In recent times, the NFT trading volume has declined, with a massive fall in sales counts in October. The report shows that the trading volume dropped by 30% to $662 million, the lowest in 2022. The sales count also decreased by 30% to 6.13 million.
Amidst the decline in the trading volume and sales count in October, traders are moving upward. The DappRadar report shows market growth despite breakouts.
DappRadar's report revealed an 18% growth in unique monthly traders. It said the number of traders increased from 950,000 in September to 1.11 million in October.
According to DappRadar,
The trader's rise indicates that new people are entering the market, and it is still in great demand."
Experts commented that October was a busy month in this ecosystem. This is evident in two marketplaces shifting to an optional royalty model. They are the Solana-based Magic Eden and Ethereum-based LooksRare.
According to DappRadar's report, Yuga Lab maintains its dominating run in the market. Seven of the top ten sales for October came from CryptoPunk and Bored Ape Yacht Club (BAYC).
You would recall that this is the second quarter the Ethereum trading volume is declining. The trading volume fell 21% over the last month to $324 million. This is the lowest volume since June 2021, according to DappRadar.
On the other hand, Polygon's NFT trading volume soared by over 770% over the last month. DappRadar attributes the surge to the success of the Reddit NFT collection.
Between July to October, more than 2.9 million Reddit Avatars were minted, with about 2.8 million collectors owning them. Dune analytics data reported that the Reddit NFT ended October with a sales volume of $10.1 million.
The DappRadar report also revealed an increase in active wallets, 6.84% from September. It attributes the increase to the incorporation of Lido within Arbitrum and Optimism. Another driver could be the partnership between the Near Foundation and Google Cloud.
The unprecedented decline in the NFT trading volume and sales count is largely attributed to the crypto winter. The continuous decline in the price value of major digital assets is affecting collection sales.
The DappRadar report is, however, mixed with good and bad statistics. As trade volume decreases for the second quarter, unique traders have increased. Collections like Reddit Avatar and Polygon NFT also surged massively.
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