NFTs baked the best in 2021 on various parameters: Chainalysis Report

economictimes.indiatimes.com:

In 2021, users sent at least $44.2 billion worth of cryptocurrency to ERC-721 and ERC-1155 contracts, the two types of Ethereum smart contracts associated with NFTs, which are bought and sold on specialized marketplaces. According to the data from a Chainalysis report, the value and average transaction size increased in 2021, suggesting that NFTs as an asset category are gaining value as they attract new users.

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The entry of players like Bored Ape Yacht Club and Cryptopunk NFT lifted the euphoria for NFTs to the next level. NFTs, like other crypto assets can be stored in both custodial and non-custodial wallets. Commenting on the report, Anshul Dhir, COO and Cofounder, EasyFi Network said that the report suggests a spurt in NFT trades with few localized spikes owing to specific popular NFT collections. «NFT market witnessed massive growth in 2021, in terms of the crypto trading volume, but it will not be consistent in 2022,» he added. «The year started with bearish sentiments the world over and that could have contributed to a slowdown.» The vast majority of NFT transactions are at the retail level, meaning below $10,000 worth of cryptocurrency. As we see above, larger NFT transactions are becoming more and more common. According to the market participation, NFT holds a lot of potential for retail investors, who do not want to miss the bus. The majority of purchases must be led by retail investors, rather than institutional investors. Vijay Pravin Maharajan, CEO, bitsCrunch said that there's no doubt that NFT trading is more retail, considering that many NFT