Chainalysis reports that more than 80% of all transactions for non-fungible tokens in 2021 came from retail buyers. These tokens were less than $10,000. The report said that although most transactions were small in volume, large volumes were driven mainly by collectors and institutions, which accounted for 1% and 19% respectively.
Chainalysis released a report Monday entitled “The 2021 NFT market explained” that detailed NFT transaction trends in the year between January 2021 and October 2021. According to the report, collector-type transactions increased 13% between March & October. Chainalysis reported that this indicated a significant increase in collectors and their activities over the past year. Even though institutional-sized transactions accounted for less than 1%, they still accounted for 26% in trading volume.
A retail transaction of $10K is considered small, while a collector transaction is worth anywhere from $10K to $100K. The research shows that institutional transactions are those valued at over $100K.
Researchers poured over their findings and even compared the NFT market to the wider crypto space. Their findings are:
The data show that NFT is much more retail-driven then the traditional cryptocurrency market. Retail transactions account for a small percentage of total transaction volume.
