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 with 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.
