NFT Tokens Soar in 2023 as Whales Increase Accumulation

The cumulative NFT transaction volume in January tends to rise. In addition, Delphi Digital’s recent report data shows that the monthly transaction volume has reached an 8-month high of more than US$1 billion.

The main factor affecting NFT trading was the Blur token airdrop on February 14th. Since its launch in Q3 2022, Blur has been rewarding users with “Care Packs”, which can be redeemed for tokens from 00:00 (UTC) on February 15th.

Many users try to make money from these airdrops, which increases the trading volume of the platform. Since the beginning of 2023, Blur’s trading volume has surpassed that of OpenSea, the market leader in NFT trading.

NFT Market Share by Volume in 7 Days | Source: dune

Airdrops often create excitement in the market as users are delighted to receive free tokens and FOMO from those who missed out. The next step for the Blur team is likely to be to launch a new yield mining campaign, similar to Optimism, to maintain volume and users. Additionally, users turn to other opportunities in the space, similar to Blur.

On-chain data shows whales are accumulating token non-homogeneous token

The top NFT exchanges on Ethereum using native tokens are LooksRare (LOOKS) and X2Y2 (X2Y2). Year-to-date, these tokens are up 100% and 260%, respectively, outperforming the market average, indicating that buyers are paying more attention to them.

Independent on-chain analyst The Data Nerd Discover Taureon Capital is accumulating tokens for the NFT market. The Ethereum wallet, which Nansen identified as “smart money”, has also significantly increased its holdings of X2Y2 and LOOKS. This shows that sophisticated investors are more interested in tokens in the NFT market.

non-homogeneous token

“Smart Money” wallet count and balance X2Y2 | Source: Nansen


X2Y2 ranks third in NFT trading volume on Ethereum. The platform launched the token in February 2022 and has been in steady use since then. With this token, the platform distributes transaction fees to X2Y2 stakeholders and incentivizes transactions through X2Y2 incentives.

X2Y2 has a price-to-earnings (PE) ratio of around 14, which is in the lower range compared to other DeFi tokens with a PE between 10 and 250.

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Most recently, 37.5 million X2Y2 tokens, or 17% of the circulating supply, were unlocked for the development team and vaults in early February. The team assures investors that:

“For the foreseeable future, the X2Y2 team will not be selling any tokens that are about to be unlocked or any tokens that have been unlocked to date.”

non-homogeneous token

X2Y2 Token Launch Schedule | Source: X2Y2 Documentation

However, the token is at risk due to inflation, causing the circulating supply to nearly double by the end of the year. The team also set up a monthly destruction mechanism to prevent dilution.

X2Y2 is trading near the top of the 2022 range at around $0.156. If the buyers can break out and consolidate above $0.20, they may take profits.

looks rare

LooksRare, another OpenSea competitor, offers stakeholders transaction fees for the platform in the form of ETH and Wrapped Ether (wETH). The market competition price-earnings ratio is 11.7, which is lower than X2Y2.

On-chain analysis platform Lookonchain disclosure Popular trader and BitMEX founder Arthur Hayes owns 3.62% of the total token supply. The confidence of whale investors like Hayes has pushed retail and other funds to follow in their footsteps.

Like X2Y2, LOOKS tokens will be unlocked in large numbers at the end of 2022, but no major unlock will occur until Q2 2023.

non-homogeneous token

LOOKS Token Launch Schedule | Source: Coinecko

LOOKS price action suggests that the market has absorbed the recent dilution. Based on trading levels in 2022, the coin has significant upside potential to reach $0.35 and $0.50. However, the platform must show an increase in usage to support further rallies.


Rarible’s native token differs from LooksRare and X2Y2 in that it does not share in the platform’s trading profits. RARI is only used as a governance token for voting on proposals within the Rari Foundation.

The team adopted Curve’s vote-bond-style tokenomics and has yet to see any real staking tracking. Also, RARI is used to transact on the platform, but its use as a payment token is limited compared to ETH and stablecoins.

The underperformance of the price reflects the poor performance of the token economy. Unless the Rari Foundation takes steps to increase the token’s utility, RARI’s performance is likely to remain weak relative to the rest of the market.

There may also be some potential opportunities in DeFi-NFT platforms such as JPEG and Pine, which allow borrowing and using NFTs as collateral.

Total NFT trading volume is less than 1% of exchange trading volume.However, it is a growing segment forecast It will generate nearly $5.9 billion in revenue by 2025. Thus, an early investment that shares some of the gains in a decentralized market could reap attractive returns within a few years.

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Ming Ying

As reported by Cointelegraph

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