The NFT sector appears to be on the mend as sentiment around the broader crypto market picks up.
The emergence of new players and changing dynamics have resulted in a rapid evolution of the non-expendable token space. Despite a hectic start, NFTs had a strong first quarter of 2023.
NFT Market Overview: Q1 2023
according to a report Per DappRadar, the NFT market has had an impressive start to the year. In fact, the first quarter of 2023 turned out to be the best quarter since the second quarter of 2022. While NFT trading volume posted a slight decline of 15.65% in March as a result of turbulent market conditions, performance overall remained bullish. Let’s take a closer look at the highlights of the NFT market’s performance in Q1.
Trading volume for the entire first quarter increased 137%, reaching a total value of $4.7 billion. The February figure was boosted by Blur’s token farming period, while the NFT sales count for the following month fell just 4.63% in March, with 2.7 million NFTs sold.
Zooming out, NFT sales accounted for 19.4 million in Q1 2023, which is an 8.56% increase from Q4 2022.
Regarding blockchain, Ethereum remains the dominant player in the NFT market by volume, accounting for almost 90% of the market share in March. Its quarterly trading volume also increased more than 245% to $4.1 billion in the first quarter of 2023, compared to the fourth quarter of 2022.
Lagging behind is Solana, with a volume of operations of 242 million dollars. From the previous quarter, the layer 1 blockchain saw an increase of 4.55%.
Polygon also had a remarkable start to the year, with transaction volume topping $29 million in March, despite a 24.20% decline from the previous month. Additionally, when measuring quarterly data, the Layer 2 scaling solution had $85 million in transaction volume in Q1 2023, which is an increase of 125.04% over the previous quarter, making it in one of the best three-month periods on record since Q4 2021.
Featured: Blur vs. Open sea
OpenSea has long maintained its position as the dominant NFT marketplace. However, the appearance of Blur raised an open battle against the once undisputed market leader. The report revealed that Blur dominated the NFT market in the first quarter of the year, posting a trading volume of $2.7 billion, a staggering 783.89% increase from Q4 2022 and a market dominance of more than 57%. .
Blur was hit by a decline in trading volume of 6.56% to $1.2 billion, even so, the platform had a more than 70% dominance over the market.
After facing stiff competition from Blue, OpenSea’s market share reached its lowest since February 2021, at just 22% in March. Compared to the first quarter of 2023, the market registered an increase of 68.41% with a volume of operations of 1.4 billion dollars. Its quarterly market dominance stood at 31.10%.
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