The trading volume of NFTs continues to decline in the third week of January. Let us tell you that the volume of trading sales in the NFT sector has fallen to $223 million in the last week. This represents a significant decline of 22.5% compared to the previous week's figures. However, the NFT market has seen an increase in the number of active users. Recent data shows that over 734,000 collectors have purchased NFTs across various platforms in the last week. This surge of 34% indicates growing interest in non-fungible tokens despite a decrease in trading volumes.
The special thing is that most of the NFT collections have seen a decline in January, yet the sales of non-fungible tokens on Polygon have seen a huge increase of 70% this month. In which the floor price of Trump Digital Trading Card Series 2 has increased by 25%. This increase is probably due to the current election season in the US and Trump's campaign promotion. Along with this, recently Donald Trump has also taken the help of Bitcoin Ordinals to increase his Trump NFT selling, which seems to be benefiting Trump's NFT collection.
Apart from this, all other NFT collections continue to decline. In which Bitcoin Ordinals collections suffered the most, as sales declined by approximately 35%. Along with this, a significant decline has also been seen in Ethereum and Solana-based NFTs. Popular Ethereum-based collectibles have seen major declines over the past few weeks, with the minimum price of both CryptoPunks and BAYC down around 8% over the past two weeks.
Apart from this, wash trading has been quite high in Solana and Avalanche collections this month. Wash trading is a form of market manipulation where an investor simultaneously sells and buys the same NFT to create misleading, artificial activity in the market. Although the NFT market had largely recovered from its long decline in the fourth quarter of 2023, looking at recent data it can be said that it is again going through a bearish phase.
Also Read: Union Budget 2024 Hopeful Outlook for Indian Crypto Exchanges
