NFT Trading Decline Amidst AI DApp Surge
The world of NFT trading has experienced a significant downturn since December, with artificial intelligence dApps emerging as the fastest-growing sector in the web3 space.
Recent data from DappRadar’s Industry Report, released on Mar. 6, reveals a sharp decline in NFT trading volume. The volume dropped by 63% over two months, from $1.36 billion in December to $498 million in February. February also saw a 16% decrease in sales, indicating a weakening market.
Despite the overall decline, there are still active NFT collections making waves. Pudgy Penguins, for instance, saw a 25% increase in sales despite price reductions. Another notable collection, Doodles, garnered attention with the announcement of its upcoming Solana-based DOOD cryptocurrency.
On the other hand, AI-powered NFT collections like Kaito Genesis have been gaining momentum. The floor price of Kaito Genesis reached 7.65 Ethereum (ETH) following a partnership with Azuki.
According to the report, AI dApps have emerged as the fastest-growing category in the web3 ecosystem. Platforms like LOL saw a 40% increase in unique active wallets, while Evermoon experienced a staggering 988% growth. AI-generated content is also thriving, with Fractal Visions witnessing a 721% spike in adoption.
Decentralized Finance Landscape
Similar to the NFT market, the decentralized finance (DeFi) sector has also faced challenges, as evidenced by a decline in total value locked (TVL). The TVL dropped from $217 billion to $168 billion between January and February, with liquid staking activity contributing to Ethereum’s 27% decrease in TVL to $97 billion.
Solana (SOL) witnessed the largest decline, with its TVL shrinking by 33% to $15.4 billion. This decrease was primarily driven by reduced activity on exchanges like Raydium (RAY) and Jupiter (JUP).
Despite the overall downturn, Berachain (BERA) managed to maintain a TVL of $5.05 billion. Additionally, Aptos (APT) saw a 6% growth in TVL, reaching $1.83 billion, making it one of the few chains to register positive growth during this period.
As the web3 landscape continues to evolve, the interplay between NFT trading, AI dApps, and DeFi will shape the future of blockchain technology and digital assets. Stay tuned for more updates on these dynamic sectors.