No Of Crypto Wallets Trading NFTs Have Increased By 44% From 2022 – Analysis

On Sep 21, 2023

Despite the non-fungible token market suffering from the prolonged bear market, some bullish news is still coming from this space. A recent report has revealed that the number of crypto wallets actively trading NFTs has increased more than 44% from last year.

1/ We’ve just released our NFT Industry Report! 📊
Despite one of the most severe and prolonged bear markets, the resilience of the NFT market is standing out!
Here are the key takeaways: 🧵
Full insight:https://t.co/T8Jft9M268 pic.twitter.com/fKn1Uh1d17
— DappRadar Insights (@InsightsByDR) September 20, 2023

No of Crypto Wallets Trading NFTs Spike 44%

In a September 21 blog post, DappRadar, an on-chain data aggregator, shared a market report for the NFT market for the past 12 months. The analytic report found that the NFT market has grown 44% in its on-chain NFT activity from August last year. This surge has pushed the daily Unique Active Wallets to an average of 316,614.DappRadar has highlighted some of the factors driving the on-chain activity upwards:

1. NFT Market Shift

The market report has found that the trading sales volume and sales count have shrunk from year to year, which might have been caused by a shift in focus with the NFT community. It’s worth noting that the previous year was dominated by digital collectibles and profile picture NFTs. The current market depends on generative art, membership passes, and game items.

Even though there is a 28% drop in unique NFT traders from the past year, the report has noted that the community has remained robust, recording 701,560 active NFT traders. These traders, on average, have executed roughly 4.5 transactions, underscoring their continued involvement and enthusiasm in the NFT market.

2. Evolution Of More NFT Blockchains

DappRadar has highlighted the evolution of more blockchains supporting non-fungible tokens as another significant factor contributing to a spike in on-chain NFT activity. Even though the Ethereum network continues dominating the NFT market, housing the most renowned collections, the rise of Immutable X to second place has captured some attention.

This market shift underscores the mounting appeal of in-game NFTs. Polygon, once recognized as a DeFi-driven blockchain, has also transitioned into a key player in the NFT sphere. Its growing influence can be seen in its adoption by several mainstream Web2 companies, including the likes of Reddit, Lufthansa, and Starbucks, as they venture into the Web3 domain.

Notably, zkSync is another blockchain that recently added support for NFTs. Surprisingly, the network has quickly ascended the ranks, clinching the fifth position. With increasing interactions on this blockchain, many users are animated by the anticipation of a potential token airdrop in the near future.

In terms of data sales count, the market report has noticed more shifts from the past year. As of August 2023, Polygon has stood out with the highest number of sales, primarily due to its offering of cost-effective NFT collections. Ethereum, however, had retained its significance, ranking second. It has remained a familiar and trusted choice for many in the industry due to its long prominence in the NFT realm.

3. Marketplace Dynamics

Dynamism in various non-fungible token market platforms is another significant factor that has attributed to some spike in on-chain NFT activity. The OpenSea NFT marketplace, which had 60% market dominance in August 2022, has lost its dominance. The new marketplace Blur has risen to the top spot in terms of trading sales volume, all thanks to its airdrop mechanics and lending protocol.

4. Emergence Of More NFT Ecosystems

Lastly, DappRadar has highlighted the emergence of new NFT ecosystems as another factor that has attracted a slight surge in on-chain activity. In terms of trading volume, Yuga Labs, the digital asset firm behind Bored Ape Yacht Club, has been the predominant force from the last year and in the present landscape.

Nonetheless, the NFT market has seen new dynamic ecosystems, including DeGods, Azuki, The Captainz, and Milady Maker. Over the past year, each project has made several innovations through intriguing partnerships, comprehensive roadmaps unveiling expansive ecosystems, and fresh mint launches to curve the market upwards.