Cryptocurrency market does not affect NFTs that continue to ‘pop’, research points out

A study by Chainalysis and shared with Cointelegraph has revealed that NFT’s investment continues to “bombard” the cryptocurrency market. According to the material, last year Collectors have sent more than $ 40 billion to smart contracts related to NFT cryptocurrency collections and markets.

This year, however, another $ 30 billion cryptocurrency has been sent to NFT-related smart contracts by April 15th. In addition, the study highlights that the number of active NFT collections has grown almost weekly since March 2021 and is now over 4,000.

The study found that most NFT transactions are retail, which means a cryptocurrency of less than $ 10,000 per transaction.

On the other hand, institutional transfers accounted for 33% of all activities as of the week of 31 October 2021. It rose to 73% due to the purchase of several NFTs from the Mutant Ape Yacht Club collection.

Chain analysis noted that although North America and Western Europe were the first to massively adopt the NFT, As web traffic suggests, no region currently dominates this market, accounting for less than 40% of global traffic.

The NFT market continues to grow

Another study by TradingPedia showed that the NFT market increased in active traders (77% MoM) and trading volume (439 MoM%) in January and is stabilizing in Q2 in 2022.

According to the survey, NFT traders grew by 50% quarterly, despite a historic decline in the trading volume of the trading volume in the cryptocurrency market. TradingPedia researchers ’analysis of blockchain data shows that the recent decline in the cryptocurrency market has not affected NFT’s popularity and trade.

To reach that conclusion, the company conducted a Dune Analytics query to list all NFT trades, after which it added single buyers and sellers, grouped by quarter, revealing the growth of active QoQ traders in the last two quarters. % and 50%, respectively.

“Looking at the latest Q2 data for 2022, we see that the number of daily NFT active traders began to increase in April, averaging 58K per day. This is 12% higher than the 52K average in March. 2022. In the first 10 days of May, we see a return to March averages despite the continuing decline in cryptocurrency markets, ”the company noted.

According to Tradingpedia, in January 2022, the average daily trading volume of the NFT rose by 439% for the MoM, and the daily average of active traders rose by 77%.

“At first glance, that doesn’t make sense for fast-moving crypto markets at a fast pace. That’s still pretty much expected. As markets stop or fall, many crypto investors are trying alternative ways to reach heights.” profits that are common in a bull market, ”the company said.

In addition, Brian McColl, an analyst at TradingPedia, noted that non-fungible tokens are mostly priced in a particular cryptocurrency. When the market goes down, this reduces the absolute value of the dollar and attracts new users to buy its first NFT.

To illustrate the rise and stabilization of the NFT market in 2022, the company combined two sets of data on the same timeline: the only active traders of the day (buyers and sellers) and the volume traded on that day in USD.

“It is clear that 2022 will open a new page for the NFT in January with record volumes and active traders. “, added Brian McCol.

Where are the NFT investors

In another study, BrokerChooser looked at NFT-related research in more than 400 major cities around the world to find out which cities are most sought after by NFT collectors. The survey found that New York City is by far the most popular NFT, with more searches than all other cities in the study combined.

At the other end of the scale, Detroit, USA, was one of the cities most sought after by NFT investors, ranking 50th. Previously, they are in Huston, USA and Australia in Melbourne, both with 100 searches.

“NFT has certainly provided a great return on investment, such as The Board Yacht Ape Club, which was founded for $ 189 and now sells for $ 2.9 million. “It’s a matter of reducing interest rates after the hype has cooled down, while supply is still high.

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