Non-fungible token (NFT) collectors recently traded more than USD 35 billion in the market, a figure that for the first time approaches the USD 40 billion traded on the platforms of this ecosystem.
In the first quarter of 2022, 950k unique addresses bought and sold NFTs, up from 627k during the fourth quarter of last year. It means that the trade in digital collectibles or NFTs is increasing.
The statistics included in the latest report from Chainalysis point out that trading non-forgeable tokens could be taking a new momentum, after falling significantly after the fever unleashed last year. But who is buying NFTs and what is he using them for?
Tracking of NFT trading transactions by Chainalysis analysts reveals that there is demand for these crypto assets in all parts of the world, but especially in Asia, North America, and Eastern Europe.
Although no region captures more than 40% of all web traffic generated around non-fungible tokens, as of the beginning of 2021, the figures suggest that, like the cryptocurrency market, NFTs have captured a global market.
Chainalysis data further shows that while the number of retail users acquiring NFTs has increased, the largest volume of trade is in the hands of institutional investors.
“For example, during the week of October 31, 2021, institutional transfers accounted for 73% of all trading activity. Largely due to the purchase of various NFTs from the Mutant Ape Yacht Club (MAYC) collection,” the report notes.
Analysts add that in reality everything that happens in the market for non-fungible tokens is not sustained on a constant basis, Given this, institutional investment in NFTs has declined, but still accounts for 33% of all business.
Why are institutions buying NFTs?
Companies and large firms are increasingly interested in the NFT market because they are part of life in metaverses.
“This rapid adoption is a testament to the present and future of the metaverse. NFTs are useful for it [desarrollo de metaversos] and is reflected in the price of virtual real estate,” the Chainalysis report reads.
“From September 2019, to March 2022, tokenized virtual real estate prices grew by 879%,” the analysts add.
The metaverse is expanding at such a rapid rate that even virtual real estate prices are outpacing physical real estate by 532%.
And in these virtual worlds companies are using NFTs to integrate interactive objects. Also, They are key pieces in multiplayer games, as well as in play-to-win projects or as access tickets for private events and in exclusive communities.
In fact, Chainalysis points out that the use of NFTs for access to activities closed to the general public has been a major driver of demand of these non-forgeable tokens to date. “And it seems to be translating into increased sales of virtual real estate.”
Companies and large projects also they are using NFTs for renting and leasing virtual spaces. They are also used for airdrops of projects that are yet to come. As well as for future integrations and functionalities of experiences with Virtual Reality and Augmented Reality.