NFT Market Sees Upturn in Trading Volume, But Sales Still Down
• The NFT market took a significant beating in the year 2022, with trading volumes down more than 94% from its peak.
• There has been an increase in NFT volume over the last month, with a 42% increase in trading volume in 30 days, and a more than 100% increase in the daily volume over the last week.
• Despite this upturn, the number of NFT sales has still nosedived in the last few days.
The Non-Fungible Token (NFT) market experienced a major slump in 2022, with trading volumes plummeting more than 94% from its peak. NFTs are highly illiquid assets, meaning that the market has been particularly volatile and prone to sudden drops in trading volume. This has been evidenced by the drastic decrease in trading volume over the last year.
However, recently there has been a rise in NFT trading volume. Data from IntoTheBlock shows that there has been a 42% increase in trading volume in 30 days, with daily trading volume at the start of December being $33 million, and by December 29, this figure had risen to $47 million.
In addition, the 7-day chart shows a more bullish movement, with a more than 100% increase in the daily volume over the last week. This has sparked hope for a resurgence in the NFT market, with investors and traders getting back into the market.
Unfortunately, despite this upturn, the number of NFT sales has still nosedived in the last few days. On Thursday there were 63,000 new sales, compared to Wednesday’s 123,000. This indicates that while the trading volume in dollar figures may be up, investors are still buying fewer NFTs overall.
It is therefore difficult to tell whether or not the NFT bull market is back in full swing. There have been signs of a resurgence in the NFT market, but the number of NFT sales continues to decline, suggesting that while the market may be recovering, it is still not as strong as it once was.