- December has witnessed an increase in the NFT sentiment.
- Most of the increase in the ETH took place in the Blur marketplace.
- The demand for physical utilities has increased.
NFTs have been witnessing a decline in numbers and popularity this year. However, they have not gone out of sight completely. After “panic” mode struck the market, investor sentiment cooled down.
According to Block Research, the levels of marketplace activity per week increased tremendously at the beginning of the year and remained elevated until the second week of May. The decline was initiated when the Terra ecosystem crashed and came to level zero.
The second half of 2022 witnessed a decrease in the number of users. The number declined to a level similar to that of 2021.
In December, some popular projects started by the companies, like the beta version launched by the Starbucks NFT loyalty program and the NFT “trading cards” introduced by former US president Donald Trump, changed the scenario.
Some other notable cases are the addition of gaming NFTs to ImmutableX and the Pudgy Penguins‘ floor price flipping the doodles.
Since May, the first time the volume touched more than 30000 ETH was on December 10th. The research directors of Proof.xyz, NFTstatistics.eth had tweeted that most of the ETH volume occurred in the Blur marketplace. It has been for the collection of blue chips, in particular.
Gordon-Sand said that last year, many people rode the wave at the right time because they were in the right place and got lucky. But now, he said, it is complicated as we witness the founders rising to the top.
Dibbs, a fractional trading card marketplace, that is enabled by blockchain, has recently released a report on “NFT Sentiment” after completing a survey on hundreds of NFT adopters. They found that almost 85 percent of the people would like to purchase the NFTs because they are redeemable for physical items.
This result shows that the demand is for both digital and physical utilities. Some collections, like Nike’s RTFKT, created sneakers with chips for connecting digital assets with physical ones through their RTFKT mobile app.
If the trend started in December continues in the market in 2023, the adoption of further NFT loyalty programs and the digital assets present in-game can propel the NFT market to the levels achieved in early 2022.