Have NFTS MADE A COMEBACK?

After remaining in bear trend for six months, the NFT market is slowly getting back on its feet with trading volumes up for the two consecutive months.

In January 2023, the total NFT trading volume was $946 million, which was up 38% from the previous month. The sales count of NFTs also increased by 42% from the previous month, to reach 9.2 million. In October, the trading volume of NFTs fell to a low of $662 million, but in November, the market halted the downtrend trend and stayed at $662 million. However, in December it rebounded and rose slightly to $683 million. The NFT blockchain Ethereum was the winner with a trading volume of $659 million. Its sales count also increased by 7.37% from the previous month. Solana ranked second, with a 23.7% increase in its trading volume, reaching $86 million, but its sales count decreased by 5.79%.The third slot went to Polygon, which recorded a whopping 124% increase in its NFT trading volume, reaching $46 million. The sales count of Polygon NFTs increased by 157.39% from the previous month, reaching 4.5 million.

WHY VOLUMES ARE UP

According to experts tracking this class, there are a number of factors responsible for the spike in the NFT market. Says Kameshwaran Elangovan, Co-founder and COO, GuardianLink. "The first is that people have started to understand the line of demarcation between NFTs and cryptocurrencies. The other is that the NFT market has matured a lot, creating more metaverses with stories and NFTs with utility rather than confining themselves to simple images."

Says Vikram R Singh, Founder and CEO, Antier, "The rise in trading volumes of NFTs in the last two months can be attributed to the increased demand for digital assets, such as art, music, and videos. This has been in response to the digital transformation that has taken place in the entertainment industry, as well as the increasing popularity of blockchain technology."

WHAT ARE NFTS