NFT Buyers Increase By 105% – Here’s Why
The NFT market seems to be peaking again – and it’s about time. At its peak, it was worth a whopping $21 billion, so it was about time such a dominant market would come back to life. It was such a hype. It’s crazy to think how big they did become, with celebrities like Justin Biber, Snoop Dogg, LeBron James, and so many others investing millions in them until 2022 when the market slowed down.
Recent NFT marketplace data shows a staggering 105% increase in people investing. It’s not just a mere trend, it is being backed by numbers, market dynamics, and an understanding that NFTs are changing.
Read on to learn why marketplaces are buzzing again.
Increased Number of NFT Buyers
The number of investors purchasing NFTs has grown by at least 100%. Those are crazy numbers. Over seven days ago, more than 350 thousand people buying crypto were investing in NFTs, a 105% rise compared to previous weeks. Increased purchase activity reveals managing financial assets has regained trust in non-fungible tokens, which have been struggling to take off after being hyped initially.
Despite this upsurge in buyers, however, total trading volume for NFTs took a dip, albeit slightly, with $85 million recorded as sales, representing a drop of 2.64% from recent highs.
Fear not – think of the positives. The 105% increase indicates that people could be buying cheaper non-fungible tokens or simply joining markets through more conservative investments.
Ethereum Continues to Lead
Ethereum still dominates the world’s NFT market – Bitcoin never made an impact like Ethereum did.
In just one week, Ethereum-based collections managed to generate $29 million worth of transactions, which showed growth of 7%. Ethereum is still so central to NFTs. It has a reputation for its already established infrastructure and the popularity of blue-chip NFT collections like Bored Ape Yacht Club and CryptoPunks.
You can see how dominant Ethereum is. It attracts high-value transactions and large numbers in any market it’s in. Second to Bitcoin, it has the largest crypto and NFT network running. With its scalability capabilities and multiple tools for developers, Ethereum tends to be the most preferred platform for many NFT projects.
The recent surge in Ethereum-based NFT sales implies that, despite the volatility across the entire market, Ethereum is still a stable and attractive environment for trading NFTs.
Solana and Bitcoin
We can’t give too much hate to platforms other than Ethereum – they are trying.
There has been notable activity on Solana as one of the biggest players in the NFT space but with a slight decrease in volumes traded. Over one week only, Solana-based collections’ trading volume was worth $17 million, down 5.53% from last week’s figures. Still, Solana is the second most frequently traded blockchain for NFTs, known for its cheaper transaction fees and processing faster than Ethereum. We all know about how expensive and slow Ethereum is.
Bitcoin-based NFTs remain resilient despite a slight decrease in trading volumes. Bitcoin is now a key player in the NFT space. Recently, Bitcoin NFTs like Bitcoin Ordinals and Runes traded for $13 million, with a small drop of 2.68% within seven days. That shows that Bitcoin’s NFT market is picking up, even though it still remains in the early stages of development.
The Top-Selling NFTs
Top-selling NFTs over the past week have given insights into what’s happening in the market.
Leading the pack is DMarket NFT Collection, which decreased by 42% from last week but achieved $4.9 million in trading volume. This collection shows how virtual items in games continue to interest gamers.
And it wouldn’t be right to not talk about the Guild of Guardians NFT Collection, which saw an increase in sales of 1.02%, amounting to $3.5 million, and the Sorare NFT Collection, where there was an increase in sales of 6.08%, amounting to $3.4 million, respectively.
Why Are People Buying NFTs Again?
One of the main drivers is a general recovery in cryptocurrency markets. With the stability and growth in prices of major cryptocurrencies and integration into everyday life, including Bitcoin and Ethereum, investor confidence has been restored, intensifying curiosity about NFTs as solid investments again.
We’d also say they’re attracting more attention because of the recent peaking interest in areas people relate to, like gaming. Maybe soon they’re no longer just mere collectables but more sophisticated NFT ecosystems to be used within games or virtual worlds.
There has also been a change in the ease with which new investors can access the market. NFT wallets are so much more sophisticated and easy to use than when NFTs were at their most valuable. That’s made it easier for new investors to join, buy, sell, and trade them, reducing entry barriers globally.
Though the total trade volume decreased slightly, the increase in buyers by 105% shows people are more interested. There’s obviously more confidence returning to NFTs.
What do you think about the recent return of buyers? With prices low, if the NFT market is recovering, now is the perfect time to think about NFT investments.
And the numbers don’t lie.
Are NFTs something you’d think about investing in?