NFT industry bounces back after reduced sales: Nansen

Following a year-long downward trend, one of the hardest hit sectors in the digital asset industry was fungible tokens (NFT).

Declining sales and low volumes have raised doubts about the sustainability of NFTs. However, the market seems to be slowly recovering. According to the latest data, the NFT industry has seen a steady increase in Ether sales every week.

NFT Trading Volumetrics

According to the latest data shared by Nansen, NFT trading volume has been steadily increasing for the past five weeks.

The lowest point was the week ending October 9, when the weekly NFT volume reached 29.7k ETH. The second week attracted 36k ETH, and then saw a steady increase in numbers. The third and fourth weeks saw 47.3k ETH and 56.7k ETH respectively. In the year In the week ending November 6th, NFT trading volume increased to over 68.3k ETH.

Blockchain analytics company NFT Market Blur showed this amount to be 171,926 ETH compared to Openea's 37,765 ETH.

For the past 5 weeks, NFT volume has been steadily increasing 📈

The bottom week close was October 9, NFT weekly volume was 29,704 ETH, compared to the previous week, week ending November 6, NFT sales volume reached 68,342 ETH.

Slowly then suddenly…? pic.twitter.com/420fiRYw9e

— Nansen 🧭 (@nansen_ai) November 6, 2023

Return slowly?

DapRadar's latest report shows how the NFT trading trend changed in October and showed a 32% increase compared to September. Although the total transaction volume exceeded 405 million dollars, the number of NFT sales decreased by 5%.

Ethereum continues to lead in terms of transaction volume, experiencing a significant 50% jump. Immortal X ranked second with $22 million in sales, driven mostly by Gods Unchained, Cross the Ages, and Illuvium.

The same cannot be said for blockchain networks, which have seen a significant decline in sales volume while Ethereum has seen growth. Polygon, Starkware, and Flow experienced drops of 48%, 42%, and 32%, respectively.

Solana is one blockchain network worth noting after previous failures, especially the one connected to FTX. In October, the volume of NFT trading on Solana increased by 15%, securing the 5th highest position in the ranking. Additionally, zkSync Era, a newcomer, saw its NFT trading volume rise by 88% to reach $12 million in the past month.

Solana's trading volume increased from $24 million to $27.6 million this month, which represents a growth of 15%, while zkSync, ranked 6th in the largest chain, showed an impressive growth of 88%, from $7.3 million to $14 million.

In terms of sales volume, Starkware fell from 479,000 to 264,000, a 48% decline, while Polygon fell from 1.5 million to 1.2 million, representing a 23% decline.