One of the popular sectors in the digital asset world is Non-fungible tokens. NFTs find utility in the real world as means to store and trade digital assets. Despite challenges from the crypto bear market, there are still many opportunities for investors in the NFT marketplaces.
But now, NFTs are not doing well despite gaining more traction in the past months. NFTs’ overall trade volume fell in October, according to data from DappRadar.
The October market decline may have shaken the NFTs’ sales and trading volume. NFTs trading volume dropped 30% in October to $662 million, the lowest number recorded in 2022. The sales count also reduced by 30% to 6.13 million.
But according to DappRadar, there’s an 18% growth in monthly unique NFT traders signifying high demand. For example, the November 3 DappRadar report stated that October’s monthly individual NFT traders reached 1.11 million. That is an 18% increase from the September records of ~950,000.
The numbers signify that the NFT space was buzzing with activities in October. Two NFT markets moved to an optional royalty model. That includes Magic Eden, a Solana-based NFT marketplace, and LookRare, an Ethereum-based marketplace.
Furthermore, DappRadar revealed that Yuga Labs dominated the NFT market as usual. CryptoPunk and Bored Ape Yacht Club contributed seven out of the top ten sales in October. CryptoPunk#924 had the most value, selling for 475 ETH (worth $731,435 currently).
However, Ethereum’s NFT trade volume is still down since the second quarter, dropping 21% in the last month to $324 million. That is the lowest recorded volume since June 2021. Meanwhile, Polygon’s NFT trade volume has risen by 770% in the last month.
According to DappRadar, the success of the Reddit NFT collections is the primary driver of the increase in Polygon’NFT trade volume.
Over 2.9 million Reddit avatars have been minted since their launch in July. This class of NFTs ended up in over 2.8 million wallets. Data from analytics firm Dune suggests that the Reddit NFT collections recorded a sales volume of $10.1 million by the end of October.
Meta announced that it would adopt Polygon as its initial partner for its incoming NFT tools on November 2. This news may influence Reddit avatars’ trade volumes to increase further over the next month.
The DappRadar report further revealed that Dogecoin recorded the best performance in October. The meme coin ended the month with a 50% increase from its October opening price due to news of Elon Musk’s Twitter acquisition. Also, the announcement of Dogecoin’s future roadmaps contributed to DOGE’s price increase.
The previous month saw an increase in the average number of unique active wallets. DappRadar explained that the incorporation of Arbitrum and Optimism, including the Near Foundation/Google Cloud partnership, was the cause of the increase.
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Denis is a passionate writer and editor and he’s been writing in finance industry for almost 6 years.
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