Cryptocurrencies rise and NFTs adjust
This month revealed complexities within the cryptocurrency and nft markets, with the nft sector recording a trading volume of $1.2 billion, down 3.7% from January. In particular, nft collections featured on platforms such as ethereum, Polygon, BNB Chain, Cronos, Optimism, and Sui (such as Azuki, MAYC, and BAYC) saw a substantial 32.1% reduction in trading volume. This decline was notably influenced by the lower performance of Gas Hero NFTs, which affected Polygon and Mooar. At the same time, new narratives such as ERC404 and DN404 were introduced during this period.
This report is based on data obtained from Footprint Analytics' nft/nft-market/market-overview?series_date=past90days”>nft Research Page, a complete and easy-to-use panel. Provides essential up-to-date statistics and metrics to take the pulse of the nft industry, covering operations, projects, financing, and more.
crypto Macros Overview
In February 2024, bitcoin and Ether showed impressive growth: bitcoin surged 46.5% to close at $62,404, surpassing $60,000 for the first time since Q4 2021 and approaching its all-time high by just 9%. . Ether slightly outperformed bitcoin, rising 48.1% to end the month at $3,383.
February's significant rally in the cryptocurrency market was influenced by multiple factors. The introduction of new spot bitcoin ETFs in the US attracted massive inflows, totaling $6 billion in February alone, signaling strong investor confidence and a shift towards cryptocurrencies as a reserve of viable value. Additionally, anticipation of the ethereum network upgrade in March and the bitcoin halving event in April contributed to the price gains.
However, broader market dynamics, such as concerns about inflation and Federal Reserve policies, could pose challenges to continued growth. The spike in inflation in February indicates a risk that planned U.S. interest rate cuts could be delayed until later this year or beyond.
nft Market Overview
In February, amid significant growth in the broader cryptocurrency sector, the nft market saw a change of pace. Trading volume in the nft market reached $1.2 billion3.7% less than in January.
Examination of ethereum, Polygon, BNB Chain, Cronos, Optimism and Sui reveals a drop in trading volume to $838.9 million, a 16.1% decline from January, accompanied by a 25.8% decline in transactions and a 14.6% drop in the single user (wallet). numbers. This reduction is due in part to fewer days in February. Additionally, fluctuating interest in key collections reflects changing market dynamics and changes in investor sentiment.
In February, the top 10 nft collections across the six blockchains saw a 32.1% decline in total trading volume from $570.18 million in January to $387.16 million, representing 46.2% of total February market volume, up from 56.2% in January.
Azukiwhich tops the January chart, faced a sharp 73.65% drop in volume to $32.6 million, retreating significantly from its previous market dominance. Mutant Ape Yacht Club (MAYC) and Bored Ape Yacht Club (BAYC) also experienced drops of 42.0% and 18.2%, respectively.
Despite a 32.8% reduction in trading volume to $64.08 million, Chubby penguins emerged as the best collection of February, with its minimum price increasing by 15.0% and approaching BAYC's minimum price at one point. Meanwhile, Walmart has expanded its partnership, bringing Pudgy Toys to an additional 1,100 stores in the US for a total of 3,100. This move not only amplifies Pudgy Penguins' market presence but also marks a significant step in the integration of Web3's intellectual property, improving its market share.
Eighth place went to moon birds, which recorded a trading volume of $27.8 million. Yuga Labs' acquisition of PROOF on February 16, including Moonbirds and other assets, caused an increase in its floor price and trading volume.
The Nobody nft collection, a collaboration between Nobody and famous director Stephen Chow, debuted with a trading volume of $36.6 million, ranking fifth. Launched on the Moonbox platform, which aims to introduce ai-powered NFTs to the arts and film sector, Nobody NFTs mark Chow's entry into the nft space.
Chains and markets for nft
In February, ethereum maintained its leadership in the nft market, recording a trading volume of $814.3 million and capturing 97.1% of all transactions, slightly adjusting its market share upwards despite lower volume than in January. On the other hand, Polygon experienced a notable decline, with its trading volume falling to $20.4 million from $106.0 million in January, causing its market share to decline sharply from 10.4% to 2.4%.
ethereum's number of unique users (wallets) decreased to 149.9K from 163.3K in January, but its market share actually grew from 42.7% to 46.9%. Polygon also saw a decline: its user base fell to 129.2K, bringing its market share to 40.4%. Meanwhile, BNB Chain's market share increased modestly, reaching 9.7% with 30.9 thousand users.
In February, gas hero, a Web3 game developed by Find Satoshi Lab, saw its nft trading volume drop 87.2% to $12.3 million, following a successful launch in January with $96.1 million in trading volume. This decline contributed significantly to reduced business activity at Polygon and Mooar. On February 28, the Gas Hero team announced a strategic pivot toward closed beta testing, aiming to address balance-of-budget and user experience issues.
In February, Blur remained a dominant force in the nft market, despite a decline in trading volume to $613.2 million, managing to improve its market share to 73.1% from 68.3% in January. Open seaHowever, it witnessed a marginal increase in trading volume to $171.7 million but saw its market share increase to 20.5%, reversing its previous trend of decline. moarOn the other hand, it experienced a significant drop, with its trading volume falling to $12.3 million, sharply reducing its market share to 1.5% after a previous increase.
OpenSea led the nft market with 224.4 thousand unique users (wallets), despite a decrease from 278.9 thousand in January. Blur, however, saw an increase to 60.5 thousand users, while nft-Marketplace?marketplace=element&channel=EN-643″>Element fell slightly to 35.9K.
nft Investment and Financing
Public records reveal three rounds of funding in the nft market, highlighting a period of moderate investment activity. Despite this general slowness, Animoca Brands stood out for its active participation in the sector.
- Binance Labs declared its investment in the S6 Incubation project, NFPrommpt, taking a leading role in this investment round.
- WELL3, developed by YogaPez, successfully raised over $5 million through seed funding rounds and nft sales led by Animoca Brands, Newman Group, and Soul Capital Partners.
- Imaginary Ones, an nft collection of 3D animated characters, recently concluded its latest funding round, attracting investments from Cypher Capital Group, Animoca Brands, and MH Ventures.
What's new?
- Pudgy Penguins Toys expands to 1,100 more Walmart stores.
- Yuga Labs acquires PROOF and Moonbirds.
- Pandora popularized the concept of ERC-404 and its token skyrocketed 12,000% in one week.
- Magic Eden's ethereum marketplace with Yuga Labs went live on February 27.
- Solana NFTs exceed $5 billion in trading volume.
- NodeMonkes takes bitcoin Ordinals to new heights as the price of bitcoin nears an all-time high.
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Data includes:
- Blockchains: ethereum, Polygon, BNB Chain, Cronos, Optimismo, Sui
- Markets: OpenSea, LooksRare, Blur, X2Y2, Cryptopunks, Rarible, SuperRare, Foundation, Decentraland, Aavegotchi, Element, Era7, the Sandbox, Minted, Clutchy, BlueMove, Hyperspace, Tocen, Keepsake, Mooar.
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
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