NFT collectors sent $37 billion to marketplaces in 2022, which is already nearly the same as in 2021

Collectors of non-fungible tokens (NFTs) have already sent more than $37 billion to NFT marketplaces this year (as of May 1), a number nearly exceeding the total for all of 2021.

According to a report by Chainalysis, investors sent $40 billion worth of cryptocurrencies to smart contracts connected to NFT collections and marketplaces over the course of 2021.

Source: chain analysis

Since the beginning of last year, NFT transaction volume has grown significantly, but overall industry growth has been patchy.

The report indicates that NFT transaction volume is sporadic and has been declining since mid-February. The NFT market has briefly rebounded since mid-April – most likely due to the recent hype surrounding Moonbirds and Bored Ape Yacht Club’s Otherside metaverse project.

Despite short-term fluctuations in NFT transaction volume, the number of people around the world buying and selling NFTs remains high, with 950,000 unique addresses buying or selling NFTs in Q1 2022.

As of May 1, Q2 2022, 491,000 unique addresses have transacted with NFTs, putting the market on track to continue its growth trend in the number of participants.

By analyzing the web traffic of the major NFT marketplaces, Chainalysis found that NFTs attract users from all corners of the world, with Central and South Asia taking the lead, followed closely by North America and Western Europe.

Source: chain analysis

Related: NFT sector expected to move around $800 billion over next 2 years: report

The report contradicts the conclusion of a recent Wall Street Journal article that claimed NFT sales were flat. The article states that “the NFT market is collapsing,” but that same week, the top five NFT collections alone accounted for more than $1 billion in primary and secondary sales.

Chainalysis’ report also comes a day after Coinbase’s launch of its in-house NFT marketplace failed to garner much interest. On-chain data showed that on May 4th – the first day of trading – there were just 150 transactions, with just $75,000 in volume moving across the platform.