In January 2023, the NFT market, to the surprise of many, saw a significant revival. We used data from Delphi Digital’s latest report (NFT Debrief) to identify the reasons for the growth of this market, also looking at new NFT marketplaces and cases of brands entering the NFT market.
According to Delphi Digital’s report, the first signs of an NFT market reversal began in December 2022.
Whereas, according to the NFT Debrief, the NFT market grew even more in January 2023. After a months-long trend of declining NFT sales, we can cautiously declare the beginning of a recovery in this market.
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The report states:
NFT sales volume rebounded significantly in December, finally breaking the downward trend. Blur recorded double the volume of OpenSea during the period.
In addition to the mentioned marketplace Blur, which showed outstanding results, it is also worth noting the success of another unusual platform — NFTPerp.
NFTPerp is a decentralized exchange for perpetual futures on NFT collections. NFTPerp exceeded 16,000 $ETH in trading volume in December 2022 and is on track for an even better month in January 2023.
Speaking of marketplaces, note two things:
And the last intriguing chart shows that the NFT market (red on the chart) is aggressively growing within the entire crypto ecosystem, wresting popularity from its closest competitor, DeFi (blue on the chart):
This original metric is calculated based on the number of active smart contracts in these two related areas and says that NFT is growing not only in absolute numbers but also relative to its “crypto competitors.”
To summarize, three factors contributed significantly to the resurrection of the NFT market in January 2023:
To illustrate the trend, we have selected only a few bright cases of brands entering the NFT market in early January 2023.
Experts from the studio Nakalikes (which specializes in Web3 development) commented on the high demand for these NFTs:
“We are blown away by the incredible demand of the @shibtoken and @BugattiGroup NFT drop and humbled to have been a part of it. Sold out in a record-breaking 110 seconds!”
The success of these cases, according to experts, leads to viral infection — other brands see this successful experience of competitors and also begin to plan to enter the NFT market for themselves (typical case of FOMO).
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