NFTs are making a resurgence, as trading activity in the sector has surged by 166% in 2023, driven by positive price swings in the crypto market and the approval of 11 spot Bitcoin exchange-traded funds (ETF). According to a report by DappRadar, there has been a significant increase in the number of wallets trading and using NFTs, contributing to the rise in trading activity.
The Dapp industry as a whole has also experienced substantial growth in 2023. The number of Unique Active Wallets (UAW) rose by 124%, reaching approximately 4.2 million daily UAW by the end of the year. However, while the quantity of NFTs sold has increased by 445% to 60 million, NFT prices have not seen the same level of surge as observed in 2021. Trading volume dropped by 49% to $12.6 billion due to the cheaper prices of NFTs.
In the coming year, brand loyalty and decentralized finance (DeFi) are expected to positively influence the NFT market. The entry of major brands like Samsung, Gucci, and Nike into the space further solidifies its appeal and accessibility to the mainstream audience. Notably, Blur emerged as the top platform for NFT trading volume, experiencing a 56% year-on-year growth, while OpenSea maintained the highest trader count with an average of 280,000 traders per month.
DappRadar approved a total of 2,985 Dapps in 2023, with a significant portion focused on NFTs and blockchain games. NFT collections accounted for 25% of the approved Dapps, while blockchain games made up 21%. Despite experiencing a decline in previous years, analysts remain confident in the future success of NFTs. Forecasts suggest a compound annual growth rate of 34.2% from 2023 to 2030, emphasizing the phenomenal surge in the value of digital assets.
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