Prior to reports stating the declining popularity of NFTs, the recent surge in the NFT marketplace and trends show an increase in trading.
NFT overall report shows it outperformed the crypto market and Ethereum-based NFTs rose by 100% addition. Furthermore, Solana is the new blockchain grabbing the attention of the NFT world.
NFTs are the new digital craze that, based on recent reports, remains on top as a trend. The industry has recorded revenue in billions and continues to grow without any major losses.
Following the sudden market drop in the crypto world, the NFT marketplaces were also affected, but this effect wasn’t that serious and the NFT community was able to recover from the lower trends in a very short period.
Here is a full report on important developments in the NFT world:
1. NFTs Market Revenue Surpassed Bitcoin and Other Cryptocurrencies
According to Nansen’s quarterly 2022 report, the NFT market reached new records surpassing the crypto market completely.
With the recent events of the Ukraine-Russia war, European Union crypto policy, and rising inflation rates, the global crypto market suffered from declining trends. Both cryptocurrency and the NFT market experienced the same decrease in the market.
However, compared to the crypto market, NFTs generated more revenue. As illustrated in the above image, the author of the report, Louisa Choe says, “The NFT market continues outperforming the cryptocurrency market year-to-date with a 49.9% year-to-date return when denominated in ETH.”
2. NFT Sub-Categories Revenue: Metaverse Rises In Popularity
NFT sub-categories include Blue-chip, Social, Art, Metaverse, and Games. These sectors are divided due to the vast industry projects and collections. Nansen’s research shows the differences in popularity between these sectors.
The graph is picked by the 500 indexes (blue-chip-500, Art-500, Game-500, etc) which means 500 NFT collections from each sub-category that dominates the chart.
Based on the line graph, there is a volatility difference between all NFTs with Blue chip NFT being the least volatile as of March 2022 but the popularity fluctuates every month. Metaverse has the most volatility and continues to rise in popularity constantly.
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3. Solana: The New NFT Blockchain Network
Solana blockchain has increased in popularity among the NFT community for offering the lowest rates among all networks, especially compared to Ethereum. The transaction price is less than one dollar, making it easier to trade more often for users.
According to many sources, Solana will become the new main network for the NFT marketplace in the near future. Currently, the blockchain has recorded an increased revenue of over a billion dollars.
One of the biggest examples of NFT projects moving to Solana is Degenerate Ape Academy which recorded $1.1 million for each Ape after it transitioned to the network in September 2021. It is also known as Solana’s first one-billion dollar NFT project.
Similarly, DeGods is a well-known talk of the town in the Metaverse for the most successful NFT project. This brand also operates through the Solana blockchain.
4. Ethereum-based NFTs increased by 100%
IntoTheBlock, an on-chain analysis firm for blockchains reports that the Ethereum blockchain recorded a 100% increase in NFTs. Based on the stats, Ethereum initially had 15,000 NFT collections, now, it has over 80k NFT collections on a global scale.
The traded volume jumped dramatically from August 2021 to April 2022. The rise began in September 2021 with 5.9B ETH. Currently, the total traded volume reached 54.8B ETH as of April 18, 2022. In the Ethereum network, NFT collections from Bored Ape Yacht Club, CryptoPunks, and Mutant Ape Yacht Club remain the top 3 most earning brands. With the highest, BAYC, recorded a 1.05M ETH valuation.
Final words
The overall report signifies that NFTs are here to stay and dominate the economic world in the next ten years. It is quite apparent by looking at the charts and research reports from various sources.
Furthermore, as the NFT popularity increases, some NFT projects are slowly shifting toward the Solana blockchain. There might be a possibility of this network rivaling Ethereum soon. Until then, Ethereum remains on top with rising NFT projects and user interest every year.
