January NFT Market Dynamics: Polygon Growth, Mooar Rise, TinFun Sparks Cultural Wave

Author: stella@footprint.network

Data Source: NFT Research - Footprint Analytics

In January 2024, the cryptocurrency and NFT markets reached a significant turning point, particularly highlighted by the debut of the first spot Bitcoin ETF in the United States, a milestone event in financial integration that attracted the attention of numerous investors. Meanwhile, the NFT sector also experienced remarkable growth, with significant increases in trading volume and user activity. Additionally, this month showcased a transformation in the NFT market, with the rise of Polygon, platforms like Mooar, and culturally rich projects like TinFun becoming focal points. In contrast, OpenSea expressed an open attitude towards acquisition deals amidst a series of market changes.

This report is based on data provided by Footprint Analytics' NFT Research Page. This page serves as 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

• Bitcoin started at $42,303, rising slightly by 1.65% to close at $43,001; Ethereum began at $2,283, increasing by 2.77% to close at $2,346.
• The broader cryptocurrency market is shifting towards exploring the synergy between crypto and AI. Against the backdrop of the Federal Reserve's decision to maintain stable interest rates, the market capitalization of stablecoins has steadily increased.

NFT Market Overview

• In January, the NFT market saw strong growth, with trading volume reaching $1 billion, a month-on-month increase of 17.3%.
• Pudgy Penguins maintained its popularity, ranking third in trading volume among the top ten, while its sister project Lil Pudgys ranked eighth.
• The NFTs from the blockchain game Gas Hero, especially the Common Heroes and Items series, saw a surge in trading volume in January, ranking among the top ten for the month.
• TinFun has entered the top ten in trading volume since its debut in January 2024.

Public Chains and NFT Trading Markets

• Ethereum led the NFT market with a trading volume of $900 million, holding a market share of 89.1%, but this is the lowest level since 2021.
• In January, trading activity on Polygon significantly increased, with trading volume reaching $110 million, a 97.2% increase from the previous month.
• OpenSea saw its market share continue to decline, dropping from 20.8% to 16.6%, with trading volume decreasing by 10.1% to $170 million.
• The popularity of the blockchain game Gas Hero significantly boosted the trading volume of Mooar and Polygon in January, highlighting the game's impact on market dynamics.

NFT Investment and Financing Situation

• In January, the NFT investment and financing market remained stable, with a total of 5 rounds of financing amounting to $26.4 million.

Key Developments This Month

• OpenSea launched a new feature allowing users to create crypto wallets using email.
• Binance Labs announced an investment in Memeland's native token Memecoin (MEME).
• Tune.FM announced the completion of a $20 million financing round.
• OpenSea CEO: The company has received acquisition interest and is open to acquisition deals.

Cryptocurrency Market Overview

In January 2024, Bitcoin and Ethereum continued to trend upward, although the growth rate slowed. Bitcoin started at $42,303, rising slightly by 1.65% to close at $43,001; Ethereum began at $2,283, increasing by 2.77% to close at $2,346.

Data Source: Bitcoin and Ethereum Prices - Footprint Analytics

The debut of the U.S. spot Bitcoin ETF in January 2024 marked a key moment for the cryptocurrency market, with these ETFs attracting investor attention with daily trading volumes reaching up to $210 million, reflecting a deeper integration of cryptocurrencies into the traditional financial ecosystem. Despite the market's excitement, the prices of Bitcoin and Ethereum remained relatively stable, indicating that traders remained cautious following the ETF approval.

At the same time, the broader cryptocurrency market is shifting its focus towards exploring the synergy between the crypto industry and AI. Against the backdrop of the Federal Reserve's decision to maintain stable interest rates, the market capitalization of stablecoins has steadily increased. This period marks a subtle evolution in the crypto space, reflected in both the institutional adoption achieved through the approval of Bitcoin ETFs and the ongoing balancing considerations of macroeconomic and technological developments.

NFT Market Overview

In January 2024, the NFT market experienced strong growth, with trading volume reaching $1 billion, a month-on-month increase of 17.3%. The number of transactions surged by 26.2%, totaling 1,747,453, while the number of unique users (wallets) grew by 20.5% to 358,280. These statistics highlight a significant upward trend in market activity and user engagement, further emphasizing the expanding market influence of NFTs.

Data Source: NFT Market Overview - Footprint Analytics

The market capitalization of the NFT market started at approximately $7.02 billion at the beginning of the month, growing by 5.83%, with an estimated market cap of about $7.43 billion by the end of the month.

Data Source: NFT Market Capitalization and Trading Volume - Footprint Analytics

The buyer-seller ratio in the NFT market increased to 118.6%, with the number of buyers rising to 228,509, a 26.8% increase from December, while the number of sellers reached 192,718, an increase of 9.1%. This change indicates a sustained growth in buyer interest, with the growth rate surpassing that of sellers.

