• The NFT market saw its peak trading volume at the start of 2022, but then saw a 94% decrease in volume.
• In the last month, however, there has been an upturn in NFT volume with a 42% increase in trading volume over the last 30 days and a more than 100% increase in the daily volume over the last week.
• Despite the recent surge in volume, the number of NFT sales has continued to decline, with 63,000 new sales on Thursday compared to Wednesday’s 123,000.
The non-fungible token (NFT) market has been in a state of flux in the past few years, with its peak trading volume occurring at the start of 2022. After that, the market saw a 94% decrease in volume as investors moved away from these highly illiquid assets. Recently, however, signs of life have been seen in the market with an upturn in NFT volume in the last month.
Data from IntoTheBlock shows that at the start of December, daily trading volume was at $33 million and by December 29, this figure had increased to $47 million – representing a 42% increase in trading volume in 30 days. Moreover, looking at the 7-day chart shows a more bullish movement with a more than 100% increase in the daily volume over the last week.
Nevertheless, the number of NFT sales has continued to decline, with 63,000 new sales on Thursday compared to Wednesday’s 123,000. This means that while volume in dollar figures may be up, investors are still buying fewer NFTs. This could be due to the fact that the NFT market is still relatively new and the majority of investors are hesitant to invest large amounts of money into something they don’t understand completely.
In addition, there is still the issue of liquidity in the NFT market. While some platforms have made strides in improving liquidity, there is still a long way to go before these assets can truly be considered liquid. As such, investors are still wary of investing in these assets and are more likely to wait until they can be sure that they will be able to sell their NFTs when they need to.
It is still too early to tell if the NFT bull market is truly back, but it is clear that there is renewed interest in the market. This could be the start of something big, but only time will tell. For now, investors should remain cautious and not jump into the market until they have done their due diligence.