🌎 NFT Market Trading Volumes Decline in January

The global market for NFTs has seen a decline in trading volumes for the third week of January, according to data from CryptoSlam.io, a leading on-chain data aggregator. The trading sales volume in the NFT sector dropped to $223 million over the last week, marking a significant 22.5% decrease from the previous week.

Despite the decrease in trading volume, there has been an increase in the number of active participants in the NFT market. Recent data shows that over 734,000 collectors engaged in NFT purchases across various platforms in the last week, representing a 34% increase in active participants.

However, there has been a notable increase in wash trading, especially across Solana and Avalanche collections. Wash trading, a form of market manipulation, involves simultaneous buying and selling of the same NFT to create artificial activity in the marketplace. The high levels of wash trading on Solana and Avalanche suggest that a significant portion of their NFT transactions may be artificial, potentially distorting genuine economic indicators.

Bitcoin Ordinals collections experienced a significant decline in sales in January, with a nearly 35% decrease. Ethereum and Solana-based NFTs also saw a decline, while Polygon-based NFTs saw a massive 70% increase in sales, with the Trump Digital Trading Cards Series 2 collection seeing a 25% increase in floor price.

On the other hand, popular Ethereum-based collections like CryptoPunks and BAYC saw a decline in floor prices in the past few weeks.

While the NFT market has shown signs of recovery from the downtrend in Q4 2023, it is currently experiencing a bearish phase. This shift may indicate a changing landscape in the NFT business, with a potential shift in user interest towards less popular networks like Polygon and Avalanche-based collections, which have shown remarkable growth this month.