• The NFT market took a significant beating in 2022, with trading volume down more than 94%.
• However, there has been an upturn in NFT volume in the last month, with daily trading volume up 42% in December.
• While volume in dollar figures may be up, investors are still buying fewer NFTs and the number of collections has nosedived in the last few days.
The Non-Fungible Token (NFT) market had a rollercoaster of a year in 2022. It started off with a bang as trading volume reached its peak at the beginning of the year. With the rise of blockchain-based digital collectibles, investors were eager to get their hands on these digital assets. Unfortunately, the NFT market soon took a hit and trading volume has been on a downward spiral ever since. By the end of the year, trading volume had dropped more than 94%, leaving many investors feeling discouraged.
However, things may be looking up for the NFT market. Data from IntoTheBlock shows that over the last month, there has been an increase in NFT volume. At the start of December, daily trading volume stood at $33 million and by December 29, this figure had risen to $47 million. This represents a 42% increase in trading volume in 30 days. Moreover, a 7-day chart shows that trading volume has more than doubled over the last week, and this has led to renewed vigor in the NFT market this week.
Despite the uptick in volume, investors still seem to be shying away from investing in NFTs. The number of NFT sales has nosedived in the last few days, with 63,000 new sales on Thursday compared to 123,000 on Wednesday. This means that while trading volume may be up in dollar figures, investors are still not buying as many NFTs and this could be an indication that the NFT market is still not out of the woods yet.
It is too early to tell whether the NFT bull market is back in full swing, but the recent increase in volume is certainly a good sign. As more and more investors begin to recognize the potential of these digital assets, it is likely that the NFT market will continue to grow in the coming months.