Decline in NFT Market
According to a report by DappRadar, the total market capitalization of NFT collections deployed on Ethereum (ETH) experienced a significant decrease of 59.6% in the year 2022. The report shows that the aggregate market cap of ETH-based NFT projects started at $9.3 billion and ended the year at $3.7 billion.
Yuga Labs and its NFT Collections
Yuga Labs is responsible for some of the most popular NFT collections, including CryptoPunks, Bored Ape Yacht Club (BAYC), Bored Ape Kennel Clum (BAKC), Mutant Ape Yacht Club (MAYC), Meebits, and Otherdeeds for Otherside. Out of these, CryptoPunks and BAYC make up 46.7% of the entire ETH NFT market cap. In January, BAYC recorded a trading volume of $49 million, with a floor price of $98,438.
Rise in NFT Trading
The NFT market saw a significant boost in January, with a 38% increase in trading volume from approximately $700 million in December 2022, according to DappRadar. The trading volume reached an all-time high of $946 million, while NFT sales count increased by 42% from 6.7 million in December to 9.2 million in January. The trading volume of the chain recorded a 37% increase, going from $480 million in December to $659 million in January.
Solana (SOL) and Polygon (MATIC) followed ETH, with $85 million and $46 million in trading volume, respectively. SOL recorded a 23% increase from December, while MATIC recorded the third-highest growth rate of 124%. Avalanche (AVAX) and Tezos (XTZ) had the first and second-largest monthly growth rates, at 451% and 150% respectively. On the other hand, Immutable X (IMX) and WAX (WAXP) saw decreases of -3% and -32% in January.