The NFT market is currently experiencing a hype cycle unlike anything we’ve seen before. The result is that sellers are more active than ever, and the dominance of different blockchains is constantly changing. Ethereum-based NFTs still account for 86% of the market. At the same time, Bitcoin and Solana-based NFTs are both exhibiting phenomenal resiliency and registering impressive growth. This changing environment is a testament to the fast-paced and ever-growing world of the digital asset market as it further develops.
Secondly, wallet adoption at a pace we’ve never seen before, with wallets holding or trading NFTs surging to around 2.5 million. That’s a huge increase from only 89,000 wallets in 2020. This number just goes to further show the growing interest and current active participation in the NFT marketplace. Seller activity has seen a larger increase, shooting up 25.86%, showing a more vigorous trading environment.
Notable Sales and Market Performance
Few things have pried headlines away from other high-value NFT sales in the last few weeks. As proof of brand strength, Bored Ape Yacht Club #7,398 sold for $325,387, confirming the collection’s continued dominance. On top of that, a Bitcoin-based Ordinal Maxi Biz NFT sold for $82,819, and an Arbitrum GUSDC Locked Deposit was sold for $184,956. These recent sales are representative of the many different types of digital assets drawing big money investments.
The NFT market is more fragmented, with the majority of activity still concentrated on Ethereum, but a strong performance on other blockchains. Ethereum-based NFTs still rule the market, but they were the victim of a -8.26% decrease in sales. Solana-based NFTs got a big uptick in sales, jumping 6.39% to $19.4 million. At the same time, Bitcoin-based NFTs recorded an even bigger rise of 12.39%, with total sales rising to $13.7 million. Flow and Immutable X are tied for 6% of the market share, with Ronin taking up 19%.
Sector-Specific Trends and Growth
Certain areas of the NFT market in particular are still thriving. And interest in specific collections is strong, as demonstrated by Solana’s Monkey NFTs, which jumped 52.16% to $3.36 million in sales. Guild of Guardians (Immutable X) made the number two spot with a 6.62% increase in sales ($3.31 million).
Last year, gaming NFTs generated a staggering $5.2 billion in sales. At the same time, collectibles outpaced all other e-commerce categories with $8.4 billion in sales that year. These numbers highlight the scope of economic activity happening in these segments of the NFT market. Further fueling this momentum are collectors and gamers alike.
Blockchain Ecosystem Dynamics
NFTs’ success on the various blockchains aligns with the broader cryptocurrency ecosystem. Take, for example, this increase in Bitcoin-based NFT sales that occurred as more hype and development continued to make waves across the Bitcoin network. In much the same way, the rise of Solana NFTs reflects both the broader growth and adoption of the Solana blockchain.
These changes in market share between different blockchains further reflects the diversification of the NFT landscape. While Ethereum remains the dominant platform, the increasing presence of alternative blockchains suggests a more competitive and distributed market in the future. This diversification has the potential to foster increased creativity and broader reach for both NFT creators and collectors.
