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NFT Market Shows Signs of Recovery Despite Low Trading Volume

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NFT Non-fungible tokens

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Ruholamin Haqshanas

Author

Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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Last updated:

June 26, 2023

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The market for non-fungible tokens (NFTs) shows signs of recovery – with the number of users, transactions, and amount of wallets buying NFTs seeing an uptick despite the continued low trading volume.

More than 250,000 users interacted with NFTs over the week ended on May 23, up by around 25% from 200,000 users that traded NFTs the week prior, according to data by blockchain analytics firm Nansen.

There has also been a significant increase in the number of transactions, which hit 500,000 over the past week, up by more than 60% compared to the earlier week that recorded less than 300,000 transactions.

Meanwhile, according to crypto intelligence company Coin Metrics, the number of transfers of ERC-721, a standard for representing ownership of non-fungible tokens, hit its highest point in years on May 22.

“The number of ERC-721 transfers hit its highest level since 2019 (only beaten by the 2019 God’s Unchained trading card game release) this past Sunday on May 22, 2022 at 660K,” Coin Metrics said.

Similarly, wallet activity has reached pre-crash levels, with a strong boost in the number of wallets buying NFTs. According to Nansen, more than 267,000 wallets purchased NFTs over the past week, up from around 171,000 wallets that acquired NFTs the week earlier.

However, despite an uptick in the number of users, transactions, and wallets buying NFTs, the trading volume in USD remains low.

NFT sales volume has plunged by around 14% over the past week, dropping to USD 21m, according to NonFungible.com. Likewise, the number of sales has dropped by more than 2% to 23,000.

Sales (white) and number of sales (orange). Source: nonfungible.com

Blue-chip NFT collections have also continued to see a decline in the number of sales. Yuga Labs’ Otherdeed NFTs, Bored Ape Yacht Club (BAYC), Azuki, and Mutant Ape Yacht Club (MAYC) have all seen a decline in the number of sales over the past week, according to data by CryptoSlam.