As wash trade and farm trade tokens emerge amid declining trading volumes, the NFT market landscape will become increasingly complex.
According to a technical data analysis report by DappRadar, Bored Ape Yacht Club (BAYC) has seen a staggering 1,095% growth in trading volume in 7 days, reaching $21.9 million.
Meanwhile, a dataset on NFT markets shows that wash trade and farm trade in tokens have begun to emerge amid a drop in overall trading volume.
However, the spike in BAYC’s trading volume suggests that wash trading has contributed significantly to the project’s metric increase.
According to DappRadar, wash trading occurs only when traders create artificial volume by trading assets with each other. This practice has become more common as the Blur market token reduction methods in season 2 are approaching.
As a result, NFT market makers are strategically leveraging the Points collection mechanism to maximize future profits.
In the case of BAYC, only about 30 Bored Apes were involved in these wash transactions. However, a significant portion of these sales are due to whale wallets, indicating potential trading activity between their accounts, although this will require further verification.
Additionally, as Blur’s NFT peer-to-peer lending protocol emerges, Bored Apes’ collateral eligibility further increases their appeal, hitting the intersection between point farming and assets Mortgage.
The NFT market is currently experiencing a contraction in 2023, with daily trading volumes down significantly from the previous high. Transaction volume fell across the board while Blur took the majority market share from OpenSea. Many argue that it is the fact that NFT royalties become less, which has caused creators to look for new income strategies.
Although blue-chip NFT projects have shown resilience in the context of a bear market, they are also facing a floor price decline. Additionally, Ethereum’s current dominance in the NFT market is being challenged by network congestion and fees, which could lead users to turn to alternatives like Polygon.
Now, according to Footprint Analytics’ monthly NFT report, the NFT market has seen a 50% drop in trading volume and a seller oversupply at the end of the month.
Despite some growth in the number of NFT projects, the reduction in funding shows investors’ caution towards putting money into their fields.
As wash trade and farm trade tokens emerge amid declining trading volumes, the NFT market landscape becomes increasingly complex.
This burgeoning market requires investors and traders to stay fully informed about the latest developments and trends in order to navigate the market effectively.