NFT Trading Volumes Decrease by 63% While AI Becomes the Top Sector
NFT trading volume has fallen sharply by 63% from December, while decentralized artificial intelligence applications (dApps) are seeing a rise, positioning themselves as the most rapidly expanding area within the web3 space.
The most recent sector analysis from DappRadar, published on March 6th, points out a significant 63% drop in NFT trading volume in two months. In particular, volume declined from $1.36 billion in December to $997 million in January, and even more to $498 million in February. Sales in February specifically also decreased by 16%, indicating the slow market situation.
Despite the general decline, certain NFT collections are demonstrating robustness. As an illustration, Pudgy Penguins experienced a 25% increase in trading volume even with price reductions. Doodles also became a popular subject after the declaration of their forthcoming Solana-based DOOD digital currency.
In the meantime, NFT collections powered by AI, such as Kaito Genesis, are gaining interest. After a partnership TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America Azuki, the minimum price of Kaito Genesis rose to 7.65 ETH.
The analysis points out AI dApps as the most rapidly expanding group in web3. February experienced a notable increase in distinct active wallets, with platforms such as LOL drawing in 5.1 million users (up 40%) and Evermoon increasing by a remarkable 988%. Content created by AI is also increasing, with Fractal Visions usage increasing dramatically by 721%.
Like NFTs, the DeFi sector is also experiencing stress, indicated by the decreasing TVL. TVL decreased from $217 billion in January to $168 billion in February. Reduced liquid staking activity resulted in a 27% decline in the TVL of Ethereum, reaching $97 billion.
Solana (SOL) experienced the largest decrease, with its TVL decreasing by 33% to $15.4 billion. This is largely due to reduced activity on Raydium (RAY) and Jupiter (JUP) DEXs.
Conversely, even with the market decline, Berachain (BERA) nonetheless achieved a TVL of $5.05 billion. Aptos (APT) was also notable as one of the limited chains demonstrating expansion, with its TVL rising by 6% to $1.83 billion.
