The majority of nonfungible token (NFT) purchases in the first 10 months of 2021 have been valued at less than $10,000, categorizing them as “retail” in nature, according to a Monday (Dec. 6) report from Chainalysis.
From January through October, users have spent upwards of $27 billion worth of cryptocurrency on two types of Ethereum smart contracts affiliated with NFT marketplaces and collections.
While Chainalysis data illustrates that the number of active NFT collections surpassed 2,300 the week of Oct. 24 — up from 193 at the beginning of March — most buyers are spending less than $10,000 on NFTs. Transactions under $10,000 are deemed retail, according to the report.
However, more expensive “collector-sized” purchases, valued at $10,000 to $100,000 worth of cryptocurrency, are on the rise. In March, this NFT segment accounted for only 6%, while today, it has grown to account for nearly 20% of all NFT transactions.
NFTs have skyrocketed in popularity in 2021, with major brands, as well as musicians, artists and more offering exclusive content on the digital assets. Last month, AMC Theatres offered 86,000 limited-edition NFTs in conjunction with the recent release of “Spider-Man: No Way Home,” according to PYMNTS.
See also: AMC Offers Limited-Edition NFTs to Spider-Man Fans
NFTs are also popular in the art world. More than 5% of Sotheby’s and Christie’s contemporary art sales so far this year have been derived from NFTs, according to PYMNTS. Together, the auction houses sold a total of $165 million in the digital assets in 2021.
The auction houses are negotiating with buyers and working to source NFTs directly from artists and other creators.
Read more: About 5% of Sotheby’s, Christie’s Contemporary Art Auctions Are NFTs
Underlining the growing demand for NFTs, Coinbase, the cryptocurrency exchange, announced in October that it would soon launch a marketplace for NFTs.
Related: NFT Roundup: Demand for Digital Image Assets Moves Deeper Into Mainstream
Also this fall, Visa announced a collaborative effort with artist Micah Johnson, the former second baseman and outfielder for the White Sox, Dodgers, Braves and Rays, to implement a program that would support artists in developing NFTs, according to PYMNTS.
See more: Visa Creates Program to Highlight, Promote NFT Artists
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