Trade in so-called non-fungible tokens, or NFTs, has grown rapidly in recent times. In fact, the NFT market tripled during the recent crash in cryptocurrency market prices. This is reported by Dapp Radar on May 27:
Last week saw “one of the biggest crashes ever” in the crypto market with many prices losing more than 50% of their value. Nevertheless, trading in NFTs continued to grow strongly. “Collectors, traders, gamers and artists continued to trade, sell and buy NFTs as if a crypto crash never happened,” said Dapp Radar.
In January, the average number of NFT transactions was 21,815 per day. In May, this rose to 82,373 transactions per day, an increase of nearly 280%. After the price crash, which started on May 12 with a tweet from Elon Musk, the average number of NFT transactions rose further, to a whopping 93,809 per day.
However, the falling prices caused the average price for an NFT to fall. In the first 11 days of May, $14.9 million worth of NFTs traded on average per day. It then fell below $6 million a day, down 60%. Also, the average price for a single NFT fell 61% from $180 to $70.
In addition, DappRadar reports that more and more NFT platforms outside Ethereum (ETH) are emerging. Ethereum regularly faces high transaction costs due to the enormous pressure on the network, which makes trading in smaller NFTs unprofitable.
In related news, meme.com announces that it has raised $5 million to establish an NFT marketplace for memes.