Growth of NFT in 2021, what is the reason after all?

Reporters Dainik Reporters
5 Min Read

At the beginning of 2021, the whole world was battling the corona epidemic. At that time, most of us were unaware of Non-Fungible Tokens or NFTs. But as the lockdown of Corona spread its foot in many parts of the world and everyone was imprisoned in their homes. During this time, we learned about the many developments going on online and digitally. And NFT technology was also a big name in the emerging developments. This year more startups have taken place in this sector as compared to all the previous years.

NFT came into existence in late 2015. But according to new data, by the end of this year, about $41 billion was spent on NFTs. Thus, it is a combination of digital artwork and collectibles .This makes this market for goods as valuable as the Global Art Market.

NFT and celebrities

From actors, politicians, Silicon Valley elite rappers to Olympians, celebrities are a new topic of discussion on NFTs. In April this year, Paris Hilton collaborated with designer Blake Kathryn to feature three unique digital art pieces. She was given the titles “Hummingbird in My Metaverse,” “Legend of Love,” and “Iconic Crypto Queen.” As of April 2021, Hilton has sold the entire collection for just over a million dollars. In addition, she has introduced two new real-life pets, “Crypto Hilton” and “Ether Ream,” reflecting Hilton’s passion for NFTs.

In addition, the popular rapper Snoop Dogg is a well-known commentator in the world of NFT. At the end of March 2021, he announced his first NFT collection. It was titled “A Journey with the Dog.” It’s a culmination of the rapper’s early memories that connect via NFT. The collection consisted of eight pieces available in limited quantities, including the original tracks “NFT,” “Snoop Doge Coins,” and “Deez Nuts.” As soon as the NFT was exposed, Snoop Dogg made over $100,000 for just one of the pieces sold. Other celebrities like Lindsey Lohan, Ellen DeGeneres, Shawn Mendes, Eminem soon joined the party.

Over night Rising Popularity

You may also come across some big names in the NFT Marketplace like CryptoPunks and Bored Ape Yacht Club. They reflect the clubby status of their owners and use them as avatars on social media profiles.

NFTs regularly made headlines throughout the year as some of them sold in the millions. This is from #5217 digital art by Crypto Punk, which was recently sold for $5.59 million to Pak’s ‘The Merge’, which was exchanged for $91.8 million went. .The merge was sold to approximately 30,000 collectors, making it the most expensive NFT ever sold.

Another notable name would be Beeple’s artwork, every day’s: the First 5000 Days. This is a collage of 5000 pieces of his work starting in 2007. Beeple artwork  is highly respected within the community as it had a selling price of $69.3 million.

According to a report by analysis, a total of $40.9 billion was poured into the Ethereum blockchain contracts used to create NFTs as of December 15 this year. If seen, the total transaction will be higher if it includes NFTs on other blockchains like Solana. It is rapidly on track to overtake the global art market, which was valued at $50.1 billion.

Increase in NFT

From February to November this year, 360,000 NFT owners held 2.7 million NFTs. According to Chainalysis, only 9 percent of them hold 80 percent of the entire market cap.The NFT market is still in its early years. According to an analysis by FT by blockchain analysis platform Nansen, most new NFT collectors in the secondary market have not yet repaid their purchase costs. According to reports, early NFT collectors have benefited from the rise in the prices of NFTs and the cryptocurrencies traded in them.

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