Data Source: Daily Buyers & Sellers in NFTs - Footprint Analytics

The blue-chip index experienced a slight increase in January, rising by 4.4%, with some fluctuations during the month.

Data Source: NFT Blue-Chip Index - Footprint Analytics

In January, Pudgy Penguins maintained its popularity, ranking third in trading volume among the top ten, while its sister project Lil Pudgys ranked eighth.

Data Source: Top Ten NFT Series by Trading Volume in January - Footprint Analytics

Gas Hero is a blockchain interactive strategy game focused on social interaction, officially launched on January 3, and quickly gained widespread attention. The game operates within the Find Satoshi Lab ecosystem and uses the same native token GMT as StepN. The game offers players the opportunity to collect, customize, and enhance hero NFTs, which include various weapons and pets, incentivizing players to collect in-game assets by completing tasks. Notably, the NFTs from this game, especially the Common Heroes and Items series, saw a surge in trading volume in January, ranking among the top ten for the month.

Gas Hero Common Heroes NFT Series

TinFun is a highly anticipated NFT project that has entered the top ten in trading volume since its debut in January 2024. The project aims to preserve Eastern cultural traditions by integrating high-quality artwork with innovative blockchain technology, leading people to explore Eastern aesthetics, stories, and games. The project is led by "BitCloutCat," the founder of LaserCat NFT, with core team members from well-known companies such as Tencent, OKX, and Riot Games. The successful launch of TinFun has raised expectations, hoping it can maintain its momentum through continuous user engagement and enhance the practical value of its NFT collectibles beyond market speculation.

TinFun

Public Chains and NFT Trading Markets

In January, Ethereum led the NFT market with a trading volume of $900 million, holding a market share of 89.1%, but this is the lowest level since 2021. In contrast, trading activity on Polygon significantly increased in January, with trading volume reaching $110 million, a 97.2% increase from the previous month. This significant growth increased Polygon market share to 10.4%, nearly doubling from December's 6.0%.

Data Source: Monthly Trading Volume of Public Chains NFT - Footprint Analytics

The number of unique users on Ethereum continued to grow, reaching 163,000, a 4.9% increase from December, but its share of total users dropped from 49.0% to 42.7%. In contrast, the user base of Polygon surged, increasing from 50.5% to 170,000, while its share rose from 35.5% to 44.5%, successfully capturing the largest user base in January. Meanwhile, the user share of BNB slightly increased from 7.5% to 8.6%.

Data Source: Monthly Unique Users of Public Chains NFT - Footprint Analytics

In the NFT trading market, Blur saw its trading volume increase by 11.7% to $690 million, although its market share slightly declined from 69.2% in December to 68.3%. OpenSea continued to see its market share decline, dropping from 20.8% to 16.6%, with trading volume decreasing by 10.1% to $170 million. In contrast, Mooar emerged as a force to be reckoned with, with trading volume increasing by 112.1% and market share expanding from 5.0% to 9.5%.

Data Source: Monthly Trading Volume Share of NFT Trading Markets - Footprint Analytics

Additionally, OpenSea, Blur and Element attracted the most unique users in January, with user counts of 279,000, 55,000, and 40,000 respectively.

Data Source: Monthly Unique Users of NFT Trading Markets - Footprint Analytics

The popularity of the blockchain game Gas Hero significantly boosted the trading volume of Mooar and Polygon in January, highlighting the game's impact on market dynamics.

In contrast, amidst the changing tides of the NFT market, OpenSea has been striving to justify its previous valuation of $13.3 billion. On January 27, CEO Devin Finzer revealed that OpenSea has attracted acquisition interest, although he did not disclose the timing or potential acquirers. Finzer stated to the media that the company is open to acquisition options. While OpenSea was once the leader in the NFT market, its competitors have shown more rapid growth since the second half of 2023.

NFT Investment and Financing Situation

In January, the NFT investment and financing market remained stable, with a total of 5 rounds of financing amounting to $26.4 million.

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In January 2024, Binance Labs, as Binance's investment arm, made a strategic investment in MEME Coin. MEME Coin is the native token of Memeland, an independent Web3 startup studio founded by the creators of 9GAG. Memeland aims to cultivate SocialFi and the creator economy, leveraging the power of MEME culture to closely connect creators and communities through its MEME Coin and NFTs (The Captainz, The Potatoz, and YOU THE REAL MVP). This investment underscores Binance Labs' commitment to supporting innovative projects aimed at strengthening the connection between digital content creators and their audiences in the ever-evolving Web3 ecosystem.

The above research report data 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