2023 has been difficult, but a 5-week increase in NFT sales volume suggests that the worst of the crypto winter is now over with.
It’s no secret that 2023 has been a difficult year for the NFT market. The death knell of the industry has been sounded time and time again (i.e. the circulating headline that 95% of NFTs have no value), but data shows that the worst of the crypto winter is now over with.
Nansen AI, a leading blockchain analytics firm, revealed that NFT volume is currently at its highest since the end of August, and is 38% higher than the lowest week in September.
“The market euphoria isn’t just happening to BTC, ETH, SOL and many other coins, but also NFTs,” the firm wrote on X, adding, “Don’t say it, don’t say it… Are we back?”
On November 6th, NFT sales volumes reached 68,342 ETH – more than double the volume recorded on October 9 (29,074 ETH).
Ethereum reigns supreme, but Bitcoin had a boost
Data from CryptoSlam.io shows that Ethereum has generated the highest sales volume over the past month, generating more than $203,846,020. Bored Ape Yacht Club (BAYC) sales accounted for $27 million of this.
A report by DappRadar also affirmed that Ethereum is “still leading the pack”, having seen a volume increase of 50% from September.
PFP bluechips like CryptoPunks and Bored Ape Yacht Club (BAYC) have fared particularly well, with CryptoPunks seeing a near 60% increase in buyers.
The Captainz, a newer Ethereum NFT project that launched earlier this year, saw the largest increase in sales this month, gaining 434%.
The Bitcoin network also saw a 120% gain in sales volume this month via its BRC-20 Ordinals, alongside Solana – likely bolstered by the steady surge of SOL itself.
Polygon, Cardano and BNB chain all however saw decreases.
What’s behind the rise?
2023 is turning out to be a fairly strong year for the cryptocurrency market, despite having various setbacks.
Bitcoin for instance has gained 80% this year, and many altcoins such as Solana and XRP have followed similar upward trajectories.
A key factor in the resurgence of NFTs is also the wider adoption and regulation of Web3 more broadly. Many institutional banks have now opened their doors to digital assets, and various countries are taking quick actions to implement regulations that protect investors.
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