According to a recent report by Blockchain analytics firm Nansen, one in three non-fungible tokens (NFTs) end up with nearly no trading activity. However, the finding also suggests that the number of minted profitable NFTs is increasing over time. Meanwhile, NFTs with little to no trading activity are on a gradual decline.
Nansen posits that the number of minters surged from approximately 500 to 1.2 million last year. Nansen’s conclusions are based on collectibles on the blockchain with less than 10 sale transactions in the past month. In addition, the findings from the blockchain analytics firm also included those without a listing on a marketplace.
Furthermore, the demography of NFT minters surveyed indicated a gradual rise in retail participants. Some market participants sought to buy and sell the digital assets, while others chose to mint them. A product manager at Nansen, Paul Harwood, weighed in on the minting development in a media session, saying:
“Data demonstrates a trend towards more affordable projects outperforming the initial minting price.”
Harwood also added that:
“This suggests the NFT market is maturing, with the best performing projects able to connect better with the communities and markets underpinning them.”
NFT minting refers to the conversion of digital files into crypto collections or digital assets stored on the blockchain. Minters carry out this process on networks such as Ethereum, Polygon and Solana, and pay fees to do so.
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