Solana rises, flow falls as NFT market declines further in November

The turmoil over the cryptocurrency market in November spilled over NFT space, with falling crypto prices and falling NFT values affects another one constantly weakened market. New data from DappRadar suggests that overall NFT trading volume fell again in November, continuing a broader market trend that began in May.

According to data provided by the research firm, the overall NFT market produced about $643 million in organic trading volume in November. That is a decrease of over 8% from October then Decrypt counted around 702 million dollars value of volume between partial data from DappRadar paired with additional marketplace data from Dune.

That’s a less steep month-on-month drop than before, given a roughly 25% drop from September to October, but still represents a dramatic drop in trading activity since earlier this year. The market peaked at $5.36 billion in sales volume in January, meaning trading volume in US dollars has fallen by 88% since then.

DappRadar’s data excludes trades suspected of being manipulated through a process called wash trade. Wash trading occurs when an NFT is sold back and forth between a user’s own wallets at artificially inflated prices – sometimes millions of dollars above market value – in an attempt to manipulate token reward models, or increase the visibility of a particular project.

The data is shared with Decrypt shows some significant up and down month-to-month shifts across blockchain networks and specific marketplaces in November. The Solana The NFT space, for example, saw a 42% jump in total trading volume in November, up to $95 million per DappRadar’s analysis. The vast majority of this trade came from Magic Eden, Solana’s best marketplace.

Popular profile picture project y00ts, which revealed his highly anticipated artwork early in the month, drove the largest share of this action. Solana NFT trading has been on a up-and-down pattern in recent months, mainly due to the hype around y00ts and its delayed rollout.

On the other hand, trade on Flow blockchain fell over 50% to below $7.7 million NBA top shot hit its worst secondary sales month in two years — below $2.1 million, according to data from the analytics platform CryptoSlamdown even further from October. NFL All Day activity also fell in November.

Flow trading volume previously fell by 60% from September to October, marking a rough recent trend for the platform. Dapper Labs, the creator of both sports NFT platforms and the Flow blockchain, announced in early November that it had laid off around 22% of the team given current market conditions.

Ethereum marketplace X2Y2 saw organic NFT trading volume fall by half in November, meanwhile, from nearly $182 million in October to just over $90 million. Top marketplace Open seaEthereum trading volume fell from $313 million in October to nearly $259 million in November – the lowest month since June 2021.

Rival Ethereum Marketplace Looks Weird saw organic trading volume double to $25 million in November, while the upstart Obscurity topped $95 million after a mid-month tally of around $39 million in October.

Boris Rebo, data analyst at DappRadar, told Decrypt that the effect of FTX’s downfall in the crypto market actually spread into the NFT space, due to falling prices and crypto values.

“The overall sentiment has been sour” in the NFT space, he said, with DappRadar recording 42% fewer unique active wallet users interacting with NFT-based decentralized apps in November compared to October. That’s a steeper NFT-centric decline than the 12% drop across the board dapps that the company tracks.

The total number of NFTs traded in November also fell sharply month-on-month, with approximately 4.87 million NFTs sold on secondary markets. That’s down from about 6.3 million in October, between data provided by DappRadar and Dune for that month — a drop of about 23%.

According to CryptoSlam, the most traded NFT project in November measured in US dollars was the ubiquitous Bored Ape Yacht Club on Ethereum, with trades worth $63.8 million.

Boring Ape prices fell sharply last monthfalls below $60,000 worth of ETH twice, per data from NFT Price Floor. The price floor – i.e. the cheapest available NFT listed on a marketplace –has recovered in terms of both USD and ETH, and currently has over $85,000 (approx. 66.8 ETH). Three boring monkeys sold over USD 900,000 in ETH the piece in November.