According to data from blockchain analytics platform Dappradar, NFT transactions have spiked in the past month, reaching a trading volume of $946 million. This will be the first time the NFT market will surpass the $940 million mark since mid-last year.
OpenSea remains the largest marketplace for non-fungible tokens, although trade volume on the platform barely changed in the past month. Interestingly, the CryptoPunks marketplace saw a 33% increase in trading volume, while the volume on Immutable X increased by 19%.
The recent surge in volume represents a 38% increase compared to sales volume in December 2022. Following the general crypto market crash last year, NFT sales plummeted intensely. The sharp decline in sales volume, floor prices, and investors interest triggered excitement amongst NFT antagonists.
The non-fungible token market has been largely criticized since making waves in 2021. Several financial analysts have described the buzz around these blockchain-based tokens as a bubble soon to burst. Interestingly, the recent bear market further strengthened that notion.
January came with relief, though, as trade volume spiked. The Ethereum blockchain still remains the leading blockchain for NFT fans and creators. Trade volume on the Ethereum chain surpassed $659 million last month. The Solana chain is second on the ranks, amassing $85 million in volume, despite almost losing its feet last year.
Notably, protocols with lesser trade volumes saw the highest percentage increase in January. Compared to December, NFT transaction volume on the Polygon chain spiked by a whopping 124%. Similarly, the Tezos chain saw a 150% increase in volume. NFT investors are optimistic about a steady increase in trading activities and floor prices this year.
Will the NFT Market be More Favorable in 2023?
Interestingly, while the NFT market seems to be a fad for some, these digital tokens have attracted interest from multiple firms and organizations.
Last year, Nike and Adidas tested the NFT waters by striking strategic collaborations and creating web3 products. In harmony with the RTKFT studios, Nike created and sold digital sneakers as non-fungible tokens. Adidas also collaborated with BAYC, turning over millions of dollars from its digital collectibles.
NFTs even gained more recognition in utility. In 2022, NFTs were issued to five winners at the FIFA Ballon d’Or event for the first time ever.
With innovative web3 fans in the space, more utilities for non-fungible tokens can be unlocked. If the general NFT market is to perform better this year, the cryptocurrency market will play a vital role. Since crypto prices are indirectly linked with NFT prices, investors would need the crypto bulls to step in.
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