March 31, 2022 · 4 min read
NFT Analysis EP.5 - NFTs Beyond Ethereum
The NFT industry is continuing to attract investment for the purpose of metaverse gaming, art sales, storage of value and other functions. Despite overall valuations of the space dipping since our previous market snapshot, the space has grown in both number of creators and
Current Estimated Market Cap of Ethereum NFT Market: 3.02M ETH (c. $10.1B)
Top Ethereum Collections
Info from Coin Market Cap (Updated 28/03/22)
Recent growth of NFT markets on other chains has not been enough to take Ethereum’s crown. ETH NFT valuations are continuing to grow with BAYC (Bored Ape Yacht Club) recently launching a native ERC-20 token in the form of ApeCoin. The collection’s creator company, Yuga Labs has also recently purchased its main competitor-collection Crypto Punks and received funding from VC firm a16z (Andreesen Horowitz). OpenSea remains the dominant platform in terms of Ethereum (and Polygon) NFT sales.
Current Estimated Market Cap of Polygon NFT Market - 573M MATIC (c. $980M)
Top Polygon Collections
Info from DappRadar (Updated 28/03/22)
With Ethereum’s gas-fees considered by some to be stagnating the ETH-based NFT space, many collections now chose to launch on Ethereum layer-2 scaling solution Polygon (MATIC). Launching MATIC-based collections allows for lower fees and faster transaction speeds.
Despite Polygon’s lower TVL of $4.2B compared to BSC’s $13.1B, Polygon hosts a significantly higher-value NFT market. This is most likely due to its integration and compatibility with the Ethereum network due to its nature as a layer-2 scaling solution.
Ethereum Layer 2 Scaling Solutions
(Info from Mike Fay of Seeking Alpha 11/02/22)
Some Ethereum scaling solutions such as Immutable X were created specifically for the purpose of optimising the experience of minting and trading NFTs.
Binance Smart Chain (BNB)
Current Estimated Market Cap of BSC NFT Market: 455K BNB (c. $200M)
Top BSC Collections
Info from Binance NFT (Updated 28/03/22)
Since its launch in 2021, the NFT marketplace of centralised exchange Binance has also continued to expand into the NFT sector. Binance states that BSC (Binance Smart Chain) now hosts around 3 million NFTs in sectors such as e-sports, collectables, gaming and art. BSC’s seems to be carving out a niche for hosting NFT-related gaming projects.
The most popular collections include the metaverse gaming project SYN City and play-to-earn gaming project CyBall. The most highly used BSC NFT marketplaces include decentralised exchange PancakeSwap and Binance’s own centralised exchange.
Current Estimated Market Cap of NEAR NFT Market: 1.8M NEAR (c. $25M)
Top NEAR Collections
Info from Paras.id (Updated 29/03/22)
While not as large as other chains, layer 1 PoS (Proof of Stake) protocol NEAR has also birthed an NFT space with active creator communities. Last year, famous DJ and producer Deadmau5 launched a NFT-based song on NEAR using Mintbase. Other NFT marketplaces like Paras help facilitate the trading of NEAR-based NFTs. The most popular NEAR collection remains Antisocial Ape Club - likely a reference to Ethereum’s popular Bored Ape Yacht Club.
It is difficult to predict how valuations of the NFT industry will change over the coming months. Despite the recent optimism of most cryptocurrency markets, the NFT market has proven that its value is capable of fluctuating independently of crypto-pricing. Some believe that the NFT space could be ‘topping out’ for a period, with others insistent that the industry is still in its infancy. What is known however is that VC investment firms such as Andreessen Horowitz have been voting with their wallets - and they seem to agree with the latter.
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