NFT growth on eth 2021

The VP of Product at Coinbase posted a thread on Twitter this weekend taking a look at the insane growth NFTs have seen on Ethereum this year.

Sanchan Saxena posted 9 charts looking at the NFT growth on Ethereum the market has seen over the last year. The majority of these stats are compiled from the analytics site Dune Analytics at dune.xyz

NFT collectors know that there has been insane growth in the space to this point. They just need to look at their favorite collections and influencers. Odds are, they’ve grown at least 10x in the last calendar year.

Let’s take a look at a few of these charts Saxena posted that confirm or deny these sentiments.

New NFT User Explosion

Just this year, we have seen millions of new users interact with the space. The year ended with 2.8M unique wallets, doubling that of July 2021’s count.

NFT growth on ethereum- unique wallets
via @sanchans on Twitter

Keep in mind this is not indicative of new unique users in the space. Many users have multiple wallets and have slowly grown that count throughout the year. Additionally, influences like:

  • New projects
  • Influencer giveaways
  • Hardware wallets for backup

and more would have held at least one NFT for a short period of time. This NFT growth on Ethereum is definitely promising. But, it is probably more indicative of an increase in interaction happening in the ecosystem. New users are onboarding, and current users are getting more entrenched in the space.

August Explosion Established NFT Market

A lot of the NFT growth on Ethereum this past year is traceable to two large months in the market. First, and most noticeably, August saw 10x growth in trading volume from the month prior.

NFT growth on ethereum- unique wallets
via @sanchans on Twitter

Growing from USD $0.48B in July 2021 to $4.18B in August, it was the summer of NFTs. Maybe not as noticeable, the growth from January to February of last year may have been the catalyst for this year-long explosion we’ve seen.

In January of 2021, volume was at USD $20M. In February, that volume reached USD $200M. Dapper Lab‘s NBA Top Shot was the focus during this stretch, as you can see in the DappRadar charts. But as people began to understand the technology in the space, interest grew throughout the year.

Creators Benefiting the Most From NFT Growth

When we get wrapped up in a bull market, it can feel like everyone is winning and making money. When we step back and look on a macro level, we can see profits may be actually be leaning towards a smaller group.

Creators are a massive benefactor of this growth in the space. Royalties are flowing in, and projects are regularly mining out. Expect more creators to see this and enter the space. Also, expect more scams, rug pulls, and bad actors in the space, as they see these profits as well.

2022 will be an interesting year for NFTs, but if 2021 is any indicator, NFT growth on Ethereum is inevitable.

NOTERemember always to do your research, make your own decisions, and invest in projects that interest you!

Follow our new Altcoin Buzz Public NFT Wallet to keep an eye on collections we’re buying, selling, and holding! Use this as a jumping-off point for your research.
0x7304689aAc83c3B236332B0C233878F1819cA89d

Also, Join us on Telegram to receive free trading signals.

Finally, For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.