January 30, 2023
By Anjali Kochhar
More than 320,580 people purchased these assets, between January 01 and 21, 2023, according to the CryptoSlam.io report.
After recording a slump and bearish performance last year, the Non-Fungible Tokens (NFTs) are seemingly, on the path of recovery in 2023. As the third week of January 2023 came to an end, NFTs reported a 16 per cent hike compared to last year. The hike was mentioned in a report released by CryptoSlam.io. The question is – will this bullish streak continue? Or will it swindle back into 2022-like ashes?
Looking at NFT’s 2023 performance
NFTs, also known as digital collectables, have reported a 16 per cent hike in their sales this month, according to the CryptoSlam.io report. In fact, more than 320,580 people purchased these assets between January 01 and 21, 2023. This is the monthly performance so far. But after observing weekly figures, one can observe a shift in market sentiment.
In the first week of January 2023, NFT sales were up by 26 per cent, compared to the last week of 2022. Surprisingly, sales plummeted 59.35 per cent in the second week, according to a report published by bitcoin.com. The third week, in contrast, observed a hike of 43.48 per cent in NFT sales.
Among the top 20 blockchains that issue NFTs, Ethereum came out on top, accounting for 75.33 per cent of total sales reported between January 08 and 15, 2023. From a cumulative perspective, Ethereum-based NFTs have already observed a 24.78 per cent hike this year.
How’s the future looking – bullish or bearish?
Although NFT sales witnessed a recovery this year, one cannot deny the high volatility in the last three weeks. This bull-bear-bull see-saw trend is enough to avert investors from putting their money in a blockchain-based asset.
Even the cryptocurrency universe is fighting to revive investors’ trust after the FTX scandal. So, strong caution is likely to prevail in terms of investor sentiment.
In addition to scams and scandals, investors are worried about the supposed “crypto winter”, i.e., a prolonged bearish performance. This phenomenon is expected to penetrate other digital assets.
“Yes, this crypto-winder impacting the entire cryptocurrency market has started penetrating other verticals as well, including Decentralised Finance (DeFi), Meme Coins and NFTs,” said Keshav Aggarwal, founder, Bitcoin Investor Community.
The upsurge in NFT sales is a momentary streak, not an indication of future bullish performance. So, what is the reason behind this surge?
Aggarwal reasoned, “It may all be due to hype in the market surrounding NFTs. But I believe such images will easily be created by text, using Artificial Intelligence (AI). Once this happens, this hype will fade away.”
Along with crypto-winter, NFT sales will also follow the securities market. With the US Fed’s upcoming meeting and inflation figures, stocks will remain flat or bearish. Invariably, NFTs will follow suit with similar performance.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.