The non-fungible token (NFT) mania spilled over into the second quarter of 2021, with a significant amount recorded in sales.
Data provided by dApps insights platform DappRadar indicates that the top 15 NFT sales during Q2 2021 collectively fetched $37.23 million. CryptoPunks was the highest-grossing NFT, selling at $11.88 million. Edward Snowden was sold for the second-highest amount at $5.27 million.
Most of the trading activity was witnessed around cheaper NFTs while expensive NFT sales slowed compared to early this year. Notably, trading activity was also impacted by the drop in cryptocurrency prices from mid-April.
During the quarter, there was a perception the NFT market was plunging alongside the crypto market. However, the top NFT sales have partly dispelled the perception.
From the top sales, enthusiasts of digital arts are increasingly showing a preference for NFTs that offer added value. For instance, virtual pieces of land and NFTs with DeFi capabilities are growing in popularity. Additionally, NFT games are also rising in popularity.
NFT sales double in Q2
During the same quarter, the number of NFT sales doubled by 111.46% compared to the first three months of the year. Most of the NFT trading volume occurred on the Ethereum and Flow blockchains.
Amid the rising NFT popularity, there is also growing competition in blockchains that host most sales. Notably, established blockchains like Binance and Tezos are making inroads into the NFT space, likely to spice up the sector.
The growth of NFTs has capitalized on the rising popularity of crypto art. NFT leverages the ability to securely value, purchase, and exchange digital art using a digital ledger.
Additionally, unlike traditional physical art, creators of NFTs can prove ownership of their works leveraging digital signs backed by blockchain technology. Therefore, NFT’s can eliminate illegal duplication of digital works.