NFT trading volume rises after a protracted fall

The volume of trading in unique NFT tokens increased by 38% compared to December. This is reported by experts of the analytical service DappRadar.

Data from multiple blockchains and marketplaces shows NFT sales totaled $946.7M last month. This is a significant increase from December, with unique token trading volume totaling $683.9M in the last month of 2022. January was the best month for the industry from June 2022.

DappRadar excludes data about transactions that can be suspected of money laundering or sales that can be called manipulative. Often in wash trading, the user sells overpriced NFTs between their own wallets, usually in an attempt to raise awareness of a lesser-known project by creating artificial market activity. The owner of the NFT sells his NFT to another wallet that he also controls, making the NFT more valuable than it actually is. Thus, other users in the NFT market get the impression that the asset is liquid and growing in price.

In addition to the growth in trading volume, the total number of NFT transactions made during the month also increased. In January, DappRadar recorded over 9.5 million NFT sales, the largest recorded number in nearly a year since February 2022. This is 42% more than in December, when about 6.7 million NFTs were sold.

According to DappRadar, the OpenSea marketplace continues to lead the NFT market. The total trading volume on the site in January amounted to $495 million. In December, this figure was $297 million.

Compared to last year, the NFT market is still a pitiful sight. Last January, NFT trading volume set its record (which is still an all-time high) at $5.36 billion. But NFTs plummeted in popularity in May, along with the rest of the cryptocurrency market.

Many NFT naysayers have declared the market dead after declining yields over the past few months, but the data shows broader activity and price recovery for large projects.

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