Is the NFT Bull Market Back? Here’s What the Data Says
The NFT market took a substantial hit in 2022, despite hitting its peak trading volume earlier in the year. Since then, the book has fallen more than 94% as investors flee from these highly illiquid assets. However, in the last month, there has been an increase in NFT volume, so is the NFT bull market back?
What the Data Says
Data from IntoTheBlock shows that NFT trading volume has increased over the past month but has yet to be steady growth. The chart shows more of a zigzag pattern, which means the book has been going up and down over this period. Daily trading volume was $33 million in early December and $47 million on December 29. This represents an increase in trading volume of around 42% in 30 days. However, if you zoom out and look at the 7-day chart, there is more bullish movement.
Valued at $20 million on December 25, the daily volume is up more than 100% over the past week. This explains the renewed vigor in the NFT market this week, but it doesn’t necessarily mean that the NFT bull market is back in full swing.
NFT sales have fallen sharply over the past few days, with 63,000 new sales on Thursday versus 123,000 on Wednesday. So, while dollar volume may Investors continue to buy fewer NFTs, and the number of collections has also decreased.
NFT Popularity is Still Dropping
As with any new field, the popularity of NFTs has been driven primarily by the acceptance of new users. This peaked in January 2022 but failed to sustain that momentum. According to IntoTheBlock, the number of unique addresses buying NFTs is declining. As of Thursday, December 29, just 5,780 new addresses were using NFTs, hitting a nearly two-year low. The last time it was this low was in February 2021, when non-fungible tokens were still trying to establish themselves in the crypto market.
The emerging collections have also reached a low for the year. Only 675 new groups were created on Thursday, bringing it to November 2021 levels. Another important metric is the number of unique groups purchased, 111 simultaneously Period. More encouragingly, the XRP NFT market is seeing a spike in adoption.
On Friday, he crossed the 7.3 million XRP mark in total sales volume.