Interest in NFTs saw a spike in January 2022: Report

The trading volume of NFTs increased by 17.9% between Q4, 2021 and Q1, 2022

Ethereum had an 85% market share at the end of March
Ethereum had an 85% market share at the end of March

Interest in NFT dealings increased in January 2022, according to a report by CoinGecko. This is likely because NFTs are priced in native network tokens, which became cheaper in USD terms, the report said. It added that the other possible reason is because market participants have no interest in trading under poor market conditions and divert their time and attention into NFTs. To be noted, NFT trading volumes fell in the latter half of Q1, 2022.

According to data from the report, Ethereum had an 85% market share at the end of March. Blockchain platforms such as Avalanche had the biggest volume increase of 6,610.6%, while Ronin suffered the biggest loss of 94.2%, for the same period.

Insights from the report showed that blockchain platform OpenSea’s market share was briefly at risk in January, 2022. This happened after its new competitor LooksRare, executed a vampire attack by airdropping OpenSea users with $LOOKS. By the end of the month, LooksRare had roughly half the trading volume of OpenSea. However, at the end of Q1, OpenSea was 6.7 times bigger. Magic Eden surpassed Solanart to become the dominant Solana NFT marketplace.

“Time will tell whether this lasts as OpenSea will integrate Solana NFTs in April 2022,” the report noted. 

The report also highlighted trends in the space. For instance, Yuga Labs, the founders of the NFT platform Bored Ape Yacht Club (BAYC), acquired the commercial and licensing rights of NFTs CryptoPunks and Meebits. Weeks after its acquisition, Yuga Labs raised $450 million at a valuation of $4 billion. While BAYC teased the launch of its $APE token in October 2021, in March, 2022, the $APE token was airdropped to all BAYC and MAYC holders. There is also a speculation regarding Yuga Labs will be building out its own marketplace, all of which will be transacted in $APE token.

(With inputs from the CoinGecko Report, 2022)

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