NFT Market Resilient Despite Bearish Crypto Trend: Trading Volume Dips, But NFTs Thrive

• The NFT market has continued to thrive despite the overall bearish trend in cryptocurrency.
• In 2022, the NFT market saw a slight decrease in trading volume, though the number of NFTs traded increased significantly.
• Major cryptocurrencies crashed, sending the entire market into a frenzy, resulting in a drop in NFT prices.

The non-fungible token (NFT) market has remained resilient despite the bearish trend in cryptocurrency that has swept the market. According to NFTGO data, the single-day trading volume of the NFT market on Jan.5 exceeded 32,000 ETH, the highest level in three months. OpenSea’s ETH-denominated trading volume also reached a two-month high on the same day.

Although 2021 was the year NFTs most notably caught on, the interest in them decreased significantly in 2022. During that year, trading volume on the OpenSea platform, one of the biggest marketplaces for NFTs, dropped to around $350 million from $3 billion. DappRadar reported that the organic trading volume generated by the NFT market in 2022 was around $24.7 billion, a slight decrease from the $25.1 billion recorded in 2021.

The public scandals in the crypto market, such as the FTX collapse and the general waning interest in NFTs, contributed to the downfall of the NFT market in 2022. Additionally, major cryptocurrencies crashed, sending the entire market into a frenzy. This caused a drop in NFT prices, though the number of NFTs traded increased significantly.

The first quarter of 2022 saw a promising start for the NFT market, with DappRadar reporting a total trading volume of $12.4 billion. However, the following quarter saw a steady decline. During the second quarter, the trading volume was $8.4 billion, followed by the third quarter at $2.6 billion and the fourth quarter at $1.2 billion.

Despite the bearish trend in cryptocurrency, the NFT market has managed to remain resilient. Though the interest in NFTs decreased in 2022, the number of NFTs traded increased significantly. The public scandals and major cryptocurrency crashes caused a decrease in NFT prices, though the market still had a strong start in 2022. The NFT market continues to make strides and will continue to do so in the future.