Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
The market for NFTs has been undergoing an unmatched rally recently, persistently marking new milestones. Just last week, numerous stories of non-fungible tokens being sold at eye-popping prices made headlines across almost all media outlets, making everyone wonder what could be next for this market.
Nevertheless, during this hype, OpenSea’s market share in terms of trading volume really stands out. Reportedly, the company handles 98% of all NFT trading volume, though with a team of only 37 members.
Considering that the hype around NFTs is getting stronger with each passing day, it should come as no surprise that OpenSea processed over $3 billion in trading volume for the month of August alone.
NFT Market Continues to Rally
Earlier this year, the NFT market saw dizzying highs as dozens of renowned celebrities and artists released their first pieces of digital art. However, within a couple of months, the hype started to fade out.
By April, the NFT market was down by 50% on a month-over-month basis. By May, the market had plunged by 89%. However, starting in late July, the hype around NFTs returned to its previous levels.
While trading volume was just around $130 million for the month of June, July saw over $300 million in trading volume for the NFT market. By August, the trading volume reached over $3 billion according to data from Dune Analytics, increasing by over 850%.
During this mania, Bored Apes and CryptoPunks have been two of the most popular NFT collections. Just last week, NBA star Stephen Curry spent $180,000 on a Bored Ape NFT. Earlier this month, Bored Apes also drew the attention of the international art auction house Christie’s, as the auction house announced its first auction of Bored Ape Yacht Club (BAYC).
Bored Apes are so popular that Bored Ape Yacht Club, the company behind those Ape NFTs, decided to launch Mutant Apes. The company released 10,000 Mutant Apes, which were all sold out in a single hour on Saturday night.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.