The non-fungible token (NFT) market is undergoing significant changes, marked by a decline in trading volume since the beginning of the year. Recent data from Stocktwits NFT, a cross-chain NFT data source, reveals a growing interest in Cardano. Specifically, the NFT market index on Cardano’s blockchain has surged more than 22% compared to Ethereum’s index over the past 7 days.
Historically, Ethereum dominated the NFT space, but this surge in Cardano’s NFT market index indicates that Cardano could be gaining traction as a preferred NFT trading platform. Despite this positive momentum for Cardano’s NFT prices, Ethereum continues to overshadow its competition in terms of absolute trading volume.
Ethereum still maintains an impressive trading volume of $12.3 million, driven by 11,262 buyers within a 24-hour period. In contrast, Cardano’s trading volume, despite the significant increase in its NFT market index, only reaches $228,778.
However, it’s worth noting that Cardano has attracted attention from 1,579 buyers, showcasing its increasing popularity even when it doesn’t match Ethereum’s trading scale. Beyond Cardano and Ethereum, other platforms are also vying for their own slice of the NFT market. Notably, Solana and Polygon have entered the competition, generating initial revenues of $1.5 million and $2.1 million respectively. These two blockchains have emerged as formidable contenders in the NFT ecosystem.
In terms of price action for ADA and ETH, despite the rapid increase in NFT market indexes, the original tokens of both Ethereum and Cardano don’t seem to reflect the corresponding NFT market trends. Over the past 7 days, Cardano’s native token (ADA) has decreased by 9.64%, bringing its price to $0.26 USD at the time of writing.
Furthermore, ADA’s market capitalization has been notably affected in the past week, dropping from a high of $10.1 billion to the current value of $9.3 billion. ADA’s price decline has persisted over the last 24 hours, with an additional 0.2% drop. Ethereum’s performance has been similar, as the second-largest cryptocurrency by market capitalization witnessed a nearly 10% decrease in the past week.
The price of Ethereum went from $1844 USD last Monday to $1662 USD today, representing a nearly 1% drop within the past 24 hours. This downturn is reflected in Ethereum’s market capitalization, which has decreased by $20 billion during the same period.