More than 80% of all non-fungible tokens (NFT) were worth less than $ 10,000 by 2021, according to Chainalysis, which classified them as “hash” in a recent study.
A report from December 6 from the market research firm Chainalysis, “Explaining the NFT Market in 2021”, describes NFT transaction trends for 2021. Researchers at Chainalysis examined chain data from January to October 2021.
While retail transactions accounted for more than 80% of all NFT transactions on any given day in 2021, collector-size transactions grew from 6% in March to 19% by 31 October, indicating an increase in the number of major collectors throughout the year. . …
He added that institutional volume transactions accounted for less than 1% of all transfers, but accounted for 26% of actual trading volume for the period.
A hash-sized transaction costs less than $ 10,000, while a pool-sized transaction costs between $ 10,000 and $ 100,000. According to research, an institution-sized transaction costs more than $ 100,000.
The chart below shows the dominance of retail transactions during the year from January to October, with a definite increase in aggregate volume transactions starting in September.
Quota of NFT transaction volume – sequential analysis
The share of total transfers has primarily been in retail, but collectors and institutions have taken the majority of NFT-dollar-denominated transfers since March. Collection transactions accounted for 63% of the total, and institutional volume transactions accounted for 26%, ie retail transfers accounted for 11% of the volume for the study period.
Share of volume conversions NFT – Electrolysis
The researchers compared the NFT market with the broader cryptocurrency market, where retail transactions represent a much smaller percentage of total transactions.
“The data show that the NFT market is more hash-oriented than the traditional cryptocurrency market, with retail transactions representing a small part of the total transaction volume.”
The potential revenue associated with the NFT was one of the many factors driving the adoption of the cryptocurrency through 2021. This is evidenced by the record high NFT sales of $ 17.7 billion expected through 2021, according to a report from Cointelegraph Research.
In the last week alone, NFT sales totaled $ 300 million, of which almost a quarter came from land purchases in the Sandbox meta-verse.
In addition, according to Chainalysis, by 2021, at least $ 26.9 billion in cryptocurrencies have been sent to ERC-721 and ERC-1155 contracts (the industry-dominant Ethereum standard for NFTs).
Related: Binance Smart Chain and Animoca Brands raise $ 200 million for GameFi projects
Whitelisting is best for profit
Despite the huge sums spent on NFTs, the report states that “only 28.5% of NFTs purchased during mining and then sold on the platform are considered profitable.”
Chainalysis proposed whitelisting to increase the profit opportunities from newly created NFTs. Users who were whitelisted at the OpenSea minting event gave a return of 75.7%, compared to 20.8% who did so without being whitelisted.
“The data shows that it is almost impossible to make big money buying coins without whitelisting them.”
However, NFTs purchased after minting from the secondary market provide “profits 65.1% of the time,” the report added, suggesting that if none are whitelisted, it is best to wait for the NFT pool to be recycled. Market, does not participate in the minting of coins.