While the cryptocurrency crash last week saw bitcoin (BTC) lose 30% of its price and almost a million traders liquidated in one day, NFTs saw increased trading volume.
Non-fungible tokens (NFTs) have been rising exponentially, over the past year, and this was reflected across the first quarter of 2021. The digital tokens took off, as more people were spending time at home during lockdowns, and cryptocurrency prices soared.
“Since the crash that started on May 12, the average trading volume for NFTs is approximately $5,8 million per day. While in the first 11 days of the month, the average daily volume was $14,9 million,” says a report from DappRadar.
Despite the market crash, users have been purchasing, trading, and selling an average of 85,787 NFTs, with a total value of $5,8 million per day, the report continued. It indicates an increase of 277%, when compared with January, with an average of 21,815 NFT sales per day.
When Chinese regulators announced a clampdown on cryptocurrencies, the market was sent into turmoil. However, some applications on the blockchain proved to be safe from such fluctuations. Decentralized applications like NFT marketplaces and exchanges like Uniswap kept going as usually.
Since centralized platforms were unable to handle the increased volume brought on by panic trading, users pivoted to decentralized platforms. As this was happening, Ethereum’s (ETH) blockchain was slow and gas fees rose, but platforms like Polygon, Binance Smart Chain (BSC), and more were able to operate as normal.
The hype and success around NFTs saw Christie’s auction house offer the first ever sale of an NFT by a major auctioneer. Sotheby’s followed suit and, since then, a whole host of established artists and celebrities have begun to offer NFTs. Internet entrepreneur Gary Vaynerchuk has even brought out his own line with some unique elements.