The Non Fungible Token (NFT) crazy is not showing any signs of weakening despite the considerable recent price tank of Bitcoin and the coin market in general. The activity on these NFT platforms is reaching new highs every now and then and is likely to experience further explosive growth in the near future, according to a report from DappRadar.
NFT Sales on the Rise
The sale of NFTs has increased more than 300% since last January from around 21,815 to as high as 82,400 to date. Interestingly, despite the recent crash of May 12 wiped more than $800 billion from the coin market, NFTs have continued to rise and have surged to 94,000 transactions every day.
The first 11 days of May 2021 saw an average of $14.9 million worth of NFTs traded every day. While the NFT value in dollar terms has decreased after the May 12 crash, the volume still hasn’t decreased. This shows that many NFT dealers are dealing with cryptocurrencies and aren’t entirely basing their purchases according to latest price index of these cryptocurrencies.
Issues with NFTs
This shows that despite the concern regarding cryptocurrencies, the NFT market is acting kind of independently from the mainstream crypto market. This is important to note because even though technically not a part of the crypto sector directly, NFTs depend on blockchain networks to store and transaction the digitized unique tokens. Many of the NFTs are based on Ethereum itself which is experiencing several issues regarding transaction speed and cost. Recently, the costs and time to transact with NFTs through these platforms have increased.
NFTs Continue to March on
Despite these issues, NFTs are still taking off like crazy. The rise of Dogecoin and its memes has opened new frontiers for the meme genre and soared its popularity and mainstreaming to new levels. So much so that people are buying meme NFTs as digital collectibles for hundreds of thousands of dollars, sometimes even millions. Just the day before meme.com raised more than $5 million in seed funding for a new marketplace for meme-based content.
Meme.com also aims to create a meme NFT market cap that showcases charts and timelines. Meme.com has courted several prominent investors including Sandeep Nailwal, the founder of Polygon (MATIC) cryptocurrency project.
Meme-based content is likely to gain further traction with time. Previously, the sector was thought of as a fringe amusement for social media users. But, now with the advent of NFT marketplaces, the sector is close to crucial legitimization.
Image Source: Marco Verch Professional under CC