News Article Translation:
Title: Complexity in the Cryptocurrency and NFT Markets in February 2024
Author: [email protected]
Source: NFT Research Page – Footprint Analytics
In February 2024, the cryptocurrency and NFT markets showed complexity. The NFT market’s trading volume reached $1.2 billion, a decrease of 3.7% compared to the previous month. It is worth noting that well-known NFT series, including Azuki, MAYC, and BAYC, experienced significant declines in trading volume on various public chains such as Ethereum, Polygon, BNB Chain, Cronos, Optimism, and Sui, with a decrease of up to 32.1%. Additionally, the NFT performance of the game Gas Hero was poor, affecting platforms like Polygon and Mooar. Meanwhile, new narratives such as ERC404 and DN404 emerged during this period.
This report is based on the data provided by Footprint Analytics’ NFT Research Page. The page is a comprehensive and user-friendly dashboard that provides the latest statistics and indicators necessary to understand the pulse of the NFT industry, including transactions, projects, financing, etc.
Cryptocurrency Market Overview
In February 2024, both Bitcoin and Ethereum showed significant growth. Bitcoin experienced a strong upward trend with a 46.5% increase, reaching a closing price of $62,404, surpassing the $60,000 mark for the first time since the fourth quarter of 2021 and coming close to its all-time high by 9%. Ethereum performed even better with a growth rate of 48.1%, reaching a closing price of $3,383.
Source: Bitcoin and Ethereum Prices – Footprint Analytics
The significant increase in the cryptocurrency market in February was driven by multiple factors. Among them, the US Bitcoin ETF attracted a capital inflow of up to $6 billion in February, highlighting investors’ strong confidence in cryptocurrency as an effective store of value. Additionally, the market’s expectations for the Ethereum Cancun upgrade in March and the Bitcoin halving event in April further boosted prices. These factors together provided strong support for the cryptocurrency market’s growth.
However, broader market dynamics such as inflation concerns and US Federal Reserve policies may pose challenges to sustained growth. The rise in inflation rates in February implies that the expected rate cuts in the US may be delayed until later this year or even later, bringing uncertainty to the continued growth of the cryptocurrency market.
NFT Market Overview
In February, despite significant growth in the overall cryptocurrency market, the NFT market faced a decline. The trading volume of the NFT market reached $1.2 billion, a decrease of 3.7% compared to the previous month.
Analyzing data from public chains such as Ethereum, Polygon, BNB Chain, Cronos, Optimism, and Sui, we found that the trading volume dropped to $840 million, a decrease of 16.1% compared to January. At the same time, the trading volume declined by 25.8%, and the number of independent users (wallets) also decreased by 14.6%. This downward trend is partly attributed to the fewer number of days in February. Additionally, key NFT series experienced significant fluctuations, and changes in market dynamics and investor sentiment also contributed to the decline.
In February, the total trading volume of the top ten NFT series on these six public chains decreased from $570 million in January to $390 million, a decrease of 32.1%. These series accounted for 46.2% of the total market trading volume in February, compared to 56.2% in January.
Source: Top Ten NFT Series Trading Volume in February 2024 – Footprint Analytics
The trading volume of the leading series, Azuki, experienced a significant decline of 73.7%, dropping to $32.6 million. Meanwhile, the trading volume of Mutant Ape Yacht Club (MAYC) and Bored Ape Yacht Club (BAYC) declined by 42.0% and 18.2% respectively.
Although the trading volume of Pudgy Penguins decreased by 32.8% to $64.08 million, it still stood out as the highest trading volume series in February. Its floor price increased by 15.0% and came close to BAYC’s floor price. Meanwhile, Walmart expanded its partnership, introducing Pudgy physical toys into an additional 1,100 stores in the United States, totaling 3,100 stores. This not only enhanced Pudgy Penguins’ market influence but also marked an important step in the mainstreaming of Web3 intellectual property (IP), helping to increase its market share.
Moonbirds, ranked eighth, had a trading volume of $27.8 million. It is worth mentioning that Yuga Labs announced the acquisition of PROOF, including Moonbirds and other assets, on February 16th, which quickly boosted Moonbirds’ floor price and trading volume.
Nobody NFT Collection, created by Nobody in collaboration with Hong Kong director Stephen Chow, ranked fifth with a trading volume of $36.6 million. The series was released on the Moonbox platform, which aims to introduce AI-driven NFTs in the art and film industry. This release marks Stephen Chow’s official entry into the NFT field.
