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Penguins and apes drive an 8-fold increase in NFT trading

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  • Non-fungible tokens, or NFTs, are already trading at multiples of what they were earlier this year when the phenomena sparked frenzied headlines in the mainstream media and gasps among art dealers
  • With such development, the frenzy exemplified by the artist Beeple’s $69 million sales of his piece every day’s the First 5000 Days at Christie’s may have only been a taste of what the business has to offer
  • Because NFTs are generally priced in ETH, a sharp increase in the price of ETH might dissuade new participants to the NFT marketplaces, according to the research

Non-fungible tokens, or NFTs, are already trading at multiples of what they were earlier this year when the phenomena sparked frenzied headlines in the mainstream media and gasps among art dealers. According to a study by crypto intelligence firm Coin Metrics, the number of sales on OpenSea, the largest NFT marketplace, hit more than 60,000 per day during the previous week, over eight times the peak in March. OpenSea’s trade volume during the last 30 days was $1.22 billion, up 933 percent over the previous 30 days, according to another data tracker, DappRadar.

With such development, the frenzy exemplified by the artist Beeple’s $69 million sales of his piece every day, the First 5000 Days at Christie’s may have only been a taste of what the business has to offer. If NFTs attract the same level of outside interest as they did earlier this year, there might be an even larger surge ahead, Coin Metrics said. The selling of NFT compilations like CryptoPunk, Bored Ape Yacht Club, and Pudgy Penguins contributed to the recent surge. How to play the trend is a difficult topic for bitcoin traders. The impact of the NFT market on the price of ether (ETH, -8.21 percent), the native cryptocurrency of the Ethereum blockchain, where most of the NFT ecosystem lives, is a chicken-and-egg problem.

Because NFTs are generally priced in ETH, a sharp increase in the price of ETH might dissuade new participants to the NFT marketplaces, according to the research. Higher NFT sales, on the other hand, may help Ethereum attract new users. According to Coin Metrics, OpenSea sales and ether grew in lockstep in March and throughout the recent NFT bubble. The ETH price peaked in other months, like in May, while NFT sales on OpenSea dropped. 

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