The statistics and adoption of NFTs in 2022 prove that the NFT ecosystem still has much to offer. While the hype and a huge chunk of the trade volume got wiped out last year, NFT adoption increased significantly. But what do the numbers reveal?
Let’s take a look at data from the past year and how we can use this to predict the NFT market performance for 2023. This article will examine the top NFT marketplaces and the chains with the highest volume. We will also evaluate the possibility of increased NFT adoption in the future,
What the Numbers Reveal
Numbers don’t lie, and data from Nansen, a DeFi and NFT analytics platform, shows that the Ethereum blockchain is still the most utilized chain for building NFT projects. OpenSea, LooksRare, Sudo Swap, and CryptoPunks are some of the leading marketplaces for non-fungible token sales. OpenSea has managed the largest trade volume in the past year. The platform’s best trading volume measured in ETH was in January 2022, when over 360,000 ETH was traded on the marketplace.
From January 2022 to September 2022, trading volume for non-fungible tokens plummeted by over 95%. Despite this massive collapse in trade volume during the year, new peaks were still achieved. For example, May 1st, 2022, went down in history as the day with the single highest trade volume across the NFT market. The trade volume for that day surpassed $740 million in value, and a little less than 120,000 NFTs were sold.
Notably, the Polygon blockchain experienced its NFT peak more recently. On the 11th of February, 2023, the Polygon chain amassed over $5.5 million in trade volume for the first time. More than 90% of the transactions came from the Mints marketplace, while the remainder were from OpenSea.
At the start of this year, the Chinese government expressed its desire to launch a national NFT marketplace. This would be the first of its kind globally. Although the Chinese government is known for loathing cryptocurrencies, the country is open to exploring NFTs.
China aims to host a marketplace where digital collectibles will be purchased with the Yuan rather than cryptocurrencies. With the Chinese government showing more interest in non-fungible tokens, expecting a spike in interest is only rational, especially from Chinese individuals yet to join the web3 train.
Further, NFTs are playing a more important role in finance. We can expect more web3-inclined organizations to integrate NFTs into financial operations. In February 2023, Gate.io launched a new NFT collection to raise funds for victims of the Turkey earthquake. The exchange assured users that all digital tokens purchased from the “Earthquake Recovery NFT” collection would be used to support survivors. Aside from fund-raising, NFTs may also be utilized more widely this year as an investment tool and for issuing loans.
With the price hype reduced, we can expect more innovation in the NFT ecosystem this year. NFTs have successfully crept into fashion, digital identity, social media, sports, music, and finance. For die-hard web3 and NFT fans, the goal for the year will not merely be an expectation for price surges across NFT markets. It will be an expectation to improve current use cases and the adoption of NFTs globally.