Non-fungible tokens, popularly known as NFTs, have been the talk of the town in the realm of digital assets. The journey of NFT trading volume from 2021 to 2023 paints an intriguing picture, encompassưing significant growth, fluctuations, and recovery. Let’s unpack this thrilling ride.
Breaking New Ground: NFT Market in 2021
In 2021, non-fungible tokens burst onto the scene, solidifying their place in the mainstream. Capturing the world’s attention, the NFT trading volume reached an impressive total of $25.1 billion, marking a critical milestone in the digital asset space.
Notably, the first half of the year alone witnessed a surge in NFT sales volume to a staggering $2.5 billion. The digital collectibles market, a specific subcategory of NFTs, emerged as the quickest growing segment, further fueling the NFT explosion.
TOP NFT projects in 2021
Axie Infinity
Axie Infinity was one of the biggest NFT success stories of 2021. It is a Pokémon-inspired universe where users can battle, collect, raise, and trade token-based creatures known as Axies.
The gameplay involves players building teams of Axies and earning rewards through playing daily quests and arena battles. This play-to-earn model made Axie Infinity hugely popular, especially in developing countries where it provided an alternative source of income.
By the end of 2021, Axie Infinity had over 1.5 million daily active users. Its smooth gameplay, economic incentives and early-mover advantage helped it dominate the NFT gaming space last year.
CryptoPunks
Launched in 2017 by Larva Labs, CryptoPunks was one of the earliest and most well-known NFT projects. It comprises a collection of 10,000 unique collectible characters with proof of ownership stored on the Ethereum blockchain.
Due to its first-mover status and limited supply, CryptoPunks gained immense popularity among NFT collectors. Several Punks were sold for millions of dollars in 2021, with the most expensive one fetching $11.8 million. Its historic success cemented CryptoPunks as a blue-chip NFT brand.
Bored Ape Yacht Club
Bored Ape Yacht Club (BAYC) took the NFT world by storm in 2021 with its collection of 10,000 ape NFTs. Each Bored Ape is unique and programmatically generated from over 170 possible traits.
The project amassed a huge following within months of its launch, with celebrities like Justin Bieber and Jimmy Fallon joining as owners. BAYC’s exclusivity, viral marketing and large community made it one of the most influential NFT projects of 2021. Several Apes were resold for over $1 million last year.
A Slight Setback: NFT Market in 2022
The year 2022 brought forth a few challenges to the booming NFT market. A slight dip was observed in the trading volume, which recorded around $24.7 billion, marginally less than the previous year’s $25.1 billion.
The highest weekly volume of 2022 was observed in May, standing as a testament to the market’s resilience. However, a significant development occurred in May and June, when the NFT trading volume failed to surpass the $1 billion mark for the first time since December 2022. But even in the face of declining volume, the number of individual users and transactions stood firm, demonstrating the robust interest in NFTs.
TOP NFT projects in 2022
The year 2022 was a remarkable period for Non-Fungible Tokens (NFTs), with several projects making significant strides in the digital asset space. Here are some of the outstanding NFT projects that made waves in 2022.
Silks
Silks emerged as one of the top NFT projects in 2022, bridging the gap between the real world and the NFT space. It offered a unique blend of digital and physical assets, capturing the attention of both traditional and crypto investors.
Doodles
Doodles, a vibrant collection of 10,000 unique, algorithmically generated characters, made its mark in the NFT world. The project’s playful aesthetics and strong community focus made it a favorite among NFT enthusiasts in 2022.
Moonbirds
Moonbirds was another project that gained significant attention in 2022. The project’s unique concept and engaging community activities made it a standout in the NFT space.
Women Rise
Women Rise was a unique NFT project that aimed to empower women artists in the NFT space. It gained popularity for its strong message and the high-quality art it showcased.
VeeFriends
VeeFriends, an NFT project by Gary Vaynerchuk, also made significant strides in 2022. The project offered a unique blend of digital artwork and real-world benefits, including access to conferences and other exclusive events.
Flyfish Club
Flyfish Club was another notable NFT project in 2022. It stood out for its unique concept and the high level of engagement it offered to its community members.
Awesome Possums
Awesome Possums was one of the best utility NFT projects released in September 2022. It was a community-focused NFT project that offered various benefits to its holders, making it a popular choice among NFT enthusiasts.
Nouns
The Nouns NFT project, created in 2021, continued to be popular in 2022. Each Noun is a unique, programmatically generated character that is minted every day, making the project a dynamic and ever-evolving collection.
Reddit Collectible Avatars
Reddit Collectible Avatars was another popular NFT project in 2022. The project allowed Reddit users to own unique digital avatars on the Ethereum blockchain, further integrating the world of social media with NFTs.
These projects, with their unique concepts, strong community focus, and innovative use of blockchain technology, have significantly contributed to the growth and evolution of the NFT space in 2022. They have set the stage for more innovative and exciting developments in the world of NFTs in the years to come.
Bouncing Back: NFT Market in 2023
As we moved into 2023, the NFT market began showing signs of recovery. The first quarter of the year saw NFTs bouncing back with a robust performance, recording a remarkable 137.04% increase in trading volume. This took the total to $4.7 billion, the highest since the second quarter of 2022.
However, March 2023 witnessed a slight stumble with a 15.65% decrease in NFT trading volume. Regardless of this dip, the market’s overall resilience was still apparent, with the number of individual users and transactions remaining steady.
TOP NFT projects in 2022
The NFT space continues to evolve at a rapid pace. While 2022 saw the rise of many innovative projects, the new year promises to introduce even more exciting developments. Here are some of the top NFT projects to keep an eye on in 2023:
Azuki
This collection of 9,999 anime-inspired avatars gained immense popularity in 2022. With plans for metaverse integration and exclusive community perks, Azuki is well-positioned for further growth.
Moonbirds
With a devoted following and constant engagement, Moonbirds has cemented its status as a blue-chip project. 2023 could see the launch of new utilities to enhance the experience.
Doodles
This vibrant collection of 10,000 algorithmically generated doodles charmed the community with its playful vibes. Future roadmap additions may boost its potential.
DeGods
As a play-to-earn game built on the Polygon network, DeGods offers an enticing combination of NFTs and gaming. It could emerge as a leader in the NFT gaming niche.
Mutant Ape Yacht Club
A spin-off of the popular Bored Ape Yacht Club, MAYC captivated collectors with its unique traits. Its dedicated following bodes well for the future.
CrypToadz
With charming 3D artwork and a dedicated team, CrypToadz has attracted a loyal fanbase. Its metaverse and gaming plans make it one to watch.
CyberKongz
As an NFT collection and play-to-earn game, CyberKongz offers an immersive experience. Its ambitious roadmap could help it break out in the new year.
Pudgy Penguins
With adorable penguin characters and community rewards, Pudgy Penguins has shown early promise. Further developments may boost its potential.
These are just a few of the many exciting NFT projects that could capture mainstream attention in 2023. As the space evolves at a rapid clip, new gems are sure to emerge throughout the year.
Takeaways from the NFT Trading Volume Journey
In a nutshell, the journey of the NFT trading volume from 2021 to 2023 has been nothing short of a rollercoaster ride. With its significant growth, slight dips, and steady user interest, the NFT market continues to be a fascinating space to watch. Stay tuned for more updates on this exciting journey!
