The market for non-fungible tokens (NFTs) is undergoing a notable resurgence, as October recorded a substantial 32% increase in trading volume compared to the previous month. Data released by the crypto data firm DappRadar reveals that NFT trading volume experienced a remarkable surge of $99 million, reaching a total of $405 million in October. This represents trading levels that haven’t been seen since August.
DappRadar’s report emphasizes that this growth marks a significant departure from the year-long downward trend that the NFT market had been experiencing. It provides promising signs of recovery, instilling renewed optimism in projects that have encountered challenges throughout the year.
Although the market for profile picture (PFP) projects, such as Yuga Labs’ Bored Ape Yacht Club (BAYC), had slowed down during the crypto winter, the recent upturn in NFT trading volume might signify a more extensive reawakening in the digital assets sector.
This surge in NFT trading volume aligned with Bitcoin’s price rebounding above $35,000, marking its highest point in 16 months. Analysts speculate that this price increase was fueled by the anticipation of a potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
Solana NFTs Continue to Find Momentum
DappRadar’s report also highlighted Solana (SOL) as a notable blockchain network that displayed growth. The NFT trading volume on Solana, a high-speed layer-1 blockchain, increased by 15%, surging from $24 million to $27.6 million.
Solana’s native cryptocurrency, SOL, also experienced a significant price boost in October, with a remarkable 65% increase, climbing from $23 to approximately $38, as reported by CoinGecko.
Ethereum (ETH), the second-largest cryptocurrency, continued to lead in NFT trading. It recorded a 50% increase in trading volume across various blockchains that support NFTs.
However, the report noted that while Ethereum saw growth, other blockchain networks saw a significant decrease in sales volume. Polygon, Starkware, and Flow witnessed declines of 48%, 42%, and 32% in their NFT sales volume, respectively.
As NFT trading regained momentum in October, the floor prices of popular PFP projects also experienced an uptick. For example, the floor price for NFTs from the Bored Ape Yacht Club surged from around $40,000 worth of Ethereum to approximately $55,000.
While the increase in trading activity may bring optimism to NFT traders, it’s crucial to note that October’s trading volume of $405 million is still considerably lower than the $2 billion in NFT sales witnessed in March.
Furthermore, NFT sales continued to decline last month, with the total number of NFTs sold decreasing by 5%, from 3.58 million in September to 3.4 million in October, according to DappRadar’s data. Nevertheless, this decline was less severe when compared to the substantial drop of 290,000 NFT sales that occurred in August.