While the NFT space reported impressive statistics at the beginning of 2023, in part due to Blur’s token launch, Q2 development has been considerably slower.
During the first quarter of 2023, the trading volumes of NFTs on Ethereum experienced a substantial increase compared to the previous quarter. This growth can be attributed, at least in part, to the excitement generated by the airdrop farming frenzy for Blur’s native token.
The crypto analytics firm Nansen revealed that the trading volume of NFTs more than doubled in 2023, from $1.9 billion in Q4 2022 to $4.5 billion in Q1 2023.
Although the number of trades went up by more than twice as much, the number of unique wallets that traded NFTs only went up by 24.5% during the same time period. In Q1 2023, there were 13.9 million users, up from 11.2 million in Q4 2022.
According to the data above, it appears that the higher trading volume can be attributed to existing users rather than a significant influx of new users. This trend may be linked to the BLUR token airdrop.
It seems that this spring has been somewhat bearish for the NFT market, despite the annual trend. Upon closer examination of NFT activity, it’s clear that trading volumes across a variety of marketplaces experienced a 30% decline in April when compared to March.
This month, Nansen reported that the first week of May had the “lowest number of sales and users” of the entire year. The weekly number of NFT sales decreased to approximately 370,000.
With about 90,000 ETH traded each week, the amount of trading in May has dropped back to values that were bearish in 2022.
Despite a decline in the volume of ETH traded, trading volumes in USD terms have increased due to Ethereum’s relatively bullish start to the year.
In the fourth quarter of last year, the second-largest asset by market capitalization traded for less than $1,300; today, that figure is closer to $1,900.
Content Source: decrypt.com
