NFT market is growing at a phenomenal rate, but is there such a big demand for nonfungibles to draw even more people and businesses to join the industry?
Nonfungible tokens (NFTs) and the marketplaces they trade on have been the talk of the cryptoverse for a while now. Even amid the peak of the bull run, the hype for NFTs is not decreasing. It is arguable to say that the traction they are gaining is at an all-time high right now and continues to climb higher.
The NFT industry generated $10.67 billion in trading volumes during Q3 of this year, marking a 704% increase from Q2, according to a report by DappRadar.
On a year-over-year basis, the trading volumes of Q3 this year are up 38,060%, a number that is exceptionally high for the growth of an entire industry.
Coinbase opened up the waitlist via a blog post announcing its upcoming NFT platform, which is slated to launch later this year. The platform, dubbed “Coinbase NFT,” will initially support the Ethereum-based ERC-721 and ERC-1155 token standards, with plans to expand support to other blockchains in the future.
At the time of writing, there are almost 2.4 million people waiting for early access to the NFT platform. Sanchan Saxena, vice president of product at Coinbase, tweeted that the “insane” amount of traffic for the waitlist temporarily broke the site.
If Coinbase’s user base is anything to go by — around 68 million verified users and 8.8 million monthly active users as of Q2 2021 — the NFT platform could soon provide some serious competition to giants such as OpenSea.
According to data from DappRadar, OpenSea has a rolling 30-day average of 260,000 active users who have conducted a combined total of 2.49 million transactions over the past month.
"Major companies are launching their own NFT platforms because they recognize that digital collectibles are quickly maturing into a new creative avenue that reaches a range of audiences they previously could not connect with before, especially now that NFTs become more mainstream appealing".
As NFTs now grow rapidly on networks other than Ethereum, the adoption could continue to rise for the foreseeable future as larger industry players now begin to place their bets.