Non-fungible tokens (NFTs) have been one of the most dynamic and prominent parts of Web3 over the last two years. NFTs are blockchain-based digital items whose units are designed to be unique, unlike traditional cryptocurrencies whose units are meant to be interchangeable. NFTs store data on blockchains, and that data can be associated with files containing media such as images, videos, and audio, or even in some cases physical objects. NFTs typically give the holder ownership over the data, media, or object the token is associated with, and are commonly bought and sold on specialized marketplaces.
NFTs saw explosive growth in 2021, but this growth hasn’t been consistent and has leveled off so far in 2022. Below, we’ll explore how the NFT market has grown and contracted since the beginning of 2021.