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- 1 According to DappRadar, NFTs are seeing increased activity with positive crypto market trends and the approval of 11 Bitcoin ETFs.
- 2 As of 2023, there has been a 166% increase in interest in NFT collections, owing to an increase in new daily unique active wallets.
- 3 Despite a drop in NFT prices and trading volumes, the number of NFTs sold in 2023 increased by 445%.
The non-fungible token (NFT) market showed strong signs of resurrection in 2023, with trading activity surging 166% from the previous year, according to new data from DappRadar.
The increased interest comes from positive crypto market trends and regulatory moves like approving 11 Bitcoin exchange-traded funds (ETFs).
Trading Volume Drops, But NFT Sales Skyrocket
While overall NFT trading volumes fell 49% to $12.6 billion in 2023, the number of NFTs sold soared a staggering 445% to 60 million for the year, according to DappRadar. This divergence highlights how NFTs became more affordable, allowing greater participation even as crypto markets remained volatile.
DappRadar attributed the rising activity to heightened interest in NFT collections in particular. New daily active wallets interacting with NFTs surged 166%, signaling a major comeback for digital collectibles. Top collections like Blur and Bored Ape Yacht Club saw renewed trader activity after declines in 2022.
OpenSea held onto its lead as the top NFT marketplace by trader count, averaging 280,000 monthly users last year. However, Blur overtook it in trading volume with 56% market dominance thanks to its lower minting fees.
Metaverse and Game NFTs Stay Strong
Beyond profile picture collections, NFTs related to metaverse and blockchain gaming projects remained resilient. DappRadar approved nearly 3,000 decentralized apps (dApps) in 2023, with NFT and game dApps representing 25% and 21% respectively.
Major brands jumping into NFTs also added legitimacy. From Nike’s.Swoosh to Gucci’s.GucciClash, big names generated fresh hype around digital collectibles through 2023.
Enthusiasts point to factors like brand loyalty and decentralized finance (DeFi) integrations as key drivers that will further propel NFT adoption.
Regulatory Moves Clear Path for Expansion
Developments like the SEC’s approval of Bitcoin ETFs catalyze the NFT rebound. The same companies now cleared to offer Bitcoin ETFs have applied for Ethereum products, with decisions due in 2024.
Approvals could spur a rush of altcoin spot ETFs just as the NFT market enters its next growth phase. SEC decisions set the regulatory tone, and measured oversight is increasingly welcomed versus outright opposition.
Given its clear status, XRP also stands out as a top contender for an SEC-sanctioned ETF. Regulatory certainty strengthens investor confidence in nascent crypto assets.
Conclusion
After a rocky 2022, data shows NFTs re-emerged with double-digit growth driven by new user activity and regulatory progress.
With blue-chip brands cementing their importance and regulators taking a more balanced stance, NFTs are primed for an even bigger breakthrough as adoption extends beyond crypto enthusiasts.
The foundations laid in 2023 have set the stage for NFTs to reform capital markets and creative industries in the years ahead.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
