The Nonfungible Token (NFT) sector continues to thrive despite the negative conditions that have impacted the cryptocurrency markets in recent years.
According to a recent report from BestBrokers, the number of unique active NFT traders on the Ethereum blockchain rose to over 2.07 million in 2022, which represents a 276% increase compared to the previous year.
This is an encouraging trend, especially given the tough economic climate and the falling prices of most cryptocurrencies.
Despite the challenging environment, the NFT sector remained stable in
terms of trading activity.
The number of trades initially rose to almost 3 million for Q3 2021, but this trend remained stable throughout turbulent 2022, only dropping in Q4 2022 when the Fed rate exceeded the 4% mark for the first time in 15 years.
Despite this setback, the number of trades bounced back in Q1 2023, with a 6.65% increase as of 15 March 2023.
“The fact that NFTs kept traders’ attention during such tough times for
the whole investing world means that there is something special about this
asset. With the crypto prices expected to only rise from this point on, NFT
will become even more mainstream and eventually will bring a lot of younger
investors to the markets,” said Alang Goldberg, an analyst at BestBrokers.
This stable activity in the NFT sector, despite the turbulent conditions,
only strengthens the expectation that NFTs will be one of the most popular
trading instruments in the future.
“We have seen the power of retail investors in the so-called ‘meme stocks’ rallies in the past year, now we see it in the NFT trading” added Mr Goldberg.
Overall, the NFT sector seems to be thriving, and the trend is expected to
continue. As more people become interested in this asset, it will become even
more mainstream and attract a new generation of investors to the markets.
With the crypto prices expected to rise in the future, the NFT sector is expected to become even more popular, making it an exciting space to watch in the coming years.