Data continues to suggest NFT adoption is still very niche, but recent entrants highlight why there's excitement

On-chainOctober 1, 2020, 10:21PM EDT
UPDATED: March 9, 2022, 5:16PM EST
Data continues to suggest NFT adoption is still very niche, but recent entrants highlight why there's excitement
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After the initial success of CryptoKitties at the end of 2017, which saw the collectible non-fungible token (NFT) produce more than 6000 daily average users, NFTs were lauded as the first mainstream consumer use case for blockchain. Yet, by mid-2018 CryptoKitties unique address count dropped by more than 95%, and the next generation of NFT projects failed to capture anywhere close to the transaction volume and user numbers that CryptoKitties first realized.

We highlighted this dynamic in a research post last year, noting that NFT usage data (unique addresses and transaction volumes) suggested that NFT mass adoption was still 'a long way off.'

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