NFTs generated $11.9 billion in trades during the 4th quarter of 2021.
The demand for Non-Fungible Tokens (NFT) and the price of cryptocurrencies are not correlated.
Crypto analytics project DappRadar has made such observations in its research.
Cryptoverse saw frequent Fear, Uncertainty, Doubt (FUD) in 2021 ranging from Chinese crackdown to natural gas issues in Kazakhstan affecting almost one-fifth of Bitcoin’s mining activity.
Macroeconomic issues such as the COVID surge, Fed’s imminent intention to raise interest rates also made the journey tough.
But NFT market stood its ground and maintained the upward trajectory.
Performance of NFTs
In the 3rd quarter of 2021, NFTs generated $10.7 billion in trades. The market outdid itself in the 4th quarter by generating $11.9 billion.
ETH reached its All-Time High (ATH) of $4,878 in November. Since then, it has not been able to show the same support. It is currently trading for 3262 USDT on Binance.
Notwithstanding, not only the number of NFT sales has increased but the number of Unique Active Wallets (UAW) connected to NFT Decentralized Applications (DApps) also increased.
On average, 46,800 UAW have connected to Ethereum NFT DApps since December 2021, marking an increase of 43% since the 3rd quarter of 2021.
The surge in popularity of Metaverse and Play to Earn games may also be a contributing factor.
The biggest contributor to DappRadar NFT traffic is the United States followed by the Philippines at 2nd. India stands at the 7th position.
Games Dominate the Bulk Activity
In 2021, blockchain games became the most used DApp category surpassing Decentralized Finance (DeFi).
Until the 4th quarter, both types of DApps shared the usage dominance making up 90% of the industry’s usage combined. However, when the downtrend in cryptocurrencies began, the dominance of DeFi DApps began to wane.
Games now represent 52.4% of the industry’s activity, while DeFi’s usage dominance stands at 34.7%.
NFTs represent assets on a blockchain. They do not have an intrinsic value. Rather, they represent the value of the asset on the blockchain. As cryptoverse matures, gradually people will embrace DApps the demand for NFTs and GameFi may rise further.
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