The NFT sector appears to be declining as sentiment around the broader cryptocurrency market recovers.
The emergence of new players and changing dynamics has led to a rapid development in the non-fungible token space. Despite a hectic start, NFTs had a strong performance in the first quarter of 2023.
NFT Market Summary: Q1 2023 According to a report by DappRadar, the NFT market has had a great start to the year. In fact, Q1 2023 turned out to be the best quarter since Q2 2022. While NFT trading volume recorded a slight decline of 15.65% in March as a result of turbulent market conditions, the overall performance remained bullish. Let's take a closer look at the key points from the performance of the NFT market in the first quarter.
Trading volume for the entire first quarter increased by 137% to a total value of $ 4.7 billion. The number in February was bolstered by the Blur token farming period while the number of NFT sales for the following month-only fell by 4.63% in March, with 2.7 million NFTs sold.
Zooming out, NFT sales were 19.4 million in Q1 2023 which is an 8.56% increase over Q4 2022.
In terms of blockchain, Ethereum remains the dominant player in the NFT market by volume, accounting for nearly 90% of the market share in March. Quarterly trading volume increased by more than 245% to $4.1 billion in the first quarter of 2023, compared to the fourth quarter of 2022.
Coming in second place is Solana, with a trading volume of $242 million. Since the previous quarter, the first layer blockchain has seen an increase of 4.55%.
Polygon had a great start to the year as well, with turnover exceeding $29 million in March despite a 24.20% drop from the previous month. Furthermore, when measured by quarterly data, Tier 2 Expansion Solutions had a turnover of $85 million in Q1 2023 which means an increase of 125.04% over the previous quarter, making it one of the best three-month periods recorded since Q4 2023. 2021.
Blur Market vs OpenSea OpenSea has long held its position as the dominant NFT market. However, the emergence of Blur sparked an open battle against the undisputed market leader. The report revealed that Blur dominated the NFT market in the first quarter of the year recording a trading volume of $2.7 billion, a staggering increase of 783.89% from the fourth quarter of 2022, and a market dominance of over 57%.
Blur was affected by a drop in trading volume of 6.56% to $1.2 billion. However, the platform controlled more than 70% of the market.
After facing stiff competition from Blue, OpenSea's market share reached the smallest figure since February 2021 at just 22% in March. Regarding the first quarter of 2023, the market registered an increase of 68.41% with a trading volume of $1.4 billion. Its quarterly market dominance was 31.10%.
