter of the year, from $2.3 billion in Q1 to $2.4 billion. Meanwhile, the daily average of unique active wallets increased by 151.89% QoQ in Q2 of this year.
Although, it’s not a rosy picture across the board when it comes to non-fungible tokens. NBA Top Shot’s Flow is one example that has registered a decline in the number of users by 16.62% QoQ while volume has fallen by 66.87% QoQ between April and June. Similarly, CryptoPunks has seen transactions plummet from a high of $95 million by the end of Q1 to only $16 million by June.
The surging levels of activity among NFTs appears to being driven by utility; for instance, games, virtual pieces of land and NFTs with DeFi capabilities are more in favor lately. The world of games – also called GameFi, especially has seen tremendous interest among users.
Axie Infinity is one of the biggest success stories in this sector, adding over 4,700 unique wallets on a daily basis and seeing usage soar by more than 360% since the first quarter of the year. Its play-to-earn model has made it the leading NFT in Dapp rankings in terms of volume.