Identifying whether the NFT winter is finally giving way

Journalist

Posted: December 12, 2023

• The total transaction count surged by 20.69% in just 30 days
• Traders made $14.19 million in profits over the past month, the highest since May 2022

Encouraging signals emerged from the non-fungible token [NFT] market recently, raising hopes that the once-famous Web3 vertical would mimic cryptos’ growth trajectory and usher in a bull market.

NFT winter thawing?

AMBCrypto accessed Cryptoslam’s data and discovered sales worth more than a billion over the past month, marking a whopping 92.11% growth.

Moreover, the total transaction count surged by 20.69% to 8.1 million in the last 30 days. In fact, the last three days saw higher sales than any other three-day stretch since August.

Source: Cryptoslam

Additionally, over the past month and a half, the number of unique buyers has continuously outnumbered the number of unique sellers. This highlighted improving demand for this set of Web3 products.

Traders realizing higher profits

A possible explanation behind the spike in interest were the gains being realized with each transaction. NFT traders walked away with $14.19 million in profits over the past month, the highest since May 2022. The prospect of such gains prompted many traders to invest their capital in the NFT market.

The uptick in trading activity came as a ray of sunshine after a long and bitter NFT winter. As can be seen, NFT sales have been declining since hitting a high of $1.2 billion in February. The drop accelerated in the second and third quarters. In fact, sales were just $300 million in September, the lowest since the NFT bull market of 2021 and early 2022.

Bitcoin, Solana lift the NFT sector

Perhaps the growth drivers were Bitcoin [BTC] and Solana [SOL], with both recording a fourfold increase in their sales over the last month. In fact, at press time, BTC was the network with the highest NFT sales volume, followed by traditional leader Ethereum [ETH] and Solana in third place.

Source: CryptoSlam/ Bitcoin NFTs

The 24-hour leaderboard was dominated by collections from the aforementioned networks. While the BRC-20 NFTs grabbed the first two spots, Mad Lads played a key role in boosting Solana’s NFT market.

Mad Lads, a collection of 10,000 unique profile picture (PFP) NFTs, exploded by 509% in the past month. It’d be safe to assume that Mad Lads served to mitigate the effects of the departure of y00ts and DeGods, two of Solana’s most popular collections previously.