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Non-Fungible Token Market Slumps Amidst NFT Wash Trading and Broader Market Shift
The non-fungible token (NFT) market has plunged into another week of decline, plagued by a combination of factors including wash trading and a broader market shift towards alternative digital assets like memecoins.
NFT Sales Drop 18% Over the Past Week
Data compiled by CryptoSlam.io, a multi-chain NFT explorer, reveals a significant 18% drop in global NFT sales volume over the past seven days. The total trading volume amounted to $195 million, a stark contrast to the previous week's performance.
Despite the declining sales, the number of NFT collectors and traders has surged by 37% to nearly 1 million. The number of collectors selling their NFTs has also increased by 30%.
Ethereum Leads NFT Blockchain Networks
Ethereum, the prominent blockchain powering a majority of NFTs, emerged as the top-traded blockchain network in the NFT ecosystem this past week. Ethereum-based NFT collections amassed a sales volume of $69 million, representing a 39% increase compared to the previous week.
Bitcoin, the blockchain underpinning the flagship cryptocurrency Bitcoin, ranked second with a sales volume of $58 million. However, Bitcoin-based NFT sales witnessed a 50% decline from the previous week.
Solana and Polygon Hold Market Share
Solana, a blockchain platform supporting smart contracts and NFTs, secured the third position with a sales volume of $32 million. Polygon, an Ethereum scaling blockchain, ranked fourth with sales amounting to $17 million, registering a 14.96% growth from the previous week.
Top-Selling NFT Collections
1. Bitcoin Ordinals NFT Collections:
Bitcoin Ordinals, a collection of NFTs created on the Bitcoin blockchain using the Ordinal protocol, dominated the market as the week's top-selling collection. The collection recorded a sales volume of $32 million, a 20% decline from the previous week.
2. CryptoPunk NFT Collection:
CryptoPunks, a collection of 10,000 NFTs hosted on the Ethereum blockchain, ranked second with a sales volume of $14 million, marking a remarkable 326% surge from the previous week.
3. Bored Ape Yacht Club NFT Collection:
Bored Ape Yacht Club, a collection of 10,000 NFTs hosted on Ethereum, secured third place with a sales volume of $7.9 million, representing a 79.80% increase from the previous week.
4. DMarket NFT Collection:
DMarket, an NFT collection hosted on the Mythos Chain blockchain, ranked fourth with sales totaling $5.9 million, marking a 6.46% decline from the previous week.
5. NodeMonkes NFT Collection:
NodeMonkes, a collection of 10,000 NFTs created on the Bitcoin blockchain, ranked fifth with sales amounting to $4.8 million, experiencing a 21% drop from the previous week.
NFT Market Outlook
Earlier this month, a significant shift occurred in the crypto market, with traders moving their focus away from NFTs and towards memecoins and other cryptocurrencies. This trend is expected to continue for the foreseeable future, potentially leading to a further decline in NFT sales.
However, experts believe that the NFT market is cyclical and is likely to experience a resurgence in sales once the memecoin season subsides.
Additional Notable NFT News
- Azuki NFT creator Chiru Labs is actively seeking individuals with NFT expertise.
- NFT sales volume witnessed a 70% surge following the sale of a CryptoPunk for over $12 million.
- Magic Eden, a leading NFT marketplace, is set to launch its Base marketplace on Solana.
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