NFTs show signs of revival as weekly volumes turn positive.
In a positive turn of events, NFT sales volumes have shown a notable rebound across several major blockchains.
Polygon has emerged as the standout performer with an impressive 123.20% increase in weekly sales volumes. This marks a significant recovery for the NFT sector, which had previously been experiencing a series of declines in 2024.
According to data from NFT tracker CryptoSlam, the week of August 26 saw a strong uptick in sales volumes for digital collectibles on the leading blockchains. Ethereum, Solana, Polygon, and Mythos Chain all reported gains in NFT sales. Polygon led the charge with a substantial 123.20% increase in sales over the past seven days. Ethereum also saw a notable rise, with a 32.79% increase in weekly sales. Solana followed with a more modest 12.13% growth in its sales volumes.
Despite these positive trends among most of the top five NFT blockchains, Bitcoin was the exception. The Bitcoin blockchain experienced a slight decline, with a 7.01% decrease in NFT sales volume compared to the previous week, as reported by CryptoSlam.
In addition to the increase in weekly sales volumes, there has been a notable rise in the number of NFT buyers. Over the past week, the number of NFT buyers surged to over 500,000, marking a 37.97% increase from the week before. Solana led in buyer activity with 220,304 NFT buyers, followed by Polygon with 89,498 buyers, and Ethereum with 44,188 buyers.
Despite these positive short-term developments, the broader trends paint a more cautious picture. The increase in weekly sales volumes has not been sufficient to counteract the overall downward trend in the NFT market’s monthly sales volumes. The digital collectibles sector saw a significant 45% decline in sales during the second quarter of 2024, with total sales dropping to $2.24 billion. This represents the lowest performance since the third quarter of 2023.
The decline in sales volumes came amidst a generally negative outlook for Bitcoin, a leading force in the NFT market. July recorded the lowest monthly sales volume for NFTs since November 2023. However, despite the drop in volume, there was a 73% increase in the number of transactions involving blockchain-based digital collectibles. Over the past 30 days, NFT sales volumes have continued to trend downward, showing a 40.91% decrease.
This mixed performance highlights the complexities of the NFT market, where short-term gains in sales volumes and buyer activity can sometimes overshadow longer-term declines in overall sales.
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