The NFT market is recovering after a disappointing 2022
The non-fungible token (NFT) market is recovering after a disappointing end to 2022. According to a new report by DappRadar, a platform specializing in the analysis of decentralized applications (dApps), at the beginning of the year, a sharp increase in both the prices and the number of NFT units sold on marketplaces was recorded.
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In January, 9.2 million transactions were made, which is 37% more than in December. This became the highest indicator of the market in the last six months.
The volume of trades in dollars also increased, reaching $946 million, which is 38% higher than in December, and this is the highest indicator since the market peaked at $1 billion in June of last year. It is important that DappRadar excludes the data of transactions suspected of any manipulation during calculations.
The most popular method is the so-called “wash trading”, when the owner makes fake sales of NFT from his own wallets, artificially increasing its price or imitating the appearance of excitement for a little-known project.
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Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) collections remain the “blue chips” of the market, and Yuga Labs behind them maintains the status of one of the most recognizable brands in the industry.
In January, the company’s new collection of NFTs called Sewer Pass, which serve as keys to the blockchain game Dookey Dash, accounted for 34.3% of all transactions on the market in January. Passes were issued to owners of images from the BAYC and MAYC collections, and their daily turnover on the secondary market after the launch exceeded $27 million. Overall, the collections from the top ten by market capitalization best survived the downturn in the market, and they recorded the top 10 sales in January, according to DappRadar report.
They were also the first to recover from last year’s market crash: Bitwise’s Blue-Chip NFT collection index showed a 28.6% price increase compared to December. However, it is still almost 65% lower than in January 2021.
DappRadar analysts note that in January, sales increased in all significant protocols: the volume of NFT sales on the Ethereum blockchain jumped from almost $558 million in December to more than $772 million in January, and on Solana from $69.5 million to $86 million, respectively.
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The largest NFT collection on the Solana blockchain called “DeGods” showed a 113% increase in trading volumes in January, despite the fact that at the end of December its authors announced plans to migrate to Polygon. The volume of NFT sales on Polygon increased by 157% compared to December, reaching 4.5 million units. This was largely facilitated by the launch of the NFT collection by Donald Trump, the sales of which since the launch amounted to $12.1 million. Credit platforms that allow you to borrow crypto-assets against NFT collateral are also showing growth. NFTfi reached record figures in January: a turnover of $300 million, 4,399 loans and 907 active borrowers and lenders. Despite the skeptical mood in the last six months, the NFT market is beginning to revive, although its trading volumes in general obviously correlate with the growth of the bitcoin and other cryptocurrencies.
Source: Ministry of Finance
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