NFTs are gaining adoption, and this has led to a surge in their trading volumes over the past few months.
NFT trading volume tops $10 billion in Q3
A recent report by blockchain analytics firm DappRadar has revealed that the trading volume of Nonfungible tokens (NFTs) reached $10.7 billion in the third quarter of 2021. This represents a 700% increase from the previous quarter.
According to the report, the $5.2 billion recorded in August was the highest ever seen in the NFT space. Ethereum remains the dominant blockchain in the NFT space, and its marketplaces led the way.
The report said,
The NFT space generated $10.67 billion in trading volume during Q3, an increase of 704% from the previous quarter. Ethereum and Ronin accounted for 77.73% and 19.53% respectively from the record numbers.
DappRadar stated that there are multiple reasons why NFTs are becoming popular. NFTs are becoming brands. The report pointed out that renowned celebrities like Snoop Dogg, Shaquille O’Neal and Steve Aoki are amongst the latest members to join exclusive communities, further strengthening the social outlook of the NFT space.
CryptoPunks and Bored Ape Yacht Club made NFTs mainstream
Over the past few months, we have covered numerous CryptoPunk and Bored Ape Yacht Club NFT sales. DappRadar pointed out that they are one of the main reasons why NFTs recorded massive growth in the third quarter. “Moreover, blue-chip NFT projects like CryptoPunks or the Bored Ape Yacht Club (BAYC), and the metaverse, have propelled the NFT space into mainstream land,” the report added.
CryptoPunks accounted for 43.4% of the total sales, with the Bored Ape Yacht Club coming in second with 14.5%. The NBA Top Shot marketplace took the third position with 6.5% of the total sales.
DappRadar estimates that the total NFT market cap is currently above $14 billion. The report said,
Considering the top 100 Ethereum collections by trading volume, plus Flow’s NBA Top Shot collection, we estimate an NFT market cap around $14.45 billion.
With the NFT space gaining further recognition and adoption. It would be interesting to see how it performs in the fourth quarter of the year.