Crypto and NFTs are turning the corner
Web3 bounces back.
VIP+’s analysis of key figures across NFTs and cryptocurrency shows a reversal of fortunes from the recent declines seen over several quarters, all led by the resurgence of Bitcoin.
Q1 2023 was the first quarter Bitcoin saw an increase in value per unit since Q4 2021. The quarterly increase was a significant $12.1K per coin versus Q4 2022 (+73%), but remains below the levels seen throughout 2021 and 2022.
The rally reflects a combination of investors spooked by recent US banking crises and the easing of inflation, which could free up more disposable income to invest in crypto.
The same boom can be seen for the two most valuable coins after Bitcoin – Ethereum and BNB. Both were at the highest values seen in a year and represent significant returns for investors who got in early in 2020, but they have yet to regain the heights seen in 2021, when crypto and NFT mania ran unabated.
Global NFT sales increased in Q1 2023 for the first time since the previous year. Total sales were worth $2.8 billion, representing an increase of $1 billion (+56%) over the previous quarter.
Contextually, it’s important to note that while they are going back, NFT sales are nowhere near the $13.3 billion high-water mark reached a year ago, before the bubble burst. Still, this is important news for media companies, many of which had earmarked NFTs as a revenue growth area before crypto winter hit.
An increase in wealth is also demonstrated with data showing the number of unique NFT buyers who buy via large marketplaces. On a quarterly basis, the sum of characteristic buyers using Ethereum reached new highs in March 2023, with 358,259 different buyers. This comes just ahead of what was seen in March 2022 (345,571) and December 2021 (344,024), suggesting that the world’s most popular NFT marketplace is reflecting an increase in consumerism.
Polygon also saw the number of buyers reach new highs in the first quarter. There were 157,855 different NFT buyers at the end of the first quarter of 2023, an increase of 241% on 111,569 from the same period in 2022. Of the rest of the five largest NFT marketplaces, BNB could also count more buyers than the previous year, which indicating that NFTs are returning to consumer consciousness.
Ethereum was by far the largest NFT marketplace in March 2023, with over half a billion in sales worldwide. The second largest was Solana with $94 million, followed by Polygon and ImmutableX, the only two others to register more than $20 million in sales. NFTs are a marketplace dominated by .Eth.
When considering cryptocurrencies, Bitcoin is by far the largest coin in the market, followed by Ethereum, Tether, BNB and USD Coin. Bitcoin is worth more than the combined market capitalization of all other coins worth more than $5 billion, to give a sense of perspective.
This also shows that perhaps the crypto winter should be considered the crypto frost, especially given that there are signs that it is starting to thaw. If it continues to do so, expect media and entertainment companies to quickly jump back on the bandwagon later this year.
