DappRadar report shows that NFTs are still in demand

One of the popular sectors in the digital resource world is non-fungible tokens. NFTs find use in the real world as means of storing and trading digital assets. Despite challenges from the crypto bear market, there are still plenty of opportunities for investors in the NFT marketplaces.

But now NFTs are not doing well despite gaining more traction in recent months. NFT’s overall trading volume fell in October, according to data from DappRadar.

The market downturn in October may have shaken NFT’s sales and trading volume. NFT trading volume fell 30% in October to $662 million, the lowest figure recorded in 2022. The number of sales also decreased by 30% to 6.13 million.

But according to DappRadar, there is an 18% growth in monthly unique NFT traders indicating high demand. For example, the November 3 DappRadar report stated that October’s monthly individual NFT traders reached 1.11 million. That’s up 18% from the September records of ~950,000.

The figures indicate that the NFT area was buzzing with activity in October. Two NFT markets transitioned to an optional royalty model. It includes Magic Eden, a Solana-based NFT marketplace, and LookRare, an Ethereum-based marketplace.

Polygon NFT’s leader market with 770% increase

Furthermore, DappRadar revealed that Yuga Labs dominated the NFT market as usual. CryptoPunk and Bored Ape Yacht Club contributed seven of the top ten sales in October. CryptoPunk#924 had the most value, selling for 475 ETH (currently worth $731,435).

However, Ethereum’s NFT trading volume is still down since the second quarter, falling 21% in the last month to $324 million. That is the lowest recorded volume since June 2021. Meanwhile, Polygon’s NFT trading volume has risen by 770% in the past month.

According to DappRadar, the success of the Reddit NFT collections is the primary driver of the increase in Polygon’s NFT trading volume.

Over 2.9 million Reddit avatars have been branded since its launch in July. This class of NFTs ended up in over 2.8 million wallets. Data from research firm Dune suggests that Reddit NFT collections recorded a sales volume of $10.1 million at the end of October.

Reddit avatars increase as Meta launches new NFT tools

Meta announced that it would adopt Polygon as its first partner for its incoming NFT tools on November 2nd. This news could influence Reddit avatars’ trading volume to increase further over the next month.

The DappRadar report further revealed that Dogecoin recorded the best performance in October. The meme coin ended the month up 50% from its October opening price on news of Elon Musk’s Twitter acquisition. Also, the announcement of Dogecoin’s future roadmap contributed to DOGE’s price increase.

The previous month saw an increase in the average number of unique active wallets. DappRadar explained that the incorporation of Arbitrum and Optimism, including the Near Foundation/Google Cloud partnership, was the reason for the increase.

Featured Image From Pixabay, Charts From Tradingview