The NFT purchase price, according to the report, has increased 7x over the third quarter of 2020 to hit $161 up from $23.
A number of these digitally-verified collectible NFTs have been selling out within minutes with most activity happening in Q3, 2020 as the screenshot of one of the more popular collectibles shows below.
Here are some of the key highlights from the report:
NFT market is taking off – NFT volume on Ethereum exceeded $120 million and likely $20m greater as it excludes newer platforms like Rarible
The average NFT purchase price significantly increased over the quarter – NFT price reached $161, the highest since the launch of CryptoPunks and Cryptokitties in 2017
Greater demand this cycle round – There is a growing number of users willing to pay for unique digital collectibles and other non-fungible tokens
NFT as an investment gains broader recognition – The idea of NFTs as an investment category is catalyzed by liquidity mining and a renewed understand of the potential applications of digital ownership through NFTs
NFT liquidity mining sparks off rapid growth – Implemented in different capacities and via partnerships, this is helping inject greater value to tokens
Community token movement is in its early stages – Individual and franchise fan tokens have seen a surge as major brands increasingly become aware of their massive potential to capitalize on their unique asset
Some of the broad categories for capitalizing on the growth of the NFT sector are:
Financial products, derivatives, and indexes
Platform governance tokens
Platform tokens and infrastructure
Here are the report conclusions:
There is a growing shift towards focusing on protocols that provide the greatest value creation for users
Platforms or protocols that provide exclusive experiences and reward early contributors will continue to expand their communities
Revenue streams may not be essential for community growth in the short term, but eventually, users and investors will favor communities that distribute monetary value to loyal constituents
The largest addressable markets – and the most lucrative investments – in the Web 3 space will be platforms that democratize and create communities whether in gaming, music, media, and other industries
The report concludes by saying:
“If there’s a common theme in crypto to be learned from the past few months it’s this: join a community early, provide value, and get rewarded.”
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