NFTs based on Ethereum were in the limelight of 2021’s greatest sales, capturing the interest of numerous businesses that are now delving into the area of smart contracts in search of enormous profits. Ethereum smart contracts related to NFT marketplaces and collections saw an infusion of approximately $20 billion last year, and the pace has not slowed in 2022.
Non-fungible tokens serve as proof of ownership for a wide range of one-of-a-kind digital products, including artwork, collector cards, avatar clothing in videogames, and more. The process of creating these certified tokens is known as “minting,” and it simply involves using the blockchain to convert a digital file into a digital asset.
Similarly, smart contracts are the driving force behind NFTs. Simply expressed, they are the code and data that enable transferability and ownership evidence.
The Ethereum blockchain now contains some of the largest NFT marketplaces, including OpenSea, Rarible, and Mintable.
According to several analysts and experts, non-fungible tokens will need to demonstrate a functioning side this year for the market to maintain its popularity. Many platforms racing to offer NFT-backed loans have recently begun to embrace this strategy. This service is described on the Ethereum website as follows:
There are DeFi apps that allow you to borrow money with collateral. For example, you may collateralize 10 ETH to borrow 5000 DAI (a stablecoin). This ensures that the lender is paid back — if the borrower does not repay the DAI, the collateral is returned to the lender.
Despite the fact that there hasn’t been much progress in the practical side of NFTs, the market is doing well.
According to a recent Arcane Research analysis, OpenSea remains the undisputed king of all NFT marketplaces.
In 2022 alone, OpenSea’s NFT activity transacted about $2 billion in Ethereum. The 9th of January became the third most profitable trading day for the NFT marketplace thus far, with ETH worth over $261 million recorded.
To date, the two best trading days are August 29th, 2021, with $323 million, and August 30th, 2021, with $267.5 million. In summary, the total NFTs sales volume in 2021 was $24.9 billion.
The chart below depicts this month’s rise in the ethereum NFT marketplaces, which is fighting with August 2021 for the title of strongest trading month to date:
According to the Arcane research, the craze of Yuga Labs projects Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) is to blame for this spike. BAYC recently increased its seven-day trading volume by $50 million, while MAYC increased its trading volume by $50 million.
Furthermore, The Doodles and PhantaBear collections witnessed a 108 percent and 450 percent increase last week, contributing nearly $56 million and $50 million, respectively.
