NFT transaction volume has repeatedly hit new highs. Which trends and projects deserve attention?

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NFT game projects with high-frequency, low-value transactions have begun to collapse in the foundation layer of Ethereum, and the transaction volume of high-priced encrypted collectibles has increased tremendously.

Written by: Piers Kicks, Partner of Delphi Digital Translation: Lu Jiangfei

It is undeniable that the current NFT market is very hot. Let’s take a look at the NTF market’s sales in the past 30 days. It has repeatedly hit new highs. Every day, millions of dollars are transferred between new and old projects.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

Many big players in the industry have also begun to actively interact with NFT audiences, such as the owner of the NBA Dallas Mavericks, billionaire Mark Cuban, football player Mesut Ozil, and American models, Movie star Lindsay Lohan (Lindsay Lohan) and so on.

Recently, Christie, a world-renowned auction house, announced that it would auction the first purely digital artwork created by artist Beeple. This is also the first time that a large auction house provides auction support for purely digital artwork.

The volume of NFT transactions on Ethereum has repeatedly hit new highs, but it is also congested

At the basic network level, we also see unprecedented transaction volume. At the end of 2017. At the peak of the “cryptocat” CryptoKitties frenzy, the transaction volume reached more than 2 million US dollars within 24 hours. But on Valentine’s Day last weekend, NFT transactions on Layer 1 alone exceeded $6 million.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

The above figure shows the NFT transaction volume and average transaction size that occurred on the bottom layer of Ethereum, and you will find that the values ​​have shown a sharp increase trend.

As transaction fees continue to increase, some smaller transactions are unlikely to be justified.

Let’s first take a look at the congestion that the CryptoKitty DApp once brought to Ethereum. During the peak period of congestion a few years ago, the single-day transaction volume of CryptoKitties exceeded 50,000, resulting in gas fees reaching 60gwei. You know, the transaction volume of CryptoKitties once accounted for 15% of the total Ethereum transaction volume. Last week, the average gas cost of Ethereum has reached a peak of 250 gwei, which is four times higher than the highest level in December 2017!

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

Although this is a good sign for the entire Ethereum network, the high cost has seriously hindered many NFT activities and forced people to find other better solutions. But things are not that simple, and competition in this field is fierce.

What are the NFT expansion plans?

According to a recent market analysis report, a number of Ethereum expansion solutions for NFT will be released soon, especially the current high-cost network environment is accelerating the market’s demand for expansion solutions.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

At the beginning of February, the blockchain game Axie Infinity successfully launched the Ronin mainnet of the Ethereum sidechain, and was the first NFT project to do so.

In the 20 days or so since its launch, the Axie Infinity native token AXS has increased by more than 160%. At the same time, the project also claims to have created the largest NFT sales in history. People seem to like this market development trend.

However, Beeple’s recent auction at Christie’s may break AXS’s NFT sales record.

In addition to some custom functions, Immutable and Matic Network also provide general expansion solutions. In this rapidly expanding ecosystem, the best option for Ethereum may be to maintain its NFT market share. I noticed that Flow Blockchain has achieved early success, and they will become a true industry competitor. In fact, Flow has been continuously consolidating its market position and is now a “new force” in the NFT ecosystem-a very smooth fiat currency deposit and withdrawal gateway, a seamless wallet experience, a booming market, and Market rumors about the rise of its tokens, all of which have accelerated the growth of the Flow project.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

Another issue that needs attention is that some game projects that need to perform high-frequency and low-value transactions have begun to collapse in the Ethereum base layer. Many popular projects have left Ethereum and migrated to Matic (Polygon), such as Aavegotchi, Decentral Games- Be The House, and Neon District.

The figure below shows Matic’s Quickswap, a decentralized exchange similar to Uniswap, in which Aavegotchi’s native token GHST has become the second most liquid token trading pair on the exchange.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

As a highly anticipated project, Immutable has begun to attract people’s attention, as well as Illuvium. These projects are very promising because they are basically the rare team that focuses on building general solutions based on Ethereum, aiming to deal with the first-hand challenges of building large-scale blockchain games (such as Gods Unchained).

Another thing is also very important. We must consider some very realistic possibilities. That is: if the second-tier Ethereum solution cannot be implemented smoothly this year, or cannot provide a better user experience, then projects like Flow may Provide support for multiple categories of NFT projects and gain more market share.

High-priced encrypted collection secondary market sales blowout

Of course, I have reason to believe that for low-speed, high-priced trading activities (such as top collectibles and artworks), then the concerns raised above may not be so important.

The following figure shows the sales of the top ten encrypted collections in the secondary market before January 26 and February 16. We can make a comparison.

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

NFT transaction volume has repeatedly hit new highs. Which trends and projects are worth paying attention to?

It should be noted that the secondary market transaction volume of some of these projects has seen huge growth in less than a month. For example, NBA Top Shot has increased by 2.3 times, The Cryptopunks has increased by 2.7 times, and Hashmasks and artblocks have increased by two. A new entry into the list.

Is it a good time to enter?

The NFT market is developing rapidly, but in the current market environment, we need to be cautious about industry expectations, which is very important. Just like the “crypto cat boom” that appeared in 2017, with the influx of funds, many NFTs have indeed obtained coveted prices, but when the music stops playing, many NFT assets may fall into a long-term cooling-off period. It may be difficult to change hands at a high price.

From this perspective, now seems to be an excellent time to enter the NFT market, because the interconnected networks (interwebs) have awakened the huge potential of NFT, and the technology can be widely used in games, creative economy, and new forms of IP monetization. Application, the prospect is exciting.

NFT transaction volume has repeatedly hit new highs. Which trends and projects deserve attention?

But in the second major NFT “hype” cycle, we may not be able to fully realize this potential. Of course, there will be opportunities, and the enthusiasm for continuous training will not be compromised, but you cannot seize all the opportunities, so you must find a project/creator that resonates with you, and this is your best choice.

In fact, there are not only “old guns” in this industry, but also “xiaobai” who just entered the market. It is expected that millions of new people will enter this field in the next few months or years, and more and more people will know and be familiar with this field.

If we want to convert the market’s interest in NFTs into long-term support for consumer-oriented blockchain applications, we need to “maximize” current opportunities on an unprecedented scale and take corresponding actions.

The 2017/18 bear market did bring a lot of grievances to the market, and there were many hot potato projects that followed, and these problems have been unforgettable for investors to this day. Therefore, we need to learn lessons from past failures to ensure that we do not lose ourselves. This is in everyone’s interest.

The worst-case scenario is that we personally destroy a new generation of users when we gain momentum. However, now I have gone through that period of bad luck and depression enough, I think everyone understands.

So go ahead and continue to conquer!

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