The global nft market has witnessed a downward trend in trading volumes, marking a steady decline during the third week of January.
According to the latest figures from CryptoSlam.io, a prominent on-chain data aggregator, trading sales volume in the nft sector has fallen to $223 million over the past week. This represents a significant drop of 22.5% compared to the previous week's figures.
In contrast, the nft market has seen an increase in the number of active participants. Recent data shows that more than 734,000 collectors made nft purchases on various platforms over the past week. This increase, representing a 34% increase, indicates growing interest in non-fungible tokens despite the overall decline in trading volume.
<img decoding="async" width="922" height="368" src="https://crypto.news/app/uploads/2024/01/Screenshot-2024-01-29-213300.png” alt=”nft sales volume”/>
However, trade in washes has been notably high, especially in the Solana and Avalanche collections. Wash trading is a form of market manipulation in which an investor simultaneously sells and buys the same nft to create artificial and misleading activity in the market. The notably high levels of wash trading on Solana and Avalanche suggest that a significant portion of their nft transactions may be artificial, which could inflate perceived market activity and distort genuine economic indicators.
bitcoin Ordinals collections were hit the hardest in January, as sales decreased by almost 35%. NFTs based on ethereum and Solana also saw a significant drop. However, non-fungible tokens on Polygon saw a whopping 70% increase in sales this month. Polygon's most popular collection, Trump Digital Trading Cards Series 2, experienced a notable 25% increase in the minimum price. This is potentially due to the hype surrounding the current election season in the United States and the Trump campaign.
<img loading="lazy" decoding="async" width="892" height="684" src="https://crypto.news/app/uploads/2024/01/Screenshot-2024-01-29-213300-1.png” alt=”Trump NFTs”/>
On the other hand, popular ethereum-based collections saw a notable drop in recent weeks, with the lowest price of nft/cryptopunks” target=”_blank” rel=”noopener”>CryptoPunks and nft/bored-ape-yacht-club” target=”_blank” rel=”noopener”>BAYC both fell almost 8% in the last two weeks.
Although the market recovered significantly from its prolonged downtrend in Q4 2023, it is apparently once again going through a bearish phase, perhaps an indication that user interest is shifting towards less popular networks such as collections based at Polygon and Avalanche, which have seen notable growth this year. month, it appears that the nft business may be changing and diversifying, rather than strictly narrowing.
