Two factors re-ignite the spark in the NFT market.
The Nonfungible Token (NFT) market which was on a six weeks bearish phase witnessed a spark of life in April. This spark was ignited by the outstanding performance of two forces in the NFT space – Solana and Moonbirds.
DappRadar’s monthly report indicates that the NFT market hit a multi month high of over $6 billion last month. This growth represents a 23% rise fromit’s position in March. This data shows that the market breached the $billion dollar mark for just the third in history.
The performance of some new hyped projects also a contributing factor
It is equally unquestionable that many new hyped NFT projects contributed to the growth of the NFT trading volume. The highly hyped Otherside land mint known as otherdeed by Yuga labs is a very good case point. The project generated $760 million in just 24 hours on the day of minting. But the otherdeed factor is a bitter sweet one considering the fact that it drove up Ethereum chain’s gas fees to insane amounts. Traffic from it’s minting pushed gas fees to the north of 2.5 ETH as at the time of minting.
NFT market figures
The number of unique active active wallets interacting with decentralized applications grew last month. There were $3.26 million unique active wallets in April, a 0.2% increase from that of March. BNB chain and Wax contributed majorly to this growth, with both of them recording 568,000 and 492,000 unique active wallets respectively.
Despite the NFT market’s spectacular outing. The total value locked in decentralized finance (DeFi) did not fare better. The values dipped about 12% due to volatile token prices. But, on the flipside, Terra defied the common market trend. the protocol produced a 15% surge in total volume locked, with $30 billion locked in it.
The DeFi market also expanded despite the falling total volume locked and volatile token prices. The DeFi ecosystem recorded the addition of newer blockchains that poached Ethereum’s TVL dominance. These additions dropped Ethereum’s TVL dominance significantly from 94% to 59% last month.
Furthermore, Blockchain games continued to dominate the market despite the Axie Infinity’s Ronin Bridge hack and other major breaches. Gaming Dapps accounted for 52% of the industry’s unique active wallets. Top gaming platforms like Polygon and BNB also has significant on-chain activity. Finally, the NFT market had some low points in April but the overall performance was impressive.