October Brings Resurgence in NFT Market
In October, the non-fungible token (NFT) market experienced a significant rebound, recording an 18% increase in sales volume. This marked a noteworthy turnaround after a prolonged seven-month decline. According to data from CryptoSlam, the monthly sales volume for NFTs climbed to $356 million, up from approximately $300 million in September — the lowest figure recorded since 2021.
Analysis of Sales Trends
The NFT trading ecosystem had been witnessing a steady decline since March, when monthly volumes peaked at a staggering $1.6 billion. By September, the market had contracted considerably, experiencing a 20% drop from August’s figures. However, October brought a refreshing revival for the market, with not only an increase in sales dollars but also a significant rise in transaction activity.
Transaction Growth in October
In October, the total number of NFT transactions surged, reaching 7.2 million for the month. This represented a remarkable 42% increase compared to just five million transactions in September. Weekly data also revealed a spike in activity, notably between September 30 and October 6, where NFT sales achieved their strongest performance in over two months, amounting to over $84 million in trades.
Top-Performing NFT Collections
October saw several NFT collections leading the sales charts. The Mythos Chain-based DMarket topped the list, generating $33 million in sales throughout the month. It was closely followed by the Immutable-based Guild of Guardians Heroes, which achieved $13 million in sales volume. Ethereum and Bitcoin-based collections, including Bitcoin Puppets, Bored Ape Yacht Club, and CryptoPunks, also posted strong numbers, illustrating robust interest from collectors and investors.
Solana’s Remarkable Performance
Solana emerged as a key player in the NFT landscape this October, with collections such as DogeZuki, Froganas, and Retardio Cousins collectively accounting for nearly $25 million in sales. In total, Solana’s NFT ecosystem reached an impressive monthly volume of $67 million, representing 19% of the entire NFT market. This surge brought Solana’s cumulative sales volume to almost $6 billion, reinforcing its status as the second most prolific blockchain for NFT transactions.
Reflecting on Market Position
Despite the increase in sales, the NFT market remains significantly down compared to its all-time highs seen in 2021. A stark example of this is the recent resale of a CryptoPunk NFT, which initially sold for $23.2 million in 2022, but was recently sold at an astonishing 80% discount for 1,500 ETH, which equated to roughly $3.9 million. The original owner, Deepak Thapliyal, had purchased the NFT at 8,000 ETH and shared the experience on X (formerly Twitter). The new owner, VOMBATUS, characterized the acquisition as getting a “free” token, signaling both optimism and the current market volatility.
Industry Withdrawal and Challenges
While the NFT market witnesses a revival, several companies have decided to scale back or exit their involvement in this sector. In March, major coffee chain Starbucks chose to shut down its NFT rewards program, while GameStop announced in January the closure of its NFT marketplace after reducing its crypto operations over the previous two years. More recently, X, under Elon Musk’s ownership, discontinued a feature that allowed premium users to set NFT images as their profile pictures, reflecting a trend of cautious withdrawal from the NFT space by established brands.