Since the beginning of this year, the NFT sector has seen tremendous success, with new use cases popping up everywhere every day. From celebrities to artists, everyone has shown an interest in NFTs, which is likely to increase in the coming future.
Among the market crashes of the crypto ecosystem, NFTs are one of the components that fared reasonably well. So much so that the NFT industry shows no signs of slowing down despite the fall in Bitcoin and other major crypto’s prices.
According to a detailed report by DappRadar, a decentralized app marketplace, the sale of NFT rose by almost 300% from January to May so far. While the daily transactions were limited to around 21,000 previously, it is over 82,000 now. The number rose even higher to around 94,000 NFT transactions every day since the crypto prices started to plummet concerning the crash.
Economics Of NFTs
After the crypto market crash, several traders liquidated their assets worth almost 1 Million in panic. This sudden surge in transactions caused congestion in the Ethereum Network, which further caused exorbitant transaction fees.
However, higher transaction fees did not affect the NFT traders’ determination but prompted them to shift to alternative blockchains such as the Atomic Market. Currently, Atomic Market’s transaction volume is higher than most of the NFT marketplace.
With the increase in the number of traders, the value per trade dropped unexpectedly as crypto prices started to drop. Almost the first two weeks of May saw an average of $14.9 Million trade daily, which dropped to $6 Million later.
However, retail traders are not the only ones trying to make the best out of the situation. Recently, Meme.com, an internet trend platform, raised $5 Million for a new NFT marketplace that will focus on NFTs and meme cryptocurrencies such as DogeCoin and Shiba Inu.
The company aims to create a “CoinMarketCap for memetic content” where users can compare different memes and trends. Meme.com’s Instagram account already has 7.2 Million followers, which are increasing by the second.
NFTs are among the best applications to come out of the crypto world and have widespread use cases in practically every industry.