• The non-fungible token (NFT) market has continued to thrive despite the overall bearish trend in cryptocurrency.
• 2022 was not as climatic as 2021 for NFTs, with the organic trading volume generated by the NFT market in 2022 being around $24.7 billion.
• The number of NFTs traded increased significantly in 2022, despite the flat overall trading volume.
The non-fungible token (NFT) market has shown resilience despite the bearish trend in cryptocurrency. On Jan. 5, 2023, the single-day trading volume of the NFT market exceeded 32,000 ETH, representing the highest level in three months. This is a stark contrast to the overall bearish sentiment in the cryptocurrency market. The trading volume on the OpenSea platform, one of the biggest marketplaces for NFTs, also reached a two-month high on the same day.
The year 2021 was the year that NFTs caught on and investors rushed to embrace cryptocurrencies and metaverses. However, the enthusiasm for NFTs in 2022 was not as great. According to DappRadar, the organic trading volume generated by the NFT market in 2022 was around $24.7 billion, a slight decrease from the $25.1 billion recorded in 2021. This can likely be attributed to the public scandals in the crypto market, like the FTX collapse, as well as the general waning interest in NFTs. Major cryptocurrencies also crashed, sending the entire market into a frenzy. This caused NFT prices to drop and led to a decrease in trading volume.
Despite the overall flat trading volume, the number of NFTs traded in 2022 increased significantly. DappRadar reported that the total trading volume during the first quarter of 2022 reached $12.4 billion. However, the following quarter saw a steady decline. The trading volume for the second quarter was $8.4 billion, followed by the third quarter at $2.6 billion and the fourth quarter at $1.2 billion.
Overall, the NFT market is still holding up well in 2023 despite the bearish market sentiment and the lackluster performance of NFTs in 2022. The single-day trading volume of the NFT market on Jan.5 exceeded 32,000 ETH and the trading volume on the OpenSea platform also reached a two-month high on the same day. Furthermore, the number of NFTs traded increased significantly in 2022, despite the flat overall trading volume. This shows that the NFT market is still alive and kicking and is likely to continue to thrive in the future.