Trading volumes reach three-month highs

by James · January 7, 2023

WU Blockchain reported today that the NFT market saw a significant increase in trading volume yesterday, reaching a three-month high with a single-day total of over 32,000 Ethereum (ETH).

On January 5th, the market capitalization of the NFT market reached a three-month high of approximately 10.23 million ETH. The previous high was seen on December 10, when the market cap was around 9.82 million ETH.

The data is collected from an NFT marketplace or analysis platform, NFTGo. In addition, OpenSea, a major marketplace for NFTs, also experienced a two-month peak in ETH-denominated trading volume on the same day.

However, NFTGo’s barometer is currently at 31/100, indicating that NFT market sentiment is cool. In the last 24 hours there have been 19,288 buyers and 19,288 sellers.

NFT’s sales volume in 2022 almost matches the 2021 peak

According to data from DappRadar, the volume of NFT sales in 2022 almost reached the peak of 2021, despite falling sales and falling prices in recent months. The market generated approximately $24.7 billion in organic trading volume across blockchain platforms and marketplaces in 2022, a slight decrease from the $25.1 billion recorded in 2021.

However, DappRadar observed a significant increase in the number of NFTs traded last year, with approx. 101 million NFT trades registered in 2022, compared to approx. 58.6 million in 2021. It suggests that a larger number of NFTs were traded at lower values due to decline in crypto and NFT prices.

The crypto market saw significant value losses in 2022, with losses compounded by the collapse of Terra’s LUNA and UST and the fall of crypto exchange FTX. This “crypto winter” led to a decline in crypto prices and had a similar effect on the NFT market.

Sales of NFTs received a boost in January as the market continued its momentum from 2021, with top marketplace OpenSea recording a record month of $5 billion in trading volume. However, trading volume declined in the following months before a surge in late April due to the launch of NFT plots for the metaverse game Otherside by Yuga Labs.

That propelled OpenSea to a one-day record for trading volume, but the market did not sustain that momentum, seeing a drop in monthly volume from nearly $3.3 billion in May to just over $1 billion in June. Since then, the market has not exceeded 1 billion dollars.

Related Reading | Strict Licensing of Cryptocurrency Firms Immediate Need: French Central Bank Governor