NFT sales were massive hit in 2022 and nearly matched the 2021 peak, as per the data from DappRadar
Despite months of declining sales and falling prices, overall NFT sales were massive hit in 2022 and nearly matched the 2021 peak, according to data from DappRadar. A buzzy start to the NFT market in 2022 buoyed the year-end tally and helped make up for the several weaker months that followed, the data suggests. The NFT market generated around $24.7 billion worth of organic trading volume in 2022 across blockchain platforms and marketplaces, DappRadar shared with Decrypt. That’s a slight dip from the $25.1 billion total recorded in 2021 as the NFT market surged in activity and interest as tokenized collectibles first became more than a niche interest. Here are the 10 reasons why NFT sales were massive hit in 2022, despite the market crash.
Reason 1:
First and foremost, NFT investors see long-term value in them and believe they will appreciate over time. NFTs are digital assets and can be anything online, such as art, collectibles and even memes. Certain NFT projects are considered rare, like CryptoPunks, which was one of the first NFT projects. CryptoPunks are highly respected within the community and commonly sell for six or seven figures each.
Reason 2:
Sales peaked in August, then declined in September, October and November before picking up again in December, data from the biggest NFT marketplace, OpenSea, showed. This does not appear to be correlated with fluctuations in the price of cryptocurrencies, which are often used to buy NFTs, as bitcoin and ether rose in the September to November period.
Reason 3:
Owning NFTs also offers a form of social status in the crypto community, just like a Rolex or a Lamborghini does in “real life,” notable NFT collector Gmoney previously told CNBC Make It. Like most people in the crypto community, he is known only by his online alias and prefers to remain anonymous.
Reason 4:
NFTs are often seen as an investment opportunity due to their unique characteristics. Because they cannot be divided, each individual NFT can be worth more than any of the cryptocurrencies they’re bought with. This makes them a desirable investment for those looking to make a profit, since their value depends heavily on demand and how much someone is willing to pay for it.
Reason 5:
NFTs also offer some form of utility to holders. These utilities can range from exclusive access to content, shows, or meetups. Some NFT collections also offer access to online educational materials or partnerships with other NFTs. The list is endless.
Reason 6:
NFTs can be seen as a digital store of capital due to their ability to preserve value. Because they’re not subject to inflation like traditional currencies, certain NFTs offer a safe and stable investment option. This isn’t always the case, however, with some experts claiming that most current NFT offerings could lose up to 90% of their value in the years to come.
Reason 7:
One of the benefits of investing in NFT is that it can be more advantageous from a tax perspective than traditional stocks or bonds. This is because NFT is considered to be a property, and as such, it is subject to capital gains tax.
Reason 8:
NFTs are a secure way to verify digital ownership. Each individual NFT is tracked and verified on a decentralized blockchain, making it practically impossible to forge or steal. This makes them ideal for safeguarding digital rights, especially in the case of physical assets like real estate.
Reason 9:
NFT is an efficient way to store value. As such, it is not subject to inflation. Additionally, NFT can be used to create scarcity, which can drive up the value of the asset.
Reason 10:
By Staking NFTs you can generate passive income. This is because NFTs can be staked to earn interest. Additionally, Nfts can appreciate in value, which can provide you with a capital gains income.
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- Source: https://www.fintechnews.org/10-reasons-why-nft-sales-were-massive-hit-in-2022-despite-market-crash/
