Arbitrum NFT Frenzy Cools As Unique Buyers Leave In droves – CryptoMode
There was initial excitement this week regarding soaring NFT sales on Arbitrum. Unfortunately, many people got their hopes up too early. Despite a significant increase in volume over several days, momentum is returning to more normal levels, indicating that the run is over.
Arbitrum NFT volume surpasses $1m again
It’s never a bad thing to see alternative blockchains building strong momentum. Although Ethereum is the go-to network for NFTs, there are better ecosystems. Arbitrum has the potential to disrupt the market a bit, although it will require sustainable NFT trading volume to do so. That could prove the Achilles heel, as the previous “pump” in the NFT selloff was short-lived. Specifically, it lasted only a few days, and sales figures have collapsed.
It is not the first time that Arbitrum has seen a sudden increase in NFT trading. Similar developments occurred in April 2022 and the end of September 2022. For one reason or another, people create a flurry of activity before things slow down again. It’s similar to a pump-and-dump of one of the many useless altcoins on the market. Maintaining volume is very difficult, even though there are more unique buyers and sellers than earlier this year.
Numerically, Arbitrum surpassed $1.138 million in NFT sales this month. That may not seem like much, but the last time it topped $1 million was in April 2022. The peak, hit in March 2022, of $11.56 million will remain well out of reach. This month’s volume mainly stems from higher trading on November 4, 5, 6, 7, 8 and 11. None of these days broke the $100,000 mark, but there were notable increases in volume. Volume on the 25th was $18,809, which is much closer to average.
Another big development is how the average NFT sale price on Arbitrum fell below $10 on November 19th. close to 50% decrease day by day as the average was $16.21 on the 18th and $26.65 today. There is good volatility in NFT prices on the network, which is not necessarily a good thing. Also, the unique buyers reached almost 2,500 on November 20th, but fell to 761 on November 29th.
NFT unique buyers plunge
Seeing the number of NFT buyers drop again is not entirely surprising. The sudden upward momentum with buyers is beneficial, but there are too many pump-and-dump similarities. To see the buyers go from 4,700 in July to almost 40,000 in November is strange. Moreover, they doubled from August (9,334) to September 2022 (19,199), and then doubled again in October (44,867). Explosive growth, but not necessarily sustainable.
That said, NFTs on Arbitrum are very affordable. Anyone can spend $20 on an NFT – but always research investments and see if there is any value. It makes the network more attractive than Ethereum, Solana or other chains. In addition, Arbiturm’s low fees and fast transactions benefit collectors and investors. However, there are serious concerns about Arbitrum maintaining this momentum for more than a few days in a row.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses incurred by acting on information provided on this website by its authors or customers. Always do your research before making any financial commitments, especially with third-party reviews, pre-sales and other opportunities.
