It seems that the NFT market is slowly picking up. Trading volumes have increased for two months in a row, with January notching the highest volumes since June of last year, according to Dapp Industry Report: January 2023.
January’s growth marked a marked departure from the trend of the past few months: in October, trading volumes fell to a low of $662 million, but in November, the market halted the downward trend to remain at $ 662 million, according to the report. report.
Volumes then rebounded in December, rising slightly to $683 million and rising 38.5% from that number to $946 million in January.
Several blockchains allow merchants to buy and sell NFTs, but Ethereum has held the leading position with over $36 billion in all-time sales. data from the NFT aggregator CryptoSlam showed. By comparison, Ronin and Solana, the second and third largest blockchains by total NFT sales volume, were around $4.2 billion and $3.7 billion, respectively.
January was strong for both Ethereum and Solana, which posted trading volumes of $659 million and $85 million, respectively.
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February is also showing signs of continued strength, at least so far. As of February 3, the Ethereum blockchain had sales of $26.5 million from more than 25,500 unique buyers, according to data from CryptoSlam.
While Ethereum accounts for the lion’s share of trading volumes, accounting for more than 78% of all transactions on the blockchain, Polygon had the largest influx of traders in January, the report showed.
Polygon’s transaction volume grew 124% to $46 million in January from $20 million in December. Last week, the sales volume of NFTs on the blockchain grew by 43.5% to reach $2.8 million, indicating continued interest in the blockchain.
In late December, two large Solana NFT projects, DeGods and y00ts, said they would be leaving the blockchain in 2023, prompting mixed feelings in the community. DeGods said he would migrate to Ethereum and y00ts plans to move to Polygon.
“Earlier in the year, we noticed that a lot of the attention in the creator economy was focused on ETH and Solana,” Ryan Wyatt, CEO of Polygon Studios, previously told TechCrunch. “Therefore, we decided to go against the trend and focus on the untapped potential of web3 by bringing in large enterprise brands, DeFi platforms and gaming companies. We did this successfully through investments in ecosystem funds and the support of white glove associations.”
As big NFT collections like DeGods and y00ts diversify their blockchain partnerships, they could also attract other holders looking for new opportunities or seeing value elsewhere.
Consecutive growth of the past two months could also point to a broader uptrend across the crypto market. It could also potentially help push creators and projects to form new use cases in the NFT world as they look to capitalize on the bull market.
