Surge in NFT Trading Volumes After SEC’s Failure to File Appeal
The U.S. Securities and Exchange Commission’s (SEC) failure to file an appeal in the Grayscale Bitcoin Trust case has resulted in a 15% surge in trading volumes for non-fungible tokens (NFTs). According to CryptoSlam.io, the NFT ecosystem experienced a significant uptick, with total trading volume reaching $9.7 million. Additionally, there was a 5.9% increase in the number of investors actively acquiring NFTs. Ethereum-based NFT collections saw a notable 26.7% increase in sales, contributing $5.2 million in trading proceeds within 24 hours. Digital collectibles on Mythos Chain and Solana blockchain also registered spikes, accumulating trading sales of $1.3 million and $1 million, respectively.
Grayscale vs. SEC
Grayscale, a digital currency asset management company, has been in a legal dispute with the SEC over its push to convert its Bitcoin Trust into a spot BTC ETF. In August, an appeals panel declared the SEC’s decision invalid and arbitrary, indicating that the regulator should review its actions. The future of Grayscale’s spot Bitcoin ETF remains uncertain, but its approval could have significant implications for both the crypto market and the NFT space.
UK Calls for NFT Copyright Protection
A cross-party committee of the U.K. Parliament has called on the government to protect the rights of artists and consumers in the NFT market. The committee expressed concerns about fan tokens in sports and highlighted the impact of blockchain and NFTs on art and culture. While it commended NFT technology for creating opportunities for artists, it also raised concerns about fraudulent activities and potential legal violations.
Nearly 95% of NFTs Hold No Market Value
dappGambl reports that almost 95% of NFTs now have no market value. Out of 73,257 digital collections, 69,795 have a market capitalization of zero Ethereum (ETH). This reveals the challenging landscape faced by NFT creators and buyers, with only 20% of identified collections securing full ownership.
Hot Take: NFT Trading Volumes Surge Amid Grayscale’s Legal Battle with the SEC
The failure of the U.S. Securities and Exchange Commission to file an appeal in the Grayscale Bitcoin Trust case has led to a significant increase in trading volumes for non-fungible tokens (NFTs). This surge demonstrates the interconnectedness of the crypto market and the NFT space. As investors actively acquire NFTs and Ethereum-based collections see a rise in sales, it becomes evident that the decision on Grayscale’s spot Bitcoin ETF approval will have a substantial impact on the NFT market. Meanwhile, in the U.K., concerns about NFTs’ impact on art and culture have prompted calls for copyright protection measures. With most NFTs lacking market value and facing ownership challenges, it is clear that the NFT market is still evolving and facing various obstacles.
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