Cryptocurrency

NFT Trading Activity Surged by 940% YoY, with the Number of Active Wallets Jumping to 179,000 in October

Published

3 years ago

October 20, 2021

Over the past few months, non-fungible tokens or NFTs have skyrocketed in popularity, drawing more and more attention from investors.

According to data presented by BlockArabia, NFT trading activity surged by 940% YoY, with the number of active wallets reaching 179,000 last week.

Almost 60,000 New Active Wallets in Month and a Half

NFTs or non-fungible tokens have entirely taken over the blockchain space. From games to digital items like artwork, these virtual assets are quickly reaching more and more people.

However, before entering the market, the user should have an assigned NFT wallet to keep their collectibles. They can also use it to transfer NFTs for trading, selling, and buying tokens.

So far, there have been three major spikes in the number of active NFT users, considering the number of unique wallets that either bought or sold an NFT. The first moment, in December 2017, was connected to the popularity of collectible CryptoKitties, when the number of active wallets surged from 800 to over 56,000 in just three weeks. However, this figure dropped significantly in the following months and remained below 10,000 by January 2020.

Statistics show that last year witnessed a rise in the number of NFT users, with the number of wallets reaching 16,800 in October. By January 2021, this figure jumped to over 18,000.

The second major spike in NFT users happened in March when the number of wallets jumped to nearly 50,000 after media reporting the largest NFT sales to date. That month, the digital artist Mike Winkelmann, known as Beeple, sold an NFT of his work for a staggering $69 million at Christie’s. According to the auction house, the sale positioned him among the top three most valuable living artists.

NFT trading activity more than doubled between July and August, with over 116,000 active wallets worldwide. This makes August 2021 the third moment of sudden growth in the market, most likely caused by sales in Axie Infinity, an NFT game that got immensely popular in Southeast Asia.

Statistics show the number of NFT users has continued surging since then, with almost 60,000 new active wallets in the last month and a half only, the biggest jump to date.

More than 425,000 NFT Primary Sales in a Month

The NFT primary market refers to the first sale of an artwork and indicates its baseline value. However, the secondary markets, including all subsequent resales, show a community’s interest and engagement with work, giving creators and collectors a sense of its true potential.

Statistics show the number of primary sales amounted to around 38,800 in October last year. By January, this figure jumped to 56,000 and continued rising. Between June and August, NFT primary sales witnessed a fourfold increase, with the total number surging from around 77,000 to 308,000 in this period.

Last week, the monthly number of NFT primary sales hit over 425,000, nearly 1,000% more than in the same month a year ago.

Statistics show the number of secondary or user-to-user sales increased nearly eleven times year-over-year and hit over 500,000 as of last week.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Cryptocurrency

SEC Director General Lauds KuCoin’s Action, Urges Compliance with National Guidelines

Published

4 hours ago

May 17, 2024

Samed Olukoya

The Securities and Exchange Commission (SEC) Director General, Dr. Emomotimi Agama, has commended KuCoin, a prominent cryptocurrency exchange platform, for its proactive measures to delist the Nigerian naira (NGN) from its trading options.

This move aligns with recent directives aimed at safeguarding the nation’s economic interests and combating illicit financial activities.

In an official statement released by the SEC on Thursday, Dr. Agama expressed satisfaction with KuCoin’s decision to suspend peer-to-peer (P2P) transactions involving the Nigerian currency.

This decision comes as part of KuCoin’s ongoing efforts to adjust its platform to comply with regulatory directives issued by the Office of the National Security Adviser and the SEC.

The SEC’s stance underscores a broader initiative by Nigerian authorities to address concerns related to foreign exchange manipulation and safeguard the integrity of the nation’s financial system.

Dr. Agama emphasized the importance of adherence to established guidelines, emphasizing that regulatory compliance is essential for maintaining national security and economic stability.

The delisting of the naira by KuCoin follows similar actions taken by other cryptocurrency exchanges, including Binance, in response to regulatory scrutiny from Nigerian authorities. These measures signal a concerted effort within the crypto industry to cooperate with regulatory agencies and promote responsible trading practices.

