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As January trading volumes reached a 7-month high, the NFT market is showing signs of recovery

There are signs of life in the non-fungible token market. According to the Dapp Industry Report: January 2023, trading volumes increased for two consecutive months, with January seeing the largest levels since June of last year.

Trading volumes dropped to a reportable low of $662 million in October, but the market reversed course in November to remain at that level throughout the rest of the month. January’s rise was a sharp departure from this pattern.

Later that month, volumes increased to $683 million, and in January, they jumped by $38.5 million, reaching $946 million.

NFT aggregator CryptoSlam found that while several blockchains facilitate NFT trading, Ethereum has maintained the lead with over $36 billion in total sales. Second and third largest blockchains by NFT sales volume overall were Ronin and Solana, with around $4.2 billion and $3.7 billion.

Trading volumes for Ethereum and Solana were $659 million and $85 million, respectively, in January.

There are encouraging early indications that February will continue the momentum from January. According to CryptoSlam statistics, on February 3rd, Ethereum’s blockchain recorded sales of $26.5 million from more than 25,500 different customers.

Despite the fact that Ethereum is responsible for more than 78% of all blockchain trades, the survey found that Polygon had the greatest increase of traders throughout the month of January.

From December to January, Polygon’s trading volume increased 124%, to $46 million. Sales of NFTs on the blockchain increased by 43.5% in the preceding week, reaching $2.8 million. This growth shows that blockchain technology is continuing to attract more users.

When two major Solana NFT projects, DeGods and y00ts, announced in late December that they will exit the blockchain in 2023, it sparked a range of reactions. Both DeGods and y00ts have announced their respective migrations; DeGods to Ethereum and y00ts to Polygon.

“At the beginning of the year, we realised that much of the creative economy’s interest was concentrated on ETH and Solana,” Polygon Studios’ CEO Ryan Wyatt told TechCrunch. For this reason, we’ve opted to buck the industry norm by bringing on board major business brands, DeFi platforms, and gaming firms to fully realise the promise of web3. We were able to achieve our goals with the help of ecosystem funds and a plethora of well curated partnerships.

The diversification of alliances to blockchains by major NFT collections like DeGods and y00ts may also attract holders who are looking for new options or who perceive value elsewhere.

The crypto market’s consistent increase over the past few months may be indicative of a larger rising trend. As inventors and initiatives try to cash in on the booming market, this might also encourage them to develop novel applications for NFTs.