Elliptic, a supplier of blockchain research located in London, has disclosed that non-fungible tokens worth more than $100 million were stolen between July 2021 and July 2022. After the introduction of well-known NFT drops in 2021 such as the Bored Ape Yacht Club (BAYC) and Mutant Apes, non-fungible tokens (NFTs) made their first appearance in mainstream media and crypto in 2021, and they were met with explosive enthusiasm and a high return on investments (MA).
The history of NFTs can be traced back to 2012/13, despite the fact that they did not become well known until 2021, when NFT collections began to flourish all over the globe. TNFTs are a kind of cryptographic asset that is stored on a blockchain and are distinguished from other TNFTs by their individual identification numbers and the information that is associated with them.
In contrast to cryptocurrencies, it is not possible to trade or swap them for equivalent value. This is in contrast to fungible tokens such as cryptocurrencies, which are indistinguishable from one another and so have the potential to operate as a medium for monetary exchanges in the marketplace.
Trading in NFTs had a notable surge beginning in the summer of 2021, with daily average sales of over $50 million and over $17.7 billion in NFTs traded for that year, representing an increase of over 200% over the level seen in 2020. Despite the high fees and congestion that plague that network, the majority of NFT trading continues to take place on the Ethereum blockchain.
Since early 2022, a slowdown in the crypto markets has also lately hit the NFT business, with sales dropping in Q2 2022 but still standing at a significant $9 billion.
This is a more recent effect of the downturn in the crypto markets that began in early 2022. While this is going on, competing blockchains like Solana and Polygon are falling farther and further behind, despite intensive marketing efforts and creator money aimed at luring users away from Ethereum.