The NFT (Non-Fungible Token) market has been experiencing a tumultuous year since the global pandemic struck. Last year, the market was largely inaccessible for trading due to lockdowns and related restrictions. Yet, the good news is that the market is showing signs of recovery.
In January of 2021, the NFT market saw its highest trading volume in 7 months. According to NonFungible.com, the total NFT trading volume for the month was $130 million. This is a significant improvement from the trading volume of $45 million in December 2020 and $25 million in November 2020.
The uptick in January can largely be attributed to the explosive growth of the NBA Topshot NFTs. Over the last few months, Topshot has been one of the biggest players in the NFT market and has led to an influx of activity in the market. In January alone, Topshot accounted for $210 million of the overall trading volume.
The NFT market also saw a large influx of new entrants in January. Many new blockchain projects entered the market, introducing their own NFTs, which also played a part in driving up trading activity. In addition, many new crypto wallets were also released in January, which bolstered the trading of NFTs.
Overall, the NFT market appears to be back on track and the industry is optimistic that the upcoming months will show even more growth in the sector. Despite the pandemic, 2021 looks to be a promising year for the NFT market and its investors.
