NFT trading reached $10.7 billion in the third quarter of this year, which is up 701% from the previous quarter according to a report by DappRadar, a blockchain analytics firm. In August, almost half of the total volume was traded (more than $5.2 billion), accounting for most of the increase in the space, the report said.
According to DappRadar, there is “not a single, but multiple reasons” for the growth of NFT trading. One involves a strengthened social aspect of the non-fungible token. These projects are being endorsed by celebrities such as Snoop Dogg and Shaquille O’Neal, effectively becoming brands in the process.
Unique active wallets up 25%
NFT growth reflects a wider expansion of the blockchain industry. The number of unique active wallets (UAW) increased by a quarter, reaching 1.54 million connecting to a decentralized app daily. In September, there were 1.7 million active UAW. The play to earn space continues to attract gamers despite ups and downs. The DeFi space became more competitive and fun while the NFT space saw record volumes.
Games are one of the main drivers
The games space has been one of the main drivers of steady industry growth. Play-to-earn has attracted millions of people across a number of different blockchains. On average, it drew 754,000 daily UAW during the quarter, corresponding to an increase of 140% from the previous quarter. WAX, Binance Smart Chain, and other networks have benefited from the tendency.
Axie is the undisputed P2E leader
Play to earn game Axie Infinity highlighted the popularity of blockchain gaming this week. It has been reported that Axie is raising $150 million in a Series B funding round led by Andreesen Horowitz. The corresponding valuation is $3 billion. Axie had yet another impressive quarter. Ever since moving to Ronin, the game continues to excel. Ronin is a remarkable sidechain solution. In the third quarter, Axie Infinity surpassed 1.5 million active users. Moreover, its revenue generated in this time was over $776 million, beating out Bitcoin, Binance Smart Chain, and other blockchains.
Modesta Jurgelevičienè, Head of Finance & Research at DappRadar said:
“If I were to sum up Q3 in a single word, it would be “diversification”. The play-to-earn movement became a key driver in the space, NFTs turned towards greater utility and secured record volumes, and the DeFi space got a lot more interesting and competitive with the likes of Solana and Terra.”
