- The NFT ecosystem hit escape velocity in 2020, led by Crypto Art which seems to have found product-market fit earlier than other categories. This is perhaps attributable to the clear value propositions to both collectors and creators, whilst scalability constraints are less of a concern as art isn’t moved around on-chain as much.
- There was a net increase of buyers relative to sellers across the major NFT marketplaces.
- ARPUs in the NFT space are higher than their non-crypto equivalents, likely due to:
- a higher willingness to invest when users know that value is not lost forever and
- deeper loyalty through actual ownership in these projects.
- Gas fees driven by the DeFi summer clearly impacted the ecosystem, with a decline in the number of active wallets and number of sales over that period.
- Interestingly, the number of NFTs sold per month declined over the year whilst the average price increased.
- This is likely indicative of gas fees forcing users to focus on buying quality over quantity, whilst smaller transactions on mainnet were prohibitively expensive forcing them to shift to layer 2s such as Matic, or not to transact at all.
- The exchange landsca