• In Q3, the NFT sector saw record sales of $10.37 trillion.
• NFT sales on OpenSea reached an all-time high of 3.8 Million in Quarter 3.
• The rise of collectibles is being recognized by the masses, led by CryptoPunks (BAYC), and CyberKongs.

The blockchain epoch is characterized by industry-disrupting and financially rewarding events. Industry trends aligned between DeFi & NFTs in 2020-2021. The latter gained more attention as it is a required requisite within the digital space. The NFT frenzy spiraled into what could be described as the “NFT Autumn” as sales volumes for NFTs surged to $10.7 billion.

Topics Hot: NFTs

As demand rose for NFTs on multiple platforms, the NFT saw a 70% increase in its value in Q3. This was a result of a $10.67 Billion in total sales. What’s also striking is that the and Ronin blockchains capitalized on the market boom, accounting for 77.38%, and 19.53% respectively of the total amounts sold during Q3.

The demand for Ethereum NFTs is increasing, and so has gas prices. This was due to users wanting faster transactions within a shorter time period. It also led to an Ethereum gas battle, in which GWEI could hit 3000 in such a short amount of time.

In Q3, single item sales did not exceed Beeple’s $69.9 million purchase; however, Reuters indicates that collectibles accounted for most of the network’s sales in September. DappRadar reports that CryptoPunks (NBA TopShot), Bored Ape Yacht Club and CryptoPunks are some of the key Q3 contributors to market caps.

A speculative bubble has formed around NFT space, as the NFT’s focus is shifting away from art to more collectibles. NFT Nick, an NFT collector and host of The Nifty Alpha, told Dailycoin in a direct message that “the speculative boom we are currently experiencing will inevitably have many losers,” indicating that people will get “burned” in the short term. Moreover, NFT Nick notes that NFTs, aside from the “fun” speculative investing aspect they offer, will bring “transformation, unlike nothing we’ve seen before.”

To The Flipside

• OpenSea was forced to change their policies after an employee of the company was accused in insider trading.
• If they are causing financial loss, NFT collectors could hinder the perception of makers.
• NFT creators are encouraged to tokenize NFTs as a way of increasing their income.

Multiple Casualties

The market’s focus has turned towards blue-chip NFT collectibles such as CryptoPunks or BAYC; gaming NFTs are reaching new audiences. According to the same DappRadar report mentioned above, registered a total of $2 billion in trading volume in September, noting that their move to the Ronin sidechain helped the game generate “$776 million in revenues.”

Notable personalities, including Snoop Dogg, Shaquille O’Neal, and Steve Aoki, join exclusive communities and showcase their status, or “flex” through their profile pictures. NFTs have received positive reinforcement by showing their support through Twitter avatars (NYSE:).

DailyCoin was contacted by TappySF, a NFT trader and collector. He said that volume in NFT can sometimes be double-sided. His belief is that NFT growth occurs in stages. TappySF cites a floor decline and lackluster sales in the September 2 week period. The NFT sector is benefited by venture capital; however TappySF believes that such capital infusion could result in a decline of transaction volume.

DappRadar notes that a new form of utility is spearheading NFT growth, elaborating that the fact that NFT ownership adds additional perks, including passive income or “additional NFT drops,” to incentivize supporting a project.

In contrast, creative ways to incentivize holders can lead to legal issues, where a token’s value can be deemed a security. For example, in October, an NFT titled DAO_Turtles was banned from OpenSea, after amassing over $2 million in sales, for breaching OpenSea’s terms and conditions.

Why you should care

The convergence of NFTs is creating a mixture of value and speculation. Young investors can fall for different packages and get sucked in by the pump and dumps. It is important to examine the individual NFTs’ value.

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