According to DappRadar, the total market value of NFT collectibles deployed on Ethereum will drop by 59.6% in 2022.
The report shows that the total market capitalization of ETH-based NFT projects will start at $9.3 billion in 2022 and end at $3.7 billion. However, data from January shows that the NFT market is starting to grow, including ETH-based NFTs.
ETH has a collection of 81 NFTs deployed on-chain. The numbers show that Yuga Labs NFTs account for 67% of the total market capitalization of NFTs on the ETH chain.
Yuga Labs includes popular NFT collections such as CryptoPunks, Bored Ape Yacht Club (BAYC), Bored Ape Kennel Clum (BAKC), Mutant Ape Yacht Club (MAYC), Meebits, and Otherdeeds from Otherside.
CryptoPunks and BAYC account for 46.7% of the total ETH NFT market capitalization. The base price of BAYC is US$98,438, and the transaction volume in January is US$49 million
According to another report from DappRadar, the volume of NFT transactions in January increased by 38% from about $700 million in December 2022. The current trading volume is $946 million, an all-time high since June 2022. NFT sales also increased by 42%, from 6.7 million in December to 9.2 million in January.
Top NFT blockchains. Source: Glassnode
ETH also ranks first for the highest NFT transaction volume. Transaction volume at the chain rose 37%, from $480 million in December 2022 to $659 million in January.
Solana and Polygon followed ETH in second and third with $85 million and $46 million, respectively. While SOL was up 23 percent from December’s $69 million, MATIC came in third with a 124 percent month-on-month growth.
Avalanche and Tezos recorded the first and second largest monthly growth rates of 451% and 150%, respectively. On the other hand, the Immutable X and WAX blockchains recorded declines of -3% and -32%, respectively, in January.
DeFi in January
Another area to watch in the cryptocurrency space is total value locked (TVL) in DeFi, which grew 26.82% to $74.6 billion in January, according to a DappRadar report.
“DeFi market showing signs of recovery in January 2023.”
DeFi TVL. Source: DappRadar
Currently, DeFi TVL is at an all-time high over the past four months. Data show that DeFi TVL fell to a low of around $50 billion in November, the lowest level since the previous four months.
Lido Finance became the most famous DeFi protocol in January, and its TVL increased by 36.77% in the month to $8 billion.
In terms of TVL, the Ethereum blockchain leads the way with $48.6 billion, a 29% increase from $37.6 billion in December 2022.
TVL is based on blockchain. Source: Glassnode
BNB Chain and Tron ranked second and third with TVL of $7.1 billion and $5.3 billion, respectively. TVL for both chains increased by 18% in December 2022.
Despite ranking seventh, Optimism stood out, recording the most significant monthly growth of 57% from $589 million in December to $821 million in January. Cronos and Solana followed as the second and third growth chains with TVLs of 53% and 51%, respectively.
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