NFT Sales Surges To $2 Billion in March As Blur Started To Dominate
Exploring the Surge in NFT Trading Volume: Is it Sustainable?
In February, the NFT market experienced a remarkable surge, surpassing $2 billion in total trading volume. This momentum carried over into March, with trading volume remaining close to the $2 billion mark. However, market data and analysis suggest that the surge in NFT trading volume might be influenced by various factors, including the presence of rewards schemes and the activities of "whale" traders.
In this article, we will delve into the details of the recent NFT market trends and discuss the concerns surrounding the sustainability and organic nature of this surge.
Trading Volume Analysis:
Market data from DappRadar and additional on-chain data from Dune indicate that the trading volume in March reached approximately $1.95 billion, showing a marginal decrease of 4% from February's total of $2.04 billion.
The majority of this trading volume originated from Blur, with Ethereum NFT trades accounting for nearly $1.35 billion, slightly higher than the previous month.
The launch of the BLUR reward token in mid-February incentivized significant trading activity, attracting attention from both traders and market makers.
The surge in trading volume and its impact on the overall NFT market has sparked debates regarding its classification as "manipulated" or "wash trading." While data platform CryptoSlam has raised concerns, DappRadar considers the trading activity as legitimate. The trend continues, with more token rewards being promised to users. However, the dominance of a small number of whale traders and the influence of rewards schemes raise questions about the organic nature of the recent rise in NFT market sales.
OpenSea, the leading NFT marketplace in terms of total unique wallets, witnessed a decrease in trading volume, with approximately $424 million in March compared to $587 million in February. Overall, Ethereum NFT trading remained relatively stable at around $1.82 billion in March, only slightly higher than the previous month's total of $1.81 billion. It is important to note that along with the dip in trading volume, the number of NFTs sold also decreased in March compared to February.
The surge in NFT trading volume, reaching over $2 billion in February and remaining close to that mark in March, highlights the dynamic nature of the NFT market. However, questions surrounding the organic nature and sustainability of this surge persist. As the market evolves, it is important to monitor the influence of rewards schemes, the activities of whale traders, and the overall trading patterns to gain a comprehensive understanding of the NFT ecosystem's future direction.
Originally Published By Decrypt.co : NFT Sales Near $2 Billion in March as Blur Dominates Market
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