With the Fed likely to continue raising interest rates in 2023, the macro community fears an amplified recession. The crypto space’s future has become harder to predict.
Will this fear filter into NFT projects and ecosystems? Let’s take a look at the NFT market condition and how it’s reacted, beginning with Ethereum.
1) Ethereum Sentiment
Until recently Ethereum remained well over the $1,220 zone. As of Friday 16th Dec, Ethereum trades below the psychological number of $1,250 and the 100 hourly simple moving average. A close above the $1,220 support can induce an upward movement. The next significant resistance of ETH is at the $1,320 level but bulls appear to have taken their Christmas holidays early.
The on-chain data reveals that the daily active addresses metric for Ethereum is presently at its highest level since May 2021. Usually, high values for this metric indicate that investors are currently interested in trading ETH. And as many holders move their coins for selling purposes, it is only logical for ETH to have intense spurts of activity.
2) NFT Market Cap & Volume & Sales Increase
Total sales (USD) over the week increased by 42.37% to $100 million despite a decline in sales (2.77% to 96K). The last time the total sales broke the $100M threshold was many weeks ago. The active wallets in the market remained constant this week.
The total weekly market volume doubled this week. It rose by 99.73% to $188.63 million, whereas the market cap remained at $21.26 billion, unchanged from the previous week.
On the other hand, blue-chip NFTs showed mixed performance this week. Collections like CryptoPunks, Art Blocks, and Solana NFTs like DeGods and y00ts performed poorly. Their volumes declined by more than 30%. On the other hand, blue-chip NFTs like BAYC, MAYC, and Doodles showed a substantial increase in their weekly volume and number of traders.
3) NFT Holders Hold Steady Whilst Traders Are Slowing
There was a slight decline of 4.57% in the number of traders this week. The number of holders continues to be practically unchanged, with a measly 0.34% increase. The whales hold NFTs worth $1.43B, occupying 11.4% of the global market cap of $12.44B.
4) NFT Users and Transactions on OpenSea remain steady
The total number of transactions in the OpenSea was 220.94k, similar to the previous weeks. The balance in the Smart Contract stayed at $56.05k despite the volume increase in OpenSea by 3.74% to $44.86M. The number of unique wallet addresses interacting with OpenSea lowered by 1.87%.
5) Solana NFTs have Resurfaced
Solana’s price has rebounded from its previous lows amid the earlier recovery wave in the crypto market. Bulls are eager to take SOL higher and challenge the $15 psychological level. But with the current market situation, chances of that happening anytime soon are slim.
The Solana NFT market is in terrible shape, as most marketplaces are experiencing a drop in volume. Magic Eden, the biggest marketplace in Solana, saw a 13% volume loss. The number of traders in the market fell by 6.72% too.
6) Volumes of Tezos NFTs Continue Falling.
$XTZ displays a growing trend to the downside after failing to surpass the $1 resistance level. The token is currently trading at $0.94. So, Tezos needs to close above for a possible trend reversal.
The Tezos NFT market is in disarray as its volume continues to drop. Even average pricing as well as overall traders are declining. The Tezos NFT market is still dominated by Objkt.com, with a weekly trade volume of about $181.7K. The volume decreased 16% from last week. With the exception of Hic et Nunc and Fxhash, the volumes on all other markets have also declined.
7) Quick News Round-Up
1. Class action lawsuit against Hollywood Celebs for promoting NFTs
- The list includes Justin Bieber, Madonna, Kevin Hart, Snoop Dogg, etc.
- The plaintiffs demand a jury trial requesting damages for all buyers of Yuga’s NFTs or its cryptocurrency, ApeCoin, after April 23, 2021, who experienced financial losses.
2. Magic Eden to reward loyal traders with discounts and free NFTs
- Magic Eden is introducing a loyalty program for Solana NFT trades that includes perks, special prices, and possibly free NFTs.
- Starting in 2023, the market will adopt a “dynamic maker/taker” platform fee model, with heavier traders receiving greater discounts.
3. Apple to allow third-party app stores; boon for crypto and NFTs?
- In light of upcoming EU legislation, Apple intends to permit the installation of iOS apps from outside sources.
- The action may aid the creation of NFT-based apps and increase the range of cryptocurrencies that can be paid for using iPhones and iPads.
4. Morningstar Ventures to open ‘37xDubai’ NFT Art Gallery
- 37xDubai will begin accepting visitors early in March 2023, right before Art Dubai.
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