Public Chains and NFT Trading Market
In February, Ethereum continued to dominate the NFT market with a trading volume of $810 million, accounting for 97.1% of the total market trading volume. Although this number decreased compared to January, Ethereum’s market share slightly increased. Meanwhile, Polygon’s performance was less than satisfactory. Its trading volume dropped significantly from $110 million in January to $20.4 million, resulting in a sharp decrease in market share from 10.4% to 2.4%.
Source: Monthly NFT Trading Volume by Public Chains – Footprint Analytics
The number of independent users (wallets) on Ethereum decreased from 163,000 in January to 150,000 in February. However, its market share increased from 42.7% to 46.9%. Polygon also experienced a decline in the number of users, dropping to 129,000, reducing its market share to 40.4%. Meanwhile, BNB Chain’s market share grew modestly by 9.7%, with its user count reaching 31,000.
Source: Monthly NFT User Count by Public Chains – Footprint Analytics
According to Footprint Analytics’ data, Gas Hero, the NFT series of the Web3 game developed by Find Satoshi Lab, experienced a significant decline in trading volume of 87.2%, dropping to $12.3 million in February, contrasting sharply with its $96.1 million trading volume in the month it was launched in January. This decline had a significant impact on trading activities on Polygon and Mooar platforms, resulting in a significant decrease in trading volume. The Gas Hero team announced a strategic adjustment on February 28th, returning to the closed testing phase to optimize the economic model and enhance the user experience.
Source: Gas Hero NFT Series Daily Trading Volume – Footprint Analytics
In February, Blur maintained its leading position in the NFT market, although its trading volume decreased to $610 million. However, its market share increased from 68.3% in January to 73.1%.
OpenSea’s trading volume increased slightly to $170 million, successfully increasing its market share to 20.5% and reversing the previous downward trend. However, due to the aforementioned Gas Hero, Mooar’s trading volume significantly decreased to $12.3 million, resulting in a sharp decline in its market share to 1.5%.
Source: NFT Trading Market Monthly Trading Volume Percentage – Footprint Analytics
Despite a decrease in the number of independent users (wallets) from 279,000 in January to 224,000, OpenSea still holds a leading position in the NFT market with its large user base. Meanwhile, Blur’s user count increased to 61,000, while Element’s user count slightly decreased to 36,000.
Source: NFT Trading Market Monthly User Count – Footprint Analytics
NFT Investment and Financing
Public records show that three rounds of financing took place in the NFT market in February, a relatively quiet period for investment activities. Despite the overall slow progress, Animoca Brands was particularly active.
Binance Labs announced its investment in NFPrompt, one of its sixth season (S6) incubation projects.
WELL3, a project developed by YogaPez, successfully raised over $5 million through seed funding and NFT sales, with lead investment from Animoca Brands, Newman Group, and Soul Capital Partners.
Imaginary Ones, a unique 3D animated character NFT series, recently completed a new round of financing, with participation from investors such as Cypher Capital Group, Animoca Brands, and MH Ventures.
Key Developments in February
Pudgy Penguins’ physical toys will be sold in an additional 1,100 Walmart stores.
Yuga Labs acquired PROOF and Moonbirds.
Pandora proposed the ERC-404 concept, with its token skyrocketing 12,000% within a week.
The Ethereum trading market, in collaboration with Magic Eden, launched on February 27th.
Solana NFT cumulative trading volume exceeded $5 billion.
NodeMonkes set a new record for Bitcoin Ordinals as Bitcoin prices approached their all-time high.
The above research report includes:
Public Chains: Ethereum, Polygon, BNB Chain, Cronos, Optimism, Sui
Trading Markets: OpenSea, LooksRare, Blur, X2Y2, Cryptopunks, Rarible, SuperRare, Foundation, Decentraland, Aavegotchi, Element, Era7, the Sandbox, Minted, Clutchy, BlueMove, Hyperspace, Tocen, Keepsake, Mooar
Please note that the content of this article is for industry research and communication purposes only and does not constitute investment advice. The market carries risks, and investment should be cautious.
Footprint Analytics is a blockchain data solutions provider. With cutting-edge artificial intelligence technology, we offer the first no-code data analytics platform and a unified data API supporting over 30 public chain ecosystems, including NFTs, Games, and wallet address fund flow tracking.
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Tags: NFT, cryptocurrency, blockchain
Note: The views expressed in this article represent the author’s views and do not constitute investment advice.
Original Article Link: https://www.bitpush.news/articles/6366872
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