Trading in non-fungible tokens (NFTs) climbed to $10.7 billion in the third quarter, an increase of more than 700% on the previous quarter, according to a report by blockchain analytics firm DappRadar.
Growth was powered by a record-breaking August, which generated over $5.2 billion in trading volume, the report said.
DappRadar said “there is not a single but multiple reasons” for the surge. One of these is the way in which NFT projects are “becoming brands,” with celebrities such as Snoop Dogg and Shaquille O’Neal putting their name to communities, strengthening the social aspect of NFTs.
The growth in NFTs is part of a broader expansion of the blockchain industry. The number of unique active wallets (UAW) climbed 25% during the quarter, reaching an average of over 1.5 million daily.
Another growth driver is rise in blockchain-based gaming, which attracted over 750,000 UAW, 140% more than in the previous quarter.
The popularity of blockchain gaming was highlighted this week by play-to-earn game Axie Infinity, which is said to be raising around $150 million in Series B funding at a $3 billion valuation, with the round reportedly led by Andreesen Horowitz.
Jamie Crawley is a CoinDesk news reporter based in London.
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