NFT market dynamics in December: Strong growth shapes year-end trends

Transaction volume in the NFT space surged in December, and the number of unique users also increased.

Written by: stella@footprint.network

December saw a significant upward trend in the cryptocurrency and NFT space, with sharp increases in the prices of Bitcoin and Ethereum signaling a recovery in the market. At the same time, the transaction volume in the NFT field has soared, and the number of independent users (wallets) has also increased, which shows that the NFT industry is continuing to grow and mature.

This report is based on data provided by Footprint Analytics' NFT research page. This page is a comprehensive and easy-to-use dashboard that provides the latest statistics and indicators necessary to understand the pulse of the NFT industry, including transactions, projects, financings, and more.

Key points overview

1 Crypto Market Overview

• Bitcoin’s performance in December was very impressive. The price at the beginning of the month was US$37,729 and closed at US$42,171 at the end of the month, an increase of 11.8%.
• Optimism in global stock markets and expected interest rate cuts from the Federal Reserve have had a positive impact on the cryptocurrency industry, boosting investor confidence.

2 NFT Market Overview

• In December, the NFT market transaction volume increased significantly by 32.3%, reaching US$850 million.
• The market capitalization of the NFT market started at $5.24 billion and ended up growing 6.5% to $5.58 billion.
• The blue-chip index also rose, rising 4.6%.

3 Overview of public chain and NFT transactions

• In December, different public chains showed a diversified trend in user participation.
• NFT market trading volume in 2023 was $13.12 billion, down from the previous year’s high. Ethereum’s market share fell slightly to 97.8%, down from 99.8% in 2022, indicating that the market is gradually diversifying.
• In 2023, the annual trading volume performance of the NFT trading market showed significant changes compared with the previous year. Blur achieved a staggering annual transaction volume of $7.26 billion, far exceeding the $650 million in 2022.

4 NFT investment and financing situation

• Compared with November, investment and financing activities in the NFT field were more active this month, with a total of five rounds of financing and a total of US$160 million raised.
• LINE NEXT received a US$140 million investment led by Crescendo Equity Partners.

5 Key news this month

• The NFT of Ubisoft's "Champions Tactics: Grimoria Chronicles" game was released before the game. *ForbesWeb3 Community Center ForbesWeb3 has created a wallet specifically for long-term collection of NFTs.
• Animoca Brands’ NFT series Mocaverse completed nearly $11.89 million in financing.
• Magic Eden integrates its NFT market into the blockchain game Honeyland.

Crypto Market Overview

Bitcoin's performance in December was very impressive. The price at the beginning of the month was US$37,729 and closed at US$42,171 at the end of the month, an increase of 11.8%. Ethereum also showed a similar upward trend, starting from $2,052 and finally closing at $2,293, an increase of 11.7%.

Data source: BTC Price & ETH Price

At the same time, global stock markets generally show optimism, which is particularly evident in countries such as the United States, India, Japan, France and Germany. This optimism, along with expected interest rate cuts from the Federal Reserve, has boosted investor confidence and had a positive impact on the cryptocurrency industry. Additionally, the United States is expected to soon approve a spot Bitcoin ETF, while Hong Kong is also ready to accept applications for a spot cryptocurrency ETF. These factors further boosted bullish sentiment in the market. The synergies between traditional financial markets and the crypto ecosystem are increasingly evident.

NFT Market Overview

In December, the transaction volume of the NFT market increased significantly by 32.3%, reaching US$850 million, the number of transactions increased by 29.4% to 1,384,729, and the number of independent user wallets also increased by 21.4% to 297,432.

Data source: NFT Market Overview

The market capitalization of the NFT market started at $5.24 billion and eventually grew 6.5% to $5.58 billion.

Data source: NFT Market Cap & Volume

The ratio of buyers to sellers was 102.1%, an increase of 1.45% from November. Specifically, there were 180,232 buyers (up 22.7%) and 176,607 sellers (up 21.0%).

Data source: Daily Buyers & Sellers

The blue-chip index also rose, rising 4.6%.

