As The NFT Market Declines In November, Solana Rises, And Flow Falls
Trading in November is around 88% lower than in January, as overall volume and total NFTs sold continue to decline.
In November, volatility in the cryptocurrency market spread to the NFT industry, with decreasing crypto prices and sliding NFT values further hurting an already deteriorating sector. DappRadar data indicates that overall NFT trading volume fell again in November, extending a market pattern that started in May.
In November, the global NFT market generated around $643 million worth of organic trading activity, according to statistics given by the analytics company. It decreased by over 8% compared to October, when Decrypt estimated over $702 million in traffic using partial data from DappRadar and additional marketplace data from Dune.
Due to an approximately 25% decline from September to October, the month-over-month decline is less severe than in the past. However, it still reflects a significant decrease in trading activity since the beginning of the year. In January, the market’s sales volume peaked at $5.36 billion, indicating that trading volume in U.S. dollars has decreased by 88%.
DappRadar’s data eliminates transactions that may have been altered via a method known as wash trading. Wash trading happens when an NFT is traded back and forth between a user’s wallets at fraudulently inflated rates — often millions of dollars over the market price — in an attempt to influence token rewards models or improve the prominence of a particular project.
November data provided by Decrypt reveals substantial month-over-month increases and decreases across blockchain networks and individual markets. According to DappRadar’s data, the Solana NFT market had a 42% increase in total trade volume in November, up to $95 million. Most of this commerce originated from Magic Eden, the leading marketplace in Solana.
Popular profile-picture project yoots, whose long-awaited artwork was shown at the beginning of the month, fueled most of this activity. Solana NFT trading has fluctuated mainly due to the hoopla surrounding yoots and its delayed release in the last several months.
Conversely, trade on the Flow blockchain decreased by more than 50% to less than $7.7 million as NBA Top Shot saw its lowest month of secondary sales in two years—less than $2.1 million, according to statistics from analytics platform CryptoSlam, a decrease from October. In November, NFL All-Day activity also dropped.
The decline in Flow trade volume from September to October represents a negative trend for the platform. Given current market circumstances, Dapper Labs, the developer of both sports NFT systems and the Flow blockchain, revealed in early November that it had laid off around 22% of its workforce.
In November, Ethereum marketplace X2Y2’s organic NFT trade volume decreased by almost half, from around $182 million in October to about $90 million. OpenSea’s Ethereum trading volume fell from $313 million in October to about $259 million in November, marking the lowest monthly book since June 2021.
The organic trade volume of rival Ethereum marketplace LooksRare doubled to $25 million in November, while that of startup Blur surpassed $95 million following a partial-month total of about $39 million in October.
Boris Rebo, a data analyst at DappRadar, told Decrypt that the effect of FTX’s decline on the crypto market moved to the NFT area due to declining prices and crypto values.
DappRadar detected 42% fewer unique active wallet users engaging with NFT-based decentralized applications in November than in October, indicating that the “overall mood has been negative” in the NFT industry. This is a steeper reduction for NFTs than the 12% loss seen for all dapps tracked by the company.
In November, about 4.87 million NFTs were sold on secondary markets, representing a dramatic decrease from the previous month. According to statistics supplied by DappRadar and Dune for October, this is a fall of nearly 23% of the prior month’s total of about 6.3 million downloads.
According to CryptoSlam, the most-traded non-fungible token (NFT) project in November, assessed in U.S. dollars, was the omnipresent Bored Ape Yacht Club on Ethereum, with over $63.8 million worth of transactions.
According to statistics from NFT Price Floor, Bored Ape prices plummeted drastically last month, falling below $60,000 worth of ETH twice. Nevertheless, the price floor, i.e. the lowest accessible NFT posted on a marketplace, has rebounded in terms of both USD and ETH and is presently above $85,000. (about 66.8 ETH). In November, three Bored Apes were auctioned for nearly $900,000 worth of ETH each.
