December NFT Market Dynamics: Strong Growth Shapes Year-End Trends
In December, there was a significant upward trend in the cryptocurrency and NFT sectors, with substantial price increases for Bitcoin and Ethereum marking the market's recovery.Author: stella@footprint.network
Data Source: NFT Research
In December, there was a significant upward trend in the cryptocurrency and NFT sectors, with substantial price increases for Bitcoin and Ethereum marking a market recovery. Meanwhile, the trading volume in the NFT space surged, and the number of unique users (wallets) also increased, indicating that the NFT industry is continuously growing and gradually maturing.
This report is based on data provided by Footprint Analytics' NFT Research Page. This page is a comprehensive and user-friendly dashboard that offers the latest statistics and metrics necessary to understand the pulse of the NFT industry, including trading, projects, financing, and more.
Key Highlights
Cryptocurrency Market Overview
In December, Bitcoin performed exceptionally well, starting the month at $37,729 and ending at $42,171, an increase of 11.8%.
The optimistic sentiment in global stock markets and anticipated interest rate cuts by the Federal Reserve boosted investor confidence, positively impacting the cryptocurrency sector.
NFT Market Overview
In December, the NFT market trading volume significantly increased by 32.3%, reaching $850 million.
The market capitalization of the NFT sector started at $5.24 billion and ultimately grew by 6.5% to $5.58 billion.
The blue-chip index also saw an increase, rising by 4.6%.
Public Chains and NFT Trading Markets
In December, different public chains exhibited diverse trends in user participation.
The NFT market trading volume for 2023 was $13.12 billion, a decline from the previous year's peak. Ethereum's market share slightly decreased to 97.8%, down from 99.8% in 2022, indicating a gradual diversification of the market.
In 2023, the annual trading volume of the NFT trading market showed significant changes compared to the previous year. Blur achieved an impressive annual trading volume of $7.26 billion, far exceeding 2022's $650 million.
NFT Investment and Financing Situation
Compared to November, the NFT sector's investment and financing activities were more active this month, with five rounds of financing raising a total of $160 million.
LINE NEXT secured $140 million in investment led by Crescendo Equity Partners.
Key Developments This Month
Ubisoft's game "Champions Tactics: Grimoria Chronicles" launched its NFTs ahead of the game's release.
Forbes Web3 Community Center has created a wallet specifically for the long-term collection of NFTs.
Animoca Brands' NFT series Mocaverse completed nearly $11.89 million in financing.
Magic Eden integrated its NFT marketplace into the blockchain game Honeyland.
Cryptocurrency Market Overview
In December, Bitcoin performed exceptionally well, starting the month at $37,729 and ending at $42,171, an increase of 11.8%. Ethereum also exhibited a similar upward trend, starting at $2,052 and ultimately closing at $2,293, an increase of 11.7%.
Data Source: BTC Price & ETH Price
Meanwhile, global stock markets generally displayed optimistic sentiment, particularly evident in countries like the United States, India, Japan, France, and Germany. This optimism, along with anticipated interest rate cuts by the Federal Reserve, boosted investor confidence and positively impacted the cryptocurrency sector. Additionally, the U.S. is expected to soon approve a spot Bitcoin ETF, while Hong Kong is also ready to accept applications for spot cryptocurrency ETFs. These factors further heightened bullish sentiment in the market. The synergy between traditional financial markets and the cryptocurrency ecosystem is becoming increasingly apparent.
NFT Market Overview
In December, the NFT market trading volume significantly increased by 32.3%, reaching $850 million, with the number of transactions rising by 29.4% to 1,384,729, and the number of unique user wallets also increasing by 21.4% to 297,432.
Data Source: NFT Market Overview
The market capitalization of the NFT sector started at $5.24 billion and ultimately grew by 6.5% to $5.58 billion.
Data Source: NFT Market Cap & Volume
The ratio of buyers to sellers was 102.1%, an increase of 1.45% from November. Specifically, there were 180,232 buyers (up 22.7%) and 176,607 sellers (up 21.0%).
