NFTs Trading Volume in 2021 Jumps to $23 Billion

Demand for non-fungible tokens (NFT) has continued to rise in 2021 as the total trading volume for the year touched $23 billion. This is a significant jump from the previous year when a little less than $100 million worth of NFTs was traded.

The data compiled by the blockchain analytics platform, DappRadar detailed that the number of blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term addresses engaging with NFTs on a daily basis went up from 5,000 at the beginning of this year to around 140,000 at the year-end. DappRadar tracks more than 30 blockchains supporting decentralized applications.

Expensive JPEGs?

NFTs are digital artworks that are stored on blockchains. These digital images are auctioned, can be purchased with cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and can be held on decentralized wallets. The authenticity and easy transfer of ownership has pushed the popularity of these digital artworks among both artists and investors.

Though NFTs have existed for a few years now, their demand has exploded mostly in the past couple of years. Many popular artists, sport-persons and celebrities are now launching their NFTs, pushing more demand in the sector.

Additionally, NFTs have made their way into the mainstream art world as top auction houses are now selling these digital forms of art. Earlier this year, Christie’s sold an NFT for $69 million in cryptocurrencies, which is still the most valued NFT so far. Furthermore, projects like CryptoPunks and Bored Ape Yacht Club are creating exclusive digital clubs with the holders of their collections.

“With all of these elements in play, and hundreds of exciting projects launching by the day, the demand for NFTs spiked to unprecedented levels,” DappRadar stated. “The pieces from specific collections are viewed as value storage units and sparked another exciting trend: fractionalization of NFTs.”