Non-fungible tokens (NFTs) are stabilizing after a sharp drop prior to this tear as sales volume surged amid the introduction of new products and initiatives, adding to the excitement for the market. Cryptocurrency markets are highly sentiment-driven.
A Bloomberg report citing data from blockchain analytics firm Nansen said that the weekly NFT Sales volume is still about half what it was in January when there was an explosion of big ticket sales and celebrity collaborations. But the market is improving, with weekly volumes now up about 32% from March lows.
Meanwhile, the report cites data from DappRadar, which suggests that the market for NFTs remains small but is gaining momentum again as new products are aimed at users like digital art of Cupid or Penguin. Enticement to trade in commodities.
Earlier this week, in addition to the trial version of the market, Coinbase Global Inc. launched a new NFT index. This may lead to an increase in NFT transactions.
DappRadar data shows that around 200,000 daily unique wallets were interacting with NFT in the first quarter. Meanwhile, Coinbase had about 89 million verified users at the end of last year.
Pedro Herrera, a senior data analyst at DappRadar, told the mentioned news agency that the NFT market is going through a consolidation period and volumes have started to rise again.
Data from CryptoSlam showed that over the past seven days, NFTs registered an increase of 116.94% in sales volume.
IndexCop on Wednesday launched the much-anticipated launch of its game-changing NFT index: JPG.
In a statement, IndexCop said that the JPG NFT Index provides comprehensive exposure to blue-chip and premier NFT collections through a single liquid token. JPGs are composed of alternative versions of NFTs such as Fractional NFTs, NFT Liquidity Vaults, NFT Curation DAOs, NFT Currencies and Wrapped NFTs. Additionally, the JPG token provides governance rights to vote on the protocol.
Nansen’s report states that the NFT market is on wild swings. It added that one in three NFT projects has little or no trading activity as users often move quickly towards the next, better piece of digital art.
Aaron Brown, a crypto investor writing for Bloomberg Opinion, said, “I expect to see a lot of ups and downs over the next few months. We have seen some successful launches with less hype than NFTs before… but I don’t get excited by the week-to-week news.”