Situation of the NFT Market Right Now
Debate has been focused on the market for non-fungible tokens (NFTs). NFTs are supposedly going out of style, yet the market has proven surprisingly resilient. Dune data shows that NFTs have outperformed all other crypto tales for the week, with an amazing 35% performance over the last seven days. Another well-liked industry, Gamble-Fi, grew at a slower rate of 7%, while Telegram Bots saw a minor decrease of 1%.
Indications of a Possible NFT Rebirth
Despite the NFT market’s difficulty recovering from its 2021 top, there are signs of a possible resurgence. 96% of NFTs are reportedly “dead,” meaning that their holders are losing money and having trouble finding purchasers, according to reports from NFTevening. This absence of liquidity has added to the general stagnation of the market. The percentage of dead NFTs did, however, show a minor increase tendency, peaking at 30.32% in 2023 as opposed to 22.57% in 2022. Approximately thirty percent of NFTs are considered dead as of 2024, though this percentage could fluctuate as the year goes on.
Highlights of the Week’s Performance
The noteworthy increase in NFT activity this week may be related to more general developments in the cryptocurrency market. Known for being speculative, NFTs may be seeing a relative uptick in value when other industries collapse. NFTpulse data indicates that during the course of the week, user activity has surged across a variety of blockchain networks. With a 28% increase in users, Solana overtook Polygon (20%) and Ethereum (19%) as the leaders. This surge in user activity may be the consequence of wash trading, which is still a common practice in the market, or it may be the effect of the introduction of new, well-liked NFT collections.
NFT Wash Trading Drops
The NFT market has long been plagued by wash trading, a manipulative tactic in which traders buy and sell the same item to create false activity. Recent evidence, however, points to a decrease in these kinds of activity. Wash trading represented just 1.1% of all NFT transactions as of September 2, 2024, a sharp decline from the 40.5% reported at the start of the year. With organic trading accounting for 98.9% of all NFT transactions, it appears that the market is now dominated and may be moving in the direction of a more sincere and sustainable environment.
