NFT collectors have been responsible for the inflow of cash of more than $37 billion on several NFT marketplaces. According to the report, the figure recorded at the beginning of this month has equaled the total inflow for last year. In a previous report released by on-chain analysis firm, Chainalysis, NFT collectors were responsible for about $40 million sent to smart contracts of diverse NFT platforms over the last year.
NFT collectors are pushing the market
The NFT market has recorded massive growth since the beginning of this year. However, the growth of the entire industry has been unstable. According to the report, the transaction volume of NFTs has undergone a massive boost but has been on the decline since three months ago. However, the market has since returned to its height in April.
Most market analysts and participants have pointed the finger at the Otherside and Moonbirds project as an integral factor for the jump. Although the NFT market suffered a decline in transaction volume, the amount of NFT collectors involved in the market has seen a massive surge. In the first quarter of this year, about 950,000 new addresses were pinpointed by the on-chain analysis firm.
NFT faces an unstable future
The Chainalysis report also states that about 491,000 of the new wallets have already carried out several transactions dealing with NFTs. This move has set the market on its path to return to see a massive amount of users across the market. In its analysis by continent, Chainalysis mentioned that most of the NFT collectors across different marketplaces are Asians. The list sees North America take up the second position while Europe cements the third-place position.
This report is opposite and contradictory to the recent one released by Wall Street Journal. The platform claimed that NFT sales were on a massive decline as traders moved away from the overfilled market. In the week that the report was released claiming a collapse in the market, NFT collectors were involved in about $1 billion worth of NFT purchases.
However, another factor buttressing the unstable nature of NFT collectors towards platforms was the response recorded by Coinbase after the launch of its marketplace. The platform only accounted for $75,000 worth of transactions on the day of its launch despite growing optimism among traders in the market.