• Non-fungible tokens gain priority among art fans.
• The NFT Market shows its volatility with the valuation in the third quarter of the year.
The NFT trade has grown in prestige in recent months, and this can be easily seen by browsing through the huge collections available. Non-fungible token trading is estimated to reach $2.14 trillion in capitalization, and the year is not over yet.
As indicated by the decentralized finance agency, Llama DeFi, the TVL price corresponding to the money retained in the protocol exceeds more than $200 billion. The figures suggest that the NFT market increased to over two thousand percent in 2020, but these operations tripled in the initial ten months of the year 2021.
NFT market increases its value in virtual trading
As indicated by NFT Global, one of the many non-fungible token markets available online, virtual auctions has been trending in 2021 with different categories. According to this new NFT Market researcher, the main auctions focus on art, sports, and collectibles. The latter category encompasses over 48 percent of the auctions posted on OpenSea.
Many non-fungible token auction companies have tried to revamp the trade but have so far kept it as it originally operated since last year. The NFT market has become a profitable option for many artists and companies looking to earn extra money publishing a collectible. Even this market has opened the doors for youngsters to create virtual art and auction it at a high value.
The NFT art reaches over 3 million dollars in valuation
With this boom present in the NFT market, some categories such as art mark a milestone. Recently it was shown that NFT auctions in art reached more than $3 billion so far this year. Hiscox Online Art guided the research with ArtTactic, two agencies involved in virtual commerce.
The study showed that non-fungible trade increased in the first quarter of the year, and by August, it had a valuation of $1.8 billion. But with the publication of new pieces between September and October, this figure in its value almost doubled, reaching $3.5 billion.
However, the researchers believe that the result in the third quarter of the year was a loss for the NFT market. According to ArtTactic and Hiscox, non-expendable trade collapsed to over 60 percent in September alone, demonstrating its volatility.
Analysis companies believe this collapse in virtual auctions is due to the increase in pieces exceeding the demand that handles the virtual market. There are many NFTs for the small number of interested people; the published pieces do not have an attractive character for the enthusiast.