Retail buyers account for more than 80% of NFT transactions in 2021: Chainalysis

According to the data that Chainalysis classified as “retail” in a recent study, by 2021, more than 80% of non-fungible tokens (NFT) will have a transaction value of less than $10,000.

December 6 report From the blockchain analysis company Chainalysis, titled “2021 NFT Market Explanation” Detailed NFT trading trends throughout 2021. Researchers at Chainalysis studied on-chain data from January to October 2021.

Although retail transactions accounted for more than 80% of all NFT transactions on any given day in 2021, collector-scale transactions increased from 6% in March to 19% on October 31, indicating that as the year progressed, large collections The transaction volume of the family has increased.

It added that institutional-scale transactions accounted for less than 1% of all transfers, but accounted for 26% of actual transaction volume during the same period.

Retail-scale transactions are worth less than US$10,000, while collector-scale transactions are valued between US$10,000 and US$100,000. According to research, an institution-scale transaction is worth more than US$100,000.

The chart below shows the dominance of retail transactions throughout the year from January to October. Since September, collector-scale transactions have increased significantly.

NFT transaction size share-Chainalysis

The share of total transfers is mainly made up of the retail industry, but since March, collectors and institutions accounted for the largest share of NFT dollar-denominated transfers. Collector-scale transactions accounted for 63% of transaction volume, and institutional-scale transactions accounted for 26%, which means that retail transfers accounted for 11% of transaction volume during the time period studied.

NFT transfer volume share-Chainalysis

The researchers compared the NFT market with the broader cryptocurrency market, where retail transactions accounted for a much smaller proportion of total transactions.

“Data shows that compared with the traditional cryptocurrency market, the NFT market is more retail-driven, and the share of retail transactions in all transaction volumes is negligible.”

The profit potential associated with NFTs is one of several factors driving the adoption of cryptocurrencies by 2021. NFT sales reached a record $17.7 billion According to a report by Cointelegraph Research, it is expected to be in 2021.

Only in the past week, NFT sales To 300 million U.S. dollars, nearly a quarter came from The Sandbox’s metaverse land purchase.

In addition, according to Chainalysis data, by 2021, at least $26.9 billion in cryptocurrency will be sent to ERC-721 and ERC-1155 (NFT’s industry-leading Ethereum standard) contracts.

related: Binance Smart Chain and Animoca Brands set up a US$200 million fund for the GameFi project

Whitelisting is the most profitable

Despite spending a lot of money on NFTs, the report states that “only 28.5% of NFTs purchased during the minting period and then sold on the platform will generate a profit.”

Chainalysis recommends whitelisting it to increase the chances of profiting from the newly created NFT.Whitelisted users Casting events on OpenSea 75.7% of the time were profitable, compared with 20.8% of those who were not whitelisted.

“The data shows that it is almost impossible to achieve excess returns on minting purchases without being whitelisted.”

However, the report added that NFTs purchased on the secondary market after minting “profit in 65.1% of the time” and suggested that if they cannot enter the whitelist, it is better to wait for NFTs to enter the secondary market instead of participating in coin minting activities. .

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