During 2021, the NFT market will have a total transaction volume of over $17 billion, an increase of 21,000% compared to the previous year. This was revealed in a report published by Nonfungible.com, a Canadian company that specializes in handling data and analysis about these cryptocurrency asset exchanges.

Trading in irreplaceable tokens has become increasingly lucrative over the past 12 months as the number of digital currency packages earning millionaire profits has more than doubled compared to 2020. It seems that the media has also taken an interest in the development of the metaverse, which has also encouraged the purchase of digital assets associated with video game platforms such as The SandBox and Decentraland.

NFT: The Shopping Boom of 2021

As expected, the survey conducted by Nonfungible.com highlights the significant growth of NFT global sales, which exceeded $17 billion last year. In 2020, the global annual transaction value of non-homogenized tokens traded barely reached $82 million.

In 2021, about 2.3 million people participated in NFT negotiations, compared to 75,000 the year before, and as many as 470 digital wallets with profits equal to or more than $1 million in shares. Nevertheless, the figures provided by the Canadian company are far below the projections of the blockchain analysis firm Chainalysis, which expects an annual turnover of no less than $40 billion.

“Interestingly, we are seeing fewer and fewer people, fewer buyers, fewer sales …… The global community may have shrunk due to speculation and loss of interest in collectibles. But the global market remains high and the value of some of these assets continues to increase.”

These are the words of Gaithier Zuppinger, co-founder of Nonfungible.com, in an interview with Cnbc. The manager then explained that the estimates made by his company did not take into account trades executed by robots or wash trading operations, i.e. techniques that have the potential to over-inflate NFT prices to the detriment of unsuspecting end buyers; the discrepancy with the initial prediction would be attributed to the different methods used to record the exchanges.

The analyst said the market for irreplaceable tokens will become less speculative in the future due to the entry of large fashion companies and financial institutions.

How banks will use NFT

Which NFTs are most attractive to buyers?

Artwork in the NFT format was the most popular among investors in 2021, ending the year with a total volume of over $8 billion. Users also favored metaverse-related digital assets, particularly land and buildings, whose sales increased by $514 million throughout 2021; this new market niche is estimated to have generated more than $5 billion in revenue.

Investing in virtual land on platforms such as Decentraland, Axie Infinity or The SandBox can have more than one advantage: first of all, owning land offers the possibility of participating in the governance of the project, and in addition, owners of gaming spaces can monetize activities generated on the land they own, according to the terms set by the respective communities.

How to invest in the metaverse