Data Source: Daily Buyers & Sellers
The blue-chip index also saw an increase, rising by 4.6%.
Data Source: BlueChip Index
According to data from Footprint Analytics, Pudgy Penguins and Mocaverse achieved significant growth this month. The floor price of Pudgy Penguins increased by 64.4%, rising from 6.46 ETH to 10.62 ETH, while the floor price of Mocaverse increased by 51.6%, from 2.23 ETH to 3.38 ETH. Additionally, following a $20 million investment in September 2023, Animoca Brands raised an additional $11.88 million for Mocaverse this month.
Data Source: Market Cap Distribution in December
Public Chains and NFT Trading Markets
In December, Ethereum continued to maintain its market leadership, with a trading volume of $840 million, accounting for a remarkable 98.1%, with trading volume significantly increasing by 31.8% compared to November.
Data Source: Monthly Volume by Chain
Different public chains exhibited diverse trends in user participation. Ethereum continued its upward trend, with the number of unique users at 156,000, a 10.9% increase from November. Meanwhile, Polygon's user count rose by 19.2% to 110,000, reversing its previous downward trend. BNB Chain also rebounded, with user numbers reaching 24,000, a 41.8% increase, although still below the peak in July. Sui's user count doubled to 18,000.
Data Source: Monthly Unique User by Chain
On a macro level, the NFT market trading volume for 2023 was $13.12 billion, a decline from the previous year's peak. Ethereum's market share slightly decreased to 97.8%, down from 99.8% in 2022, indicating a gradual diversification of the market.
Data Source: Yearly Volume by Chain
In 2023, Polygon led in unique user growth, with an astonishing increase of 231.0%, reaching 1.28 million users. However, Ethereum's user count declined by 45.2% to 1.19 million users, reflecting a shift in user preferences among different public chains. BNB Chain's user base expanded to 350,000, a 280.7% increase from 2022.
Data Source: Yearly Unique User by Chain
In December's NFT trading market dynamics, we observed some significant changes. Blur's trading volume grew by 45.4%, reaching $620 million, while OpenSea's trading volume increased by 25.2% to $190 million. However, X2Y2's trading volume declined by 32.0%.
Data Source: Monthly Volume by Marketplace - Distribution
Additionally, OpenSea's unique users increased by 14.0% in December, reaching 232,702, further solidifying its market leadership. Unique users for Blur and Element also grew by 19.0% and 18.6%, respectively.
Data Source: Monthly Unique Users by Marketplace
In 2023, the annual trading volume of the NFT trading market showed significant changes compared to the previous year. Blur achieved an impressive annual trading volume of $7.26 billion, far exceeding 2022's $650 million. Although OpenSea's trading volume decreased from $20.91 billion to $3.31 billion, it still holds a certain influence in the market.
Data Source: Yearly Volume by Marketplace
Meanwhile, Blur's user base grew by 189.8%, reaching 291,579 users, marking its rapid rise in the NFT market.
Data Source: Yearly Unique Users by Marketplace
NFT Investment and Financing Situation
Compared to November, the NFT sector's investment and financing activities were more active this month, with five rounds of financing raising a total of $160 million.
December 2023 NFT Project Financing Situation
Among them, LINE NEXT, a subsidiary of LINE focused on NFT development, secured $140 million in investment led by Crescendo Equity Partners. This is the largest financing in the Asian Web3 sector for 2023. This round of financing will support LINE NEXT in launching its global NFT platform DOSI in January 2024.
Source: DOSI Citizen
As we bid farewell to 2023, the robust trends and ongoing changes in the NFT market suggest that 2024 will be a groundbreaking year. NFTs are rapidly transcending their role as traditional digital collectibles, becoming a medium that represents user individuality, perfectly blends the digital and physical worlds, and fosters user co-creation. This shift marks a clear advancement towards broader mainstream applications. As the diversity of user participation continues to expand, the emergence of more platforms is building a multidimensional and rich NFT ecosystem, laying a solid foundation for ongoing innovation and growth in the future.
