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$37 billion sent to NFT marketplaces in 4 months, Chainalysis reports

The most recent report of Blockchainanalysis company Chainalysis shows that the NFT-Activities have slowed in 2022 and growth has picked up again since mid-April. The document also noted that growing interest from retail investors — as evidenced by the rising number of smaller remittances — has not yet surpassed market share dominated by institutional investors.

Stabilization of NFT activities in 2022

On the back of impressive growth in 2021 – which peaked in November – the NFT market along with the broader market has embarked on a downtrend from January to March.

As the transaction volume shows, trading activity has recovered since mid-April. As of May 1, collectors had sent over $37 billion to NFT marketplaces as of 2022 — just $3 billion less than the total volume documented for 2021, according to Chainalysis’ latest report.

The report found that total transaction volume bottomed out during the week of March 13 and soon rose again with the launch of Bored Ape Yacht Club’s Metaverse project, which attracted immense capital from institutional investors.

“Despite these fluctuations in transaction volume, the number of active NFT buyers and sellers continues to grow.”

The NFT growth trend is also reflected in the increasing number of active addresses. 950,000 unique wallets bought or sold an NFT in the first quarter, up from 627,000 in the fourth quarter of last year, the report said. Also, new NFT addresses reached 491,000 within the first month of the second quarter, indicating that the number of participants has continued its quarterly growth trend.

Whales continued to collect famous NFT projects

The document states that the vast majority of transactions involve digital assets worth under $10,000. Meanwhile, the number of whale-sized transactions has stalled between 10,000 and 100,000 in the first quarter. However, in terms of total transaction value, institutional transfers account for the bulk of trading activity.

Especially if remarkable NFTprojects came into play, the number of institutional transfers rose sharply. The report gave such an example:

“For the week of October 31, 2021, institutional transfers accounted for 73% of all activity, largely due to the purchase of several NFTs in the Mutant Ape Yacht Club collection.”

Another key takeaway from the report is that NFTs continue to capture a global audience, with no single region accounting for more than 40% of traffic. Central and South Asia – just ahead of North America and Europe – will account for around 20% of the total volume from 2022.

Source: Crypto News Deutsch

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