TL; DR Breakdown
- Chainalysis report says retailers responsible for 80% of NFT transactions
- The report touched every on-chain data in the sector
- Traders have spent $26.9 billion in the sector this year
The NFT market has continued to witness massive adoption across the crypto sphere. Although the hype has died down a little, traders are still involved in the high-flying sector. But while the presence of institutional investors cannot be noticed in the sector, retail traders have been carrying out the most trades in the sector. This point is bolstered by a recent Chainalysis report where the analysis firm claimed that 80% of transactions carried out this year in the NFT sector were from retail traders.
The Chainalysis report dissects the on-chain NFT data
The analysis firm grouped them as retailers because none of their purchases passed the $10,000 mark. These notable events in the market were explained in the recent Chainalysis report. The firm reviewed all the details from the NFT market from January to October. With retailers carrying out 80% of the transactions during this period, collector transactions accounted for close to 20%.
This is a massive rise because the transactions were represented by 6% two months into 2021. While institutional traders were responsible for the remaining 1% in the NFT sector, the traders were responsible for 26% of the trade volume, the Chainalysis report read. Chainalysis grouped the transactions by how much they bought NFTs. In the report, retailers spent shy of $10,000 on an NFT, while collectors spent between more than retailers but less than $100,000 on an NFT.
Traders have spent $26.9 billion
The Chainalysis report also showed a rise in collectors across the months it reviewed. Chainalysis also noted that although retailers’ transactions were much, institutional traders and collectors were responsible for the most dollar-denominated transfers. This report is a sharp contrast to the current trend in the centralized crypto sector, where retailers have little influence on the volume. Chainalysis also said that another reason the adoption of NFTs skyrocketed was the massive rewards content creators stood to gain. In the records, the NFT sector is expected to finish the year with $17.7 billion in transactions.
The sales of NFT saw platform rake in $300 million last week, with several purchases of lands on Sandbox the triggering factor. The Chainalysis report also stressed that traders had sent $26.9 billion worth of crypto to smart contracts on NFT platforms this year. Despite the massive sales in the NFT sector, the Chainalysis report stated that only 28.5% of the sales saw profits. Chainalysis opined that traders who intend to profit from NFT should first try to get whitelisted.
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