A glance at the development of the NFT track in 2022
Research institute:Mint Ventures
Researcher: Jessica Shen
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NFT trading volume and market value from 2020 to 2022
From 2020 to 2022, the NFT industry has undergone many changes in just 2 years. In the eyes of many people, NFT in 2020 is just a concept of castles in the air. By 2022, the asset attributes and financial attributes of NFT have been deeply rooted in the hearts of the people. Looking at NFT from the perspective of transaction volume, we have the following observations:
The overall market value of the NFT market will grow rapidly in 2021, but NFT trading volume will drop sharply during the bear market in 2022
The explosion of PFP on Ethereum in 2021 ushered in the first year of NFT, but this year the volume of NFT transactions on Ethereum has dropped by more than ten times.
The NFT assets of each public chain gradually show distinctive features
NBA Top Shot on Flow, where NFTs started in 2020, and Axie Infinity NFT, which was still on Ethereum at the time. By 2021, NFT assets will fully bloom in various public chains, focusing on Ethereum, and PFP asset transactions with strong cultural and artistic attributes will take the lead, opening up the industry's future imagination of NFT. In 2022, affected by the bear market environment, the NFT market will cool down, and the NFT transaction volume on Ethereum will drop by nearly 95%. However, PFP transactions on Ethereum are still the main theme of the industry. The trading of NFT assets in the chain is relatively active.
From the point of view of the public chain
Ethereum, Solana continue to lead NFT transactions.Ethereum and Solana continue to take the lead in NFT transaction volume, and both PFP transactions are relatively active. However, due to the frequent downtime events of Solana, the development of its ecology is limited, and the damage to user confidence has a certain impact on the NFT transactions on its chain. Influence.
The ecological limitations of NFT OG public chain Flow are highlighted.The old NFT public chain Flow uses NBA Top Shot to provide NFT enlightenment education for the industry. However, by 2022, the transaction volume will drop to less than 300 million US dollars. The NFT ecology of the Flow chain is still growing around sports cards.
Polygon does its part to become the most potential NFT public chain.Polygon has become the public chain of choice for many brands and influencers due to its low cost, relatively stable performance and EVM compatibility, including Starbucks Odyssey, Donald Trump Digital Trading Card and Reddit Avatar, the highly anticipated The NFT of the social protocol Lens Protocol is also based on Polygon.
The explosion of the NFT industry mainly relies on content. Art and creation are the soul elements of NFT at this stage. The market has recognized the cultural attributes carried by NFT and its expectations for future ecological development with real transactions, and has given many PFPs a higher valuation.After the release of NFT, the model of ecological construction around it has gradually become a mainstream method in the industry. A few projects that first establish an ecosystem and then issue NFT have a more user base, and non-ecological NFTs have also won the attention of many users in a short period of time.After the frenzy and bubbles of NFT gradually fade, people will pay more attention to the true meaning brought by its Non-Fungible non-homogeneity. Utility and surrounding ecology will be the strategic focus of the project party, and NFT will be the core carrier.first level title
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NFT-Fi track pattern
compared toThe NFT Industry Landscape in 2021, Subtle changes have taken place in the NFT market structure in 2022. Some exciting tracks have not seen much improvement, and some tracks have unexpectedly spawned many emerging players to participate in the competition. A few trends we see in 2022:
The competition in the trading market is in full swing, and users are becoming more and more understanding
From transaction fees, various token reward subsidies, discussions on royalty rules to AMM mechanism innovation, refresh frequency when aggregators scan goods, and multi-chain deployment of various trading markets, we continue to see NFT trading markets and aggregators in In order to better serve users, we have made continuous attempts and explorations, although some have succeeded and some have failed. Although OpenSea is still the platform with the largest user base and the highest trading volume, we have also seen the emergence of Blur, which is widely praised and welcomed by professional NFT traders. This new entrant seems to have a chance to break this pattern.
Aggregators are not a good business
In 2022, multiple NFT transaction aggregator platforms have emerged in the industry, but from the perspective of timing and transaction volume, the two first-released transaction aggregators, Gem and Genie, have not achieved very good results. When the trading platform is engaged in a battle of hundreds of schools, the market demand and profit model of the aggregator are somewhat questioned by the market.
NFT lending is booming
The wave of BAYC and MAYC purchases brought about by the Yuga Labs airdrop in the first half of 2022 made the NFT lending agreement a leverage tool for some players, and then when the Ape Staking pledge function was launched at the end of December, multiple lending agreements launched matching functions , Pledge income pool, once again attracted many users to participate. In 2022, we can also see that NFT lending is the field where new competitors join the most in the NFT-Fi sub-track. Compared with fragmentation, futures, options and other products, there are a variety of products, and the products are relatively mature.
Fragmentation protocols are still lukewarm
Although everyone knows that making non-homogeneous tokens homogeneous is a way to improve liquidity, the fragmented protocols in the NFT-Fi track have not injected liquidity into the industry as expected. Niftex, which participated in the fragmentation business in the early stage, has ceased operations. Fractional.art also reorganized its business for Tessara this year. Some other fragmentation agreement businesses are also tepid, and have not become NFT liquidity valves as expected.
NFT-Fi machine gun pool is ready to go
The development of the first layer of NFT-Fi protocols such as lending, fragmentation, and derivatives has not yet formed a pattern, but the smart pool business based on these interest-generating protocols is already making sprint preparations. Spice Finance, Insrt Finance, Protecc and other projects are all aiming at this uncultivated wasteland, waiting for the outbreak of NFT-Fi to provide C-end users with more convenient and easy-to-use products. However, the smart pool business is highly dependent on the first-layer NFT-Fi/DeFi protocol, and requires the ability to quickly capture market opportunities, adjust strategies in a timely manner, and update products. In addition, the overall market for the smart pool business in the DeFi field only accounts for 5% of the DeFi protocol. % less, we have to think about how the NFT-Fi Smart Pool market can achieve a breakthrough.
