NFT Market Hits High: Avatar Projects Major Catalyst
The NFT market is currently in a boom period, hitting new highs. In the first half of 2021, the total sales volume of NFTs topped $2.5 billion according to Dune Analytics. Yet the market just keeps smashing through the roof.
The increasing interest in the market today by investors is pretty wild. About $1.06 billion worth of transactions were processed in the marketplace over the past 5 weeks alone. Frenzy is the word right now.
While NFT gaming projects like Axie infinity and the likes have been major contributors to the growth, NFT avatar projects have also been major catalysts.
NFT avatars are unique digital images or gifs of a particular character. With individual uniqueness and special rarities, these avatars are often used as profile pictures by users.
Bored Ape Yacht Club. An example of NFT Avatar
CryptoPunks, one of the top avatar projects, sold a total of $114 million between July 25 and August 1, reaching an all-time volume of $523.5 million. Recently, Gary Vaynerchuk spent about $3.7 million purchasing a CryptoPunks NFT.
Bored Ape Yacht Club (BAYC), another trendy avatar project, recorded a weekly sales of $49.5 million with over 1500 BAYC NFTs sold in one week! Impressive right?
Catch this, in the world’s biggest digital marketplace for NFTs, Opensea, the sales volume of top NFT projects have continued to soar high.
Will this trend continue?
When markets peak like this, there are usually speculations running around that it’s only a bubble and will certainly burst. But will that be the case for the NFT marketplace? It may burst, it may not. Just like how art and physical collectibles retain value over time, we can perhaps say the same for digital NFTs. Booms and busts are a natural cycle of technological innovation.
Read more on — Play and Earn: NFT Projects Going Through The Roof!
Many popular brands, organizations, artists and celebrities are realizing its potential, who recently have been making their way into the NFT marketplace. Earlier this year, Twitter founder, Jack Dorsey sold his first tweet ever as an NFT for $2.9 million. Also in March this year, an NFT was sold for $70 million by digital artist Mikel Winkleman, also known as Beeple.
Fox entertainment announced on investing $100 million into its NFT business unit, Blockchain Creative Labs to create NFTs on various characters, GIFs and art.
The NFT market is quickly attracting lots of investors especially with platforms like CryptoPunks, BAYC, Pudgy Penguins and several others who are OGs in the game.
As with all tech innovations and development, there will always be times of adjustments, learning and growth. The NFT space is no exception. While there may be high short term speculation, they give room for longer term growth as the NFT industry matures. Do you have an NFT yet? Let us know!