What Bear Market? NFT Volume Continues To Grow Despite Crypto Decline

The NFT market has made some of the largest strides in the crypto market given that they have only been in the mainstream for about a year. Their growth throughout 2021 was nothing short of phenomenal, leaving millionaires in their wake. With the recent crypto market crash, a lot of various sectors in the market […]
The NFT market has made some of the largest strides in the crypto market given that they have only been in the mainstream for about a year. Their growth throughout 2021 was nothing short of phenomenal, leaving millionaires in their wake. With the recent crypto market crash, a lot of various sectors in the market […]

The NFT market has made some of the largest strides in the crypto market given that they have only been in the mainstream for about a year. Their growth throughout 2021 was nothing short of phenomenal, leaving millionaires in their wake. With the recent crypto market crash, a lot of various sectors in the market have taken a hit, be it in price or in community support. However, NFTs appear immune to this as trading volume continues to grow.

NFT Trading Volume UP

The year 2022 has been a hard one for investors in the crypto market. Most have seen the values of their entire portfolio decline in this time, which has, in turn, greatly impacted the trading volume across these various assets. NFTs, however, has proven to be different from the rest of the market in this regard.

Through the market crash of the past month, NFT volume has not stagnated. It has continued to rise even when sentiment in the market has dropped far into the negative. An example of this is the fact that at the start of the month of June, the NFT market volume had been at $62.2 billion. Now, this volume sits at almost $63.4 billion.

Related Reading | Ethereum Denominated Open Interest Skyrockets As Price Declines

Although this growth isn’t a large one by any stretch, it goes to show how investors are looking at NFTs during this time. NFT collections continue to record notable daily sales across the various marketplaces, although the dollar values are down due to the price decline in recent weeks. 

Not Following DeFi Market

The decentralized finance (DeFi) market has taken a huge hit with the market downtrend. Reports show that the market is down more than 70% from its all-time high, and faith in the space has gone done tremendously since then. Despite the NFT market coming into mainstream popularity alongside the DeFi market, it has not exactly mirrored this decline.

The number of wallet addresses holding NFTs on their balances is also on the rise. The growth since the beginning of the year has been significant. Growing from 3.35% of addresses holding NFTs to 5.29% of addresses holding NFTs. This means that more than 4.1 million addresses are currently holding NFTs on their balances.

DeFi NFT

NFT collections grow more than 100% | Source: IntoTheBlock

The number of NFT collections in the space has also been on the rise and recorded explosive growth this year too. At the start of January, there were only about 39,000 collections in the space. As of the time of this writing, data shows that there are over 133,000 collections presently.

Related Reading | DeFi Total Value Locked (TVL) Declines 35% In One Month To 15-Month Lows

Bored Ape Yacht Club and CryptoPunks continue to lead the market in terms of sales. However, there are others who have been making their mark in the space such as the Okay Bears collection that was launched on the Solana network.

Featured image from Information Age, chart from TradingView.com

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