While non-fungible tokens (NFTs) plummeted in popularity last year due to waning investor sentiment, the asset class has been gaining renewed user interest since the start of the year.
The NFT market has seen strong activity in recent weeks as the broader crypto market gradually recovers from the crypto winter of 2022. New data suggests that Ethereum-based NFTs have witnessed a massive increase in activity in recent weeks.
Ethereum NFT Projects Record Increased User Activities
According to data provided by Nansen Data Journalist Martin Lee, Ethereum-based NFT projects have seen their weekly transactions increase for five consecutive weeks.
According to the information, the overall upward trend in this weekly number of transactions began on November 4, 2022, with recent transaction volumes reaching highs of over 700,000 weekly.
Leading NFT marketplace OpenSea accounted for a significant portion of these transactions, closely followed by Mints, LooksRare, and X2Y2.
In addition to the high volume of transactions, the past few weeks have seen a steady increase in Ethereum NFT users.
According to the data, the number of NFT users on Ethereum has increased for three consecutive weeks. There are almost 250,000 NFT users on the network, and OpenSea also accounts for most of this number.
NFT wash trading remains a concern
NFTs have been one of the most prominent parts of Web3 for the past three years. The NFT market experienced explosive growth during the 2021 bull run, but this growth was not steady and leveled off in 2022.
However, the market is quickly gaining momentum, with renewed investor sentiment thanks to some popular projects.
With the growing popularity of digital collectibles, the NFT market sector has become increasingly competitive as new platforms are constantly being launched. The influx of new NFT markets has opened the door to wash trading.
according to a recent reportalmost 60% of all NFT trading volumes on Ethereum in 2022 were laundering, and several markets engaged in laundering.
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This post ETH NFT activity increased for only 5 weeks in a row: data
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