NFT Market Hits $22b

The worldwide market for non-fungible tokens reached $22 billion (£16.5 billion) as the desire for collections like the Bored Ape Yacht Club and Matrix avatars transformed digital pictures into substantial financial assets.

According to DappRadar, a sales tracking business, trading in NFTs hit $22 billion in 2021, up from $100 million in 2020, and the floor market cap of the top 100 NFTs ever issued was $16.7 billion.

The First 5000 Days, a digital collage by Beeple was auctioned for $69.3 million in March, making it one of the most costly pieces of art ever sold by a living artist. Human One, another Beeple NFT, sold for $29 million.

According to DappRadar, mainstream enterprises entering the fray have been a crucial cause in the growth in NFT trading.

Football fans have been targeted with NFT marketing and experts have cautioned that they are hazardous investments that are unregulated in the UK. According to George Monaghan, an analyst at research firm GlobalData, it would take years for NFTs to function like traditional markets.

“2021 NFT activity was frenzied. That’ll subside in coming years and NFTs will settle into something more akin to today’s modern art market, where consensus on value is more solid. That said, it’ll be years before any crypto market, let alone NFTs, comes to resemble anything conventional markets would call stable. I wouldn’t throw your rainy day fund into any meme NFTs quite yet,” Monaghan said.

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