NFTs Experienced Immense Growth in Early 2021 and it is just the beginning.
Potential of NFT Market
The NFT market has started a rally of rapid growth since early 2021, and it is showing no sign of slowing down. Data from CoinGecko shows that the NFT based projects, as of Aug 2021, have a combined Market Cap of $25 Billion with an average 24 hours trading volume of over $4 billion. However, the industry is still in its infancy stage for adoption, and it is yet to break into the mainstream.
The excitement in the NFT market may be inconsistent, but the technology behind it is here to stay. People are starting to accept the value of rare digital arts like they value rare physical works of art. Since the launch of EIP1559, NFT marketplace like OpenSea have been among the top ETH burners. Various play-to-earn blockchain games and NFT-Metaverse projects are driving the demand in NFT markets. Big stars from the entertainment industry of sports and music are joining the NFT ecosystem. In addition, NFT projects are starting to move into DeFi and cross chain ecosystems.
There are constant developments in the NFT technology as it continually evolves behind the scenes, which give rise to endless opportunities and more applications for this technology. However, the potential of the technology behind NFTs has yet to be fully realized. All of these reasons have the potential to drive mainstream adoption for the NFTs in the coming years.