Non-fungible Tokens (NFT) Records Massive Growth in the Previous Year

There is no denying that most people believe that the virtual economy is going to one day, usurp the physical traditional market. The figures and statistics pouring out of this sector lately, confirms that assertion. The most recent statistics to back up this claim is that released by a joint study carried out by and L’Atelier BNP Paribas where they reported that the total value of transactions in the Non-fungible token (NFT) sector surged past $250 million last year.

While this asset class is relatively new in comparison to others, its record high performance of the previous year has made the study conclude that it was set to play a pivotal role in the growth of the virtual economy of this year, and subsequent ones.

According to the study, this crypto asset class demonstrated all round consistent growth to achieve this new high with the number of wallets transacting NFTs growing by 97%, to 222,179 in 2020. This figure stood at 112,731 in 2019. The study also highlights the fact that the number of buyers and sellers rose from 44,644 to 74,529 and 25,264 to 31,504, respectively. Thus, the number of active wallets accelerated throughout 2020 which means more could be seen in 2021.

Not only that, some traders in the market were also able to generate a profit that was beyond $100,000. And we also began to witness the entrance of big multinational companies like Nike, Louis Vuitton, and Warner Music experimenting with the sector. Just recently, Microsoft announced its partnership with Enjin to launch some NFTs.

A notable factor that could come to play a major role in the adoption of these assets is the fact that its projects are able to bring about personal attachment to portfolio owners not just from a pure interest but also a social perspective. Thus, it opens room for engagements between users and buyers who share the same passions. As such, the sector could perform a very huge role in the virtual economy for years to come.

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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