market for Irreplaceable tokens or NFTs may slow down in 2021 and into the new year following a strong rise in NFT activity.
The health of the NFT market is itself a fascinating data project. Historical price volatility for crypto tokens and other blockchain-based assets is high, meaning you can be tricked into triggering a trend early on, only for the markets to turn around and look stupid.
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And yet, we are happy to uncover several data points that indicate that the NFT market is slowing on several axes, at least indicating that growth in the hot zone has stalled. This is not just an academic moment; There are a lot of startups in the NFT space, which means that there is an ocean of venture capital and non-private market shares in projects that are directly or indirectly related to the demand for non-fungible tokens.
The starting point is, of course, what we care about the most, and there are more players in this area than OpenC.
So, let’s look at data from the Dune platform – about this company and its latest fundraiser – and other sources to get an idea of NFT’s activity. We also echo Coinbase’s comments on NFTs in connection with its latest earnings report and will attempt to draw conclusions about where the NFT market is today – and what that means for tech startups that are scouring the public markets all the way down to unique blockchain assets. .
What does the data say?
Looking at NFT volume, the leading indicator is OpenSea. The well-funded unicorn startup has established itself as a leader in the NFT market with an impressive market share. So if we look at the OpenC data, it can give us a strong, albeit incomplete, indication of where the NFT market is heading.
We rely heavily on DUNE data these days. Dune, also a unicorn startup, raised $69.42 million earlier this year. This funding event gave Dune a $1 billion valuation. Basically, Dune is a blockchain data analysis platform that provides both free services and paid accounts. It is well known in the crypto community due to the depth of the data, as well as the fact that information can be easily accessed and stored in public dashboards created by the community.
One such panel was created by Richard Chen, an investor in cryptocurrency venture group 1confirmation, which focuses on OpenSea data, giving us insight into the platform’s volumes. For example, note the following: