The recent trading trend of the NFT market has presented a mix of bearish signals interjected by surprising successes. In the past month, most NFT projects have seen a decline in trading volumes and prices, which can be attributed to the persisting bear market throughout 2022 and the first quarter of 2023. However, a select few NFT collections have managed to buck the trend and record growth.
Blockchain analytics firm IntoTheBlock’s data reveals that out of the top 20 NFT collections by market cap, only six witnessed increased trading volumes in the last 30 days. The rest experienced consequential dips varying between 20% and 99%. For instance, renowned NFT collection CryptoPunks saw its trading volume nosedive by over 60% in the past month. Other major digital collectibles like Mutant Ape Yacht Club, Otherdeed, Moonbirds, and Doodles experienced plunges varying between 20% and 73%.
This downward trajectory was particularly pronounced with Yuga Labs’ Sewer Pass, as the ninth-largest project by market cap registered an alarming drop of 99.16% in trading volume. Though these statistics present a disheartening outlook, a few projects have defied bearish trends. Among them, the NFT collection Captainz led the pack by surging 53.81% in trading volume. Moreover, market cap leader Bored Ape Yacht Club (BAYC) experienced a 24.67% volume increase.
Nevertheless, the increase in trading volumes did not translate to price surges for all projects in question. Both BAYC and Meebits observed price drops of 16.42% and 24.18% respectively, despite their inflated trading volumes. On a more encouraging note, CryptoPunks’ witnessed a 2.37% boost in price, even as its trading volume dwindled.
Remarkably, only three collections—Azuki, Autoglyphs, and Captainz—recorded growth in all aspects. They demonstrated price gains of 5.29%, 1.44%, and 36.60%, respectively, complemented by increased trading volumes.
Although the NFT market’s recent performance could be concerning to some, it is critical to note that the industry continues to flourish and innovate. Reports suggest that Q1 2023 was the most profitable quarter for NFTs since Q2 2022, with a substantial 137% growth in trading volume, amounting to $4.7 billion. Furthermore, the first quarter of 2023 saw 19.4 million NFT sales, representing an 8.56% increase from the preceding quarter.
In conclusion, while the NFT market might currently be navigating rough waters, punctuated by bearish trends and select surprising successes, one cannot overlook its continued growth and potential for further development. The key takeaway is to acknowledge the market’s resilience and dynamism in a continually shifting landscape.
Capitulation? NFT Trading Volumes and Prices Plummet in the Last 30 Days