Data source: BlueChip Index

Pudgy Penguins and Mocaverse saw significant growth this month, according to Footprint Analytics. The floor price of Pudgy Penguins increased by 64.4%, from 6.46 ETH to 10.62 ETH, while the floor price of Mocaverse increased by 51.6%, from 2.23 ETH to 3.38 ETH. Additionally, Animoca Brands raised an additional $11.88 million for Mocaverse this month, following a $20 million investment in September 2023.

Data source: Market Cap Distribution in December

Public chain and NFT trading market

In December, Ethereum continued to maintain its market leadership, with transaction volume reaching $840 million, accounting for 98.1%. The transaction volume increased significantly by 31.8% compared with November.

Data source: Monthly Volume by Chain

Different public chains show diversified trends in user participation. Ethereum continues its upward trend, with 156,000 unique users, an increase of 10.9% from November. The number of Polygon users increased by 19.2% to 110,000, reversing the previous downward trend. BNB Chain also rebounded, with the number of users reaching 24,000, an increase of 41.8%, but still lower than the peak in July. Sui's user base has doubled to 18,000.

Data source: Monthly Unique User by Chain

Looking at macro trends, the NFT market trading volume in 2023 was US$13.12 billion, down from the previous year's high. Ethereum’s market share fell slightly to 97.8%, down from 99.8% in 2022, indicating that the market is gradually diversifying.

Data source: Yearly Volume by Chain

In 2023, Polygon led the way in terms of number of unique users, growing a staggering 231.0% to reach 1.28 million users. However, the number of Ethereum users fell by 45.2% to 1.19 million users, reflecting changes in user preferences between different public chains. BNB Chain's user base has expanded to 350,000, an increase of 280.7% compared to 2022.

Data source: Yearly Unique User by Chain

In the NFT trading market dynamics in December, we can see some major changes. Blur's trading volume increased 45.4% to $620 million, while OpenSea's trading volume rose 25.2% to $190 million. However, X2Y2's trading volume fell by 32.0%.

Data source: Monthly Volume by Marketplace - Distribution

In addition, OpenSea's unique users increased by 14.0% in December to 232,702, further solidifying its market leadership. Unique users of Blur and Element also increased by 19.0% and 18.6% respectively.

Data source: Monthly Unique Users by Marketplace

In 2023, the annual trading volume performance of the NFT trading market showed significant changes compared with the previous year. Blur achieved a staggering annual transaction volume of $7.26 billion, far exceeding the $650 million in 2022. Although OpenSea's trading volume fell from $20.91 billion to $3.31 billion, it still has some influence in the market.

Data source: Yearly Volume by Marketplace

Meanwhile, Blur's user base grew 189.8% to 291,579 people, marking its rapid rise in the NFT market.

Data source: Yearly Unique Users by Marketplace

NFT investment and financing situation

Compared with November, investment and financing activities in the NFT field were more active this month, with a total of five rounds of financing and a total of US$160 million raised.

NFT project financing status in December 2023

Among them, LINE NEXT, as a subsidiary of LINE that focuses on NFT development, received a US$140 million investment led by Crescendo Equity Partners. This is the largest financing in Asia's Web3 field in 2023. This round of financing will support LINE NEXT’s launch of its global NFT platform DOSI in January 2024.

Origin: DOSI Citizen

As we bid farewell to 2023, the steady momentum and continuous changes in the NFT market indicate that 2024 will be an epoch-making year. NFTs are rapidly transcending their role as traditional digital collectibles to become a medium that represents users’ personalities, perfectly combines digital and reality, and facilitates user co-creation. This shift marks a clear progression toward wider mainstream adoption. As the diversity of user participation continues to expand, the emergence of more platforms is building a multi-dimensional and rich NFT ecosystem, laying a solid foundation for continued innovation and growth in the future.

The above research report data includes:

Public chains: Ethereum, Polygon, BNB Chain, Cronos, Optimism, Sui

交易市场: OpenSea, LooksRare, Blur, X2Y2, Cryptopunks, Rarible, SuperRare, Foundation, Decentraland, Aavegotchi, Element, Era7, the Sandbox, Minted, Clutchy, BlueMove, Hyperspace, Tocen, and Keepsake

Data source: NFT Research