Analysis: 2021’s Top 20 NFT Traders Pocketed $185M as Market Went Mainstream

2021 was the year of the NFT, literally. Just ask Collins Dictionary, which made the term its word of the year. 

The crypto asset went mainstream last year, according to a new report from blockchain analytics firm Nansen. Count the signs, from Adidas’ NFT drop to payment network giant Visa’s $150,000 purchase of a CryptoPunk.

“This year NFTs achieved a mainstream breakthrough. Despite spikes in volume, a sustained interest from first-time buyers suggested a new market in the making,” Nansen’s report said.. “As the market matured, reputable NFT projects with high liquidity became valuable commodities.”

NFT trading peaked August 29, hitting over $422 million in daily sales. The volume likely lined the pockets of the year’s top 20 NFT traders, who amassed $185 million of ether.

Breakout NFTs, including some of the biggest projects by market capitalization, include CryptoPunks, Bored Ape Yacht Club, Art Blocks, Sandbox’s LANDs, Cool Cats and Vee Friends. The top-tier will vy to remain their standing as torrents of newcomers enter the market.

Though NFTs started as digital art, the rise of  blockchain-based gaming has given the asset class an additional tailwind. 

“Gaming offers a compelling use-case for NFTs — it allows players to truly own their in-game items, enjoy the value accrual of the in-game economy, and at the same time, earn a living by playing,” the report said. 

Industry leader Axie Infinity, for example, generated $17.5 million in revenue in one day in August, translating to annual revenue of $1.3 billion. 

In 2022, Nansen’s research team predicts that there will be a “growing trend of investment in metaverse and gaming utility,” adding that “NFT markets thrive on innovation that is unpredictable as it is fun.”

Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.

The post Analysis: 2021’s Top 20 NFT Traders Pocketed $185M as Market Went Mainstream appeared first on Blockworks.

Source: https://blockworks.co/nfts-look-to-build-on-banner-2021/