NFTs on the Rise Again: October Saw 32% Growth in Trading Volume – Trend to Continue This Month?
The market for non-fungible tokens (NFTs) is experiencing a resurgence, with October witnessing a substantial 32% growth in trading volume compared to the previous month.
According to data released by crypto data firm DappRadar, NFT trading volume surged by $99 million, reaching $405 million in October, signifying levels of sales not seen since August.
DappRadar pointed out that this growth marks a significant shift from the year-long downward trend in NFT trading.
The report highlighted the promising signs of recovery in this sector, offering renewed hope to projects that have faced challenges throughout this year.
While the market for profile picture (PFP) projects, such as Yuga Labs’ Bored Ape Yacht Club (BAYC), has experienced a lull during the crypto winter, the recent uptick in NFT trading volume could indicate a broader revival in the digital assets industry.
The surge in NFT trading volume coincided with Bitcoin’s price rebounding above $35,000, reaching its highest point in 16 months.
Analysts suggest that this price increase was driven by anticipation surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
Solana NFTs Continue to Find Momentum
DappRadar’s report also mentioned Solana ( SOL) as a notable network showing growth, with NFT trading volume on the high-speed layer-1 blockchain increasing by 15%, from $24 million to $27.6 million.
Solana’s own price experienced a significant surge of 65% in October, rising from $23 to approximately $38, according to CoinGecko.
Ethereum ( ETH), the second-largest cryptocurrency, remained at the forefront of NFT trading, with a 50% increase in trading volume across various blockchains supporting NFTs.
“Even though there was growth on Ethereum, other chains have seen a significant drop in sales volume. Polygon, Starkware, and Flow had their sales volume drop 48%, 42% and 32% respectively,” the report added.
As NFT trading gained momentum in October, the floor prices of popular PFP projects also witnessed an increase.
For instance, the floor price for NFTs from the Bored Ape Yacht Club rose from $40,000 worth of Ethereum to around $55,000.
While the surge in trading value may instill optimism among NFT traders, it is important to note that October’s trading volume of $405 million is still significantly lower compared to the $2 billion in NFT sales seen in March.
Additionally, NFT sales continued to decline last month, with the total number of NFTs sold decreasing by 5%, from 3.58 million in September to 3.4 million in October, as reported by DappRadar.
However, this decline was less severe compared to the significant drop of 290,000 NFT sales in August.