Number of Crypto Wallets Trading NFTs Surges by 44%
A recent report has shown that the number of crypto wallets actively trading non-fungible tokens (NFTs) has increased by more than 44% compared to last year. According to DappRadar, an on-chain data aggregator, the NFT market has experienced significant growth in on-chain NFT activity over the past 12 months. This surge has led to an average of 316,614 daily unique active wallets.
NFT Market Shift
The report highlights a shift in focus within the NFT community, with a decrease in trading sales volume and count from the previous year. The market is now more focused on generative art, membership passes, and game items rather than digital collectibles and profile picture NFTs. Despite a 28% drop in unique NFT traders, there are still 701,560 active NFT traders who continue to engage in the market.
Evolution of More NFT Blockchains
The emergence of more blockchains supporting NFTs has also contributed to the spike in on-chain NFT activity. While Ethereum remains dominant in the NFT market, other blockchains like Immutable X and Polygon have gained attention. Polygon has transitioned from being a DeFi-driven blockchain to becoming a key player in the NFT sphere, attracting mainstream Web2 companies such as Reddit, Lufthansa, and Starbucks.
Marketplace Dynamics
The dynamics of various NFT market platforms have played a role in increasing on-chain NFT activity. The OpenSea NFT marketplace, which previously had 60% market dominance, has been overtaken by Blur due to its airdrop mechanics and lending protocol.
Emergence of More NFT Ecosystems
The emergence of new NFT ecosystems has also contributed to the surge in on-chain activity. Yuga Labs, the digital asset firm behind Bored Ape Yacht Club, has been a dominant force in terms of trading volume. However, other projects such as DeGods, Azuki, The Captainz, and Milady Maker have made significant contributions to the NFT market through partnerships, roadmaps, and mint launches.
Hot Take: The Resilience of the NFT Market
Despite the prolonged bear market, the NFT market has shown resilience and continues to attract active traders. The growth in the number of wallets actively trading NFTs is a positive sign for the future of this market. With new blockchains supporting NFTs and the emergence of dynamic ecosystems, the NFT market is evolving and diversifying. As more mainstream companies enter the Web3 domain and explore NFTs, we can expect further growth and innovation in this space.
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