The research team at BestBrokers asked and analyzed raw data from the blockchain to look at the number of NFT transactions and dollar volume on the 6 most important NFT exchanges. It turned out that despite the decline in cryptocurrencies, NFT trading is flourishing with the number of transactions in Q2 2022, which reached a record high of 12 million.NFT transaction volume reaches 12 million all-time high in Q2 2022 despite bear market
NFT trade is booming
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This is the conclusion our research team at BestBrokers.com came to, after looking at transaction data for non-fungible tokens (NFT) on Blockchain. NFTs grew exponentially in popularity in 2021 with the number of NFT transactions exploding from 18,000 in January 2021 to 1.7 million in December of the same year. This is an increase of almost 9500%, and despite the fact that NFTs are closely linked to Blockchain and Cryptocurrencies, trader interest does not appear to be giving up on the bearish trend. On the contrary – we see the transaction figures for Q1 and Q2 2022 exceed the 11 million limit.
In the second quarter of 2022, there was record interest in NFT trading with a total number of transactions across the most important marketplaces * of 12 million, 9% up from the first quarter of 2022 and a massive increase of 2,857% on an annual basis. This jump comes along with the global market dive and shows that bulls are looking for opportunities.
“Despite the lower prices of cryptocurrencies, NFT still offers great opportunities for both long- and short-term trading. When the entire global economy declines in 2022, we will see a huge increase in the number of NFT transactions, which means that traders will find it more attractive than the traditional assets in the current bear market. We should also keep in mind that most NFTs’ prices are in Ether or another ERC-20 cryptocurrency, and the downturn is a great option for some investors to acquire Non-FungibleTokens at a very lucrative USD price.”
Commented Alan Goldberg, analyst at BestBrokers.
Another factor affecting the massive NFT trading volumes is the fact that many investors, who bought cryptocurrencies at much higher prices, refrain from closing their positions in the red. Rather, they prefer to find investment opportunities in alternative cryptocurrencies that give them a better chance of profit.
“While many analysts are discussing cryptocurrency winter and a Bitcoin bear cycle, it is worth considering the fact that cryptocurrencies are not alone in this disorder, and they are likely to bounce back along with the other markets. Trader’s interest, which in one way or another shifts to the NFT market, only proves that blockchain technology is here to stay, and it should not be written off.”
– added Alan.
* Under “main marketplaces” we refer to OpenSea, LooksRare, Rarible, SuperRare, LarvaLabs and Foundation.