NFT Sales Surge as Speculators Pile In, Sceptics See Bubble

 NFT Sales Surge as Speculators Pile In, Sceptics See Bubble

The jump in NFT sales was driven by secondary market sales.

Still from video that is sold as NFT, "Year 4, Age 17 ? His Name Is Victor", by artist FEWOCiOUS

HIGHLIGHTS

• NFT market data varies depending on providers' methodology
• Rising cryptocurrency prices may have also played a role in the surge
• NFTs are often valued in Ether

Non-fungible token (NFT) sales surged in August, according to the largest platform for the burgeoning digital asset class, as speculators bet growing interest across the art, sport, and media worlds will keep prices rising.

The niche cryptocurrency asset, which is a blockchain-based record of ownership of a digital item such as an image or a video, exploded in popularity in early 2021, leaving many confused as to why so much money was being spent on items which do not physically exist.

The frenzy has now reached new highs. Sales volumes recorded on the largest NFT trading platform, OpenSea, have hit $1.9 billion (roughly Rs. 14,100 crores) so far this month, more than ten times March's $148 million (roughly Rs. 1,100 crores). In January 2021, the monthly volume recorded on the platform was just over $8 million (roughly Rs. 60 crores).