Trading in non-fungible tokens (NFTs) climbed to $10.7 billion in the third quarter, an increase of more than 700% from the previous quarter, according to a report by blockchain analytics firm DappRadar.
- Growth was powered by a record-breaking August, which saw over $5.2 billion in trading volume, the report said.
- DappRadar said “there is not a single but multiple reasons” for the surge. One of these is the way in which NFT projects are “becoming brands,” with celebrities such as rapper Snoop Dogg and Hall of Fame basketball player Shaquille O’Neal putting their names to communities, strengthening the social aspect of NFTs.
- The growth in NFTs is part of a broader expansion of the blockchain industry. The number of unique active wallets (UAW) climbed 25% during the quarter, reaching an average of over 1.5 million daily.
- Another growth driver is the rise in blockchain-based gaming, which attracted more than750,000 UAW, 140% more than in the previous quarter.
- The popularity of blockchain gaming was highlighted this week by news that play-to-earn game Axie Infinity is reportedly raising around $150 million in a Series B funding round at a $3 billion valuation, with the round led by venture capital firm Andreesen Horowitz.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.