In February, the NFT Market Explodes With $2 Billion in Trading Activity

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Last Updated on March 5, 2023 by Bitfinsider

The Non-Fungible Token (NFT) market kept expanding quickly and drew a broader variety of collectors. A recent report from DappRadar showed that the ecosystem’s trading traffic significantly increased in February.

For the first time since May 2022, the study claims that NFT sales volume in February increased to a high of $2 billion. According to DappRadar, Blur (BLUR), a well-known NFT project, was the main driver of the rise, seeing $1.2 billion in trading volume on its own, an increase of 117% from the previous month.

With a total sales volume of $1.6 billion in February, Ethereum (ETH) continued to dominate the NFT market. However, DappRadar discovered that trading volume on Polygon (MATIC) increased by an astounding 147% over the course of the 28-day timeframe.

Dune Analytics data showed that in February, collectors on OpenSea traded Polygon-based NFTs worth $109 million, driving the monthly sales volume to an all-time peak.

The amount of sales for Ethereum-based NFTs increased to the greatest level seen so far this year. Dune Analytics reports that the monthly sales volume was $647 million, up 45% from the $446 million tallied in January.

The increase in traders was one factor contributing to the spike in the selling of NFTs produced by Polygon on OpenSea. The number of monthly active traders increased to its highest level since September 2021, which was followed by an impressive increase in sales value. Dune Analytics estimates that 226,880 monthly active users exchanged Polygon-minted NFTs on OpenSea.

On the other hand, OpenSea Ethereum experienced a 5% decrease in the number of active monthly buyers in February.

The number of NFTs sold on OpenSea in February was another difference between NFTs based on Polygon and those based on Ethereum. According to Dune Analytics data, OpenSea Polygon NFTs saw a 15% rise in monthly sales. However, during the same window period, the quantity of Ethereum-based NFTs sold on OpenSea fell by 28%.

While increased user activity on Blur helped Ethereum maintain its 83.36% market share in February, Glassnode, in a newly released report, stated: “The recent attention surrounding Blur has led to a surge in demand for blockspace, resulting in increased fees for validators, and more ETH being burnt via EIP1559.”

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