Peer-to-peer cryptocurrency trading platforms have come under increased scrutiny due to their potential for facilitating illicit financial activities, including money laundering and fraud. By delisting the naira and suspending related trading activities, KuCoin demonstrates its commitment to upholding regulatory standards and fostering a secure trading environment for users.

Dr. Agama reiterated the SEC’s commitment to collaborating with stakeholders, including the Economic and Financial Crimes Commission (EFCC), to address challenges within the cryptocurrency space and combat financial crimes effectively.

He emphasized the importance of regulatory cooperation in tackling illicit trading practices and maintaining investor confidence in the market.

Furthermore, Dr. Agama highlighted the SEC’s ongoing efforts to implement the Revised Capital Market Master Plan, aimed at enhancing the resilience and competitiveness of Nigeria’s capital market.

He highlighted the potential of the capital market to drive economic growth and attract foreign investment, emphasizing the need for regulatory measures to protect investors and promote market integrity.

In response to Dr. Agama’s comments, the EFCC Chairman, Ola Olukoyede, reaffirmed the Commission’s commitment to combatting financial crimes and emphasized the importance of regulatory collaboration in addressing emerging challenges.

He commended the SEC’s efforts to enforce regulatory compliance within the cryptocurrency sector and pledged the EFCC’s support in safeguarding Nigeria’s financial interests.

Cryptocurrency

KuCoin Announces Temporary Pause on NGN Services to Prioritize Compliance

Published

2 days ago

May 15, 2024

Samed Olukoya

KuCoin, one of the leading cryptocurrency exchanges globally, has announced a temporary pause on its P2P Nigerian Naira (NGN) services and Fast Buy service via Naira cards.

This move, set to commence from 2024-05-15 08:00 (UTC), aims to prioritize compliance measures within the platform.

In a message addressed to its valued users, KuCoin expressed its dedication to providing a robust and secure trading environment.

The temporary suspension of NGN services is part of the exchange’s commitment to accelerating the compliance process.

During this period, ongoing orders will be completed normally, and all other services on the platform will remain available.

KuCoin assured its users that their assets are safe and secure on the exchange. While acknowledging that adjustments might be required in trading preferences, KuCoin explained that this decision is a step toward enhancing the overall trading experience for its users.

The exchange reiterated its focus on compliance and creating a secure environment for all users. KuCoin aims to resolve the compliance-related matters swiftly and efficiently to ensure a seamless transition back to full functionality of NGN services.

The decision to temporarily suspend NGN services underscores KuCoin’s proactive approach to regulatory compliance, reflecting its commitment to maintaining transparency and trust within the cryptocurrency ecosystem.

KuCoin expressed gratitude for the understanding and cooperation of its users during this period of change.

Cryptocurrency

Crypto Exchange Giant Coinbase Grinds to a Halt in System Meltdown

Published

3 days ago

May 14, 2024

Samed Olukoya

One of the world’s largest cryptocurrency exchanges, Coinbase, has been plunged into chaos as it experienced a catastrophic system-wide outage, leaving traders and investors stranded and unable to access their accounts.

The disruption, which commenced at 4:15 am UTC on May 14, has rendered both the desktop and mobile platforms of Coinbase completely unusable.

Users attempting to access the exchange are greeted with a frustrating “503 Service Temporarily Unavailable” error message, indicative of the severity of the situation.

Coinbase, known for its reliability and user-friendly interface, has been a cornerstone of the cryptocurrency market for years.

However, this unprecedented outage has shaken the confidence of countless traders who rely on the platform for their daily transactions and investments.

Coinbase swiftly notified its user base of the issue through its official status page, acknowledging the severity of the problem and assuring customers that their funds remain secure.

The exchange’s support team took to social media to disseminate updates, pledging to investigate the issue and work tirelessly to find a resolution.

This isn’t the first time Coinbase has faced technical difficulties during periods of heightened market activity.

Just months prior, on February 28, the exchange experienced temporary outages alongside several other platforms amidst a frenzy of trading activity during a Bitcoin flash crash. Such incidents highlight the strain that surges in traffic can place on even the most robust of systems.

While outages like these are undeniably frustrating for users, they often spark speculation within the crypto community.

Some enthusiasts view these disruptions as a bullish sign, interpreting the influx of traffic and subsequent downtime as indicators of growing interest and adoption in the cryptocurrency space.