Non-Fungible Tokens (NFTs) are unique digital assets that use #blockchain technology to certify ownership and authenticity. In 2022, the NFT market experienced a significant surge in popularity, with a record number of new collections created. The rise of #NFTs has been driven by several factors, including the increasing adoption of blockchain technology, the growing interest in digital art, and the emergence of new marketplaces and platforms for NFT trading.
According to our data, 613K new NFT contracts were created in 2022, representing an 860% increase from the previous year. The vast majority of these contracts were deployed on #Ethereum , although other blockchain networks such as #Polygon and #Avalanche also saw significant growth. In total, approximately 85.8 million new NFTs were minted across these platforms.
The popularity of NFTs has led to a growing ecosystem of platforms, marketplaces, and communities that are focused on NFT creation, trading, and ownership. These include platforms such as OpenSea, Rarible and SuperRare, which allow artists and creators to mint and sell NFTs, as well as marketplaces such as Nifty Gateway, Foundation, and KnownOrigin, which specialise in high-end NFT auctions.
The rise of NFTs has also created new opportunities for artists, musicians, and other creators to monetise their work in a way that was previously not possible. By creating and selling NFTs, creators can retain ownership of their work while also generating revenue from the sale of unique digital assets.
Despite the growth and potential of the NFT market, there are also concerns around its sustainability and accessibility. The high energy consumption required for NFT minting and trading on blockchain networks has raised environmental concerns, and the high costs associated with NFT creation and trading have made it difficult for some creators and collectors to participate in the market.
Wash trading is a fraudulent practice that involves buying and selling assets to create the illusion of volume and price movement. It can harm the integrity of the market and lead to unfair advantages for certain players. Our compliance and surveillance tools use advanced algorithms and machine learning to detect and prevent wash trading, ensuring a level playing field for all participants. Wash trading is a growing problem that threatens the integrity of the ecosystem. At bitsCrunch, we're taking action to protect our users and the market.
Check out bitsCrunch 2022 wash trade report: https://bitscrunch.com/#washtrade_reports
Our tools also help NFT marketplaces comply with regulatory requirements and prevent fraud. With the increasing popularity of NFTs, regulatory scrutiny is also increasing. NFT marketplaces must ensure that their platforms are compliant with regulations, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. Our compliance tools help marketplaces meet these requirements, reducing their risk of legal action and protecting their users from fraud.
At bitsCrunch, we are committed to helping NFT marketplaces succeed by providing the tools and support they need to operate in a fair and transparent manner. Our compliance and surveillance tools are just one part of our comprehensive suite of services designed to help NFT marketplaces thrive.
Check out our bitsCrunch wash trade report 2022: https://bitscrunch.com/#washtrade_reports
If you are an NFT marketplace looking to prevent wash trading and protect your users, we invite you to contact us to learn more about our compliance and surveillance tools. Our team of experts can provide a demo of our tools and answer any questions you may have.
Check out our bitsCrunch wash trade report 2022: https://bitscrunch.com/#washtrade_reports
Together, we hope to promote a healthy and sustainable ecosystem for all users. If you want to learn more about our tools or partner with us to protect your users, contact us today.
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