According to TradingPlatforms.com and DappRadar, non-fungible token sales surpassed $4 billion in the last month. Over $3 billion worth of transactions were conducted on OpenSea alone, followed by Magic Eden, Axie Infinity, and CryptoPunks.
Its transactions volume increased by 20% on the back of Polygon’s support. NFT marketplaces such as Solanart, which runs on the Solana blockchain, and NBA Top Shot generated $53 million in sales in the last month. The recent market downturn’s impact on the NFT space is uncertain, however, as flagship digital currencies like bitcoin and ethereum have plummeted to multi-month lows in the wake of the Fed hinting at raising interest rates earlier this year.
As a senior research analyst at Messari, a company that provides market intelligence for the crypto industry, Mason Nystrom believes NFT may be more positioned than current cryptocurrency price movements indicate. From historical data, it is pretty evident that the cryptomarkets rise and fall with Bitcoin. The NFT market has continued to grow in volume throughout the recent downturn, which has made it surprisingly interesting. According to OpenSea, NFT volume has reached $2.3 billion so far in January, and if volumes continue, it will break its monthly volume record.
A Crypto Daily Report says that NFT prices are exhibiting strength amid macro concerns and the crypto sell-off, in addition to strong transaction flows. According to the report, Bored Apes have seen a 9 percent increase in floor prices in the last seven days, while Doodles are up 47 percent and World of Women are up 56 percent.
NFTs are likely to experience volatility in the near term due to current market conditions, but Nystrom believes that the nature of these digital assets may allow them to decouple from crypto markets.
NFTs cover a wide range of areas, such as art, collectibles, gaming assets, fantasy sports, music, and financial assets. It is possible for NFT commerce from one specific vertical to grow over time while NFT commerce from others declines or fluctuates. In the future, it is possible that any segment of the NFT market could perform drastically different than any or all markets.
It is likely that NFT gaming will continue to receive significant funding, although some of these assets could be valued at more reasonable levels through time. As users look for ways to ensure they can either generate yield or remain liquid, NFT financial services including loans, hedging, etc., will grow similar to that of traditional financial instruments and the space develops. The last quarter of 2021 and the onset of 2022 has already seen increased interest in different types of assets including photography and music NFTs namely.