March 2024, stella@footprint.network

Data Source: NFT Research - Footprint Analytics

February 2024 unveiled complexities within the crypto and NFT markets, with the NFT sector recording a $1.2 billion trading volume, down 3.7% from January. Notably, prominent NFT collections across platforms like Ethereum, Polygon, BNB Chain, Cronos, Optimism, and Sui—such as Azuki, MAYC, and BAYC—experienced a substantial 32.1% reduction in trading volume. This decline was notably influenced by the decreased performance of Gas Hero NFTs, affecting Polygon and Mooar. Concurrently, the period saw the introduction of new narratives like ERC404 and DN404.

This report is based on data sourced from Footprint Analytics' NFT research page, a comprehensive and user-friendly dashboard. It provides up-to-date statistics and metrics essential for grasping the pulse of the NFT industry, covering trades, projects, funding, and more.

Crypto Macro Overview

In February 2024, Bitcoin and Ether both showcased impressive growth, with Bitcoin surging 46.5% to close at $62,404, crossing $60,000 for the first time since Q4 2021 and nearing its all-time high by just 9%. Ether slightly outpaced Bitcoin, climbing 48.1% to end the month at $3,383.

Source: BTC Price & ETH Price - Footprint Analytics

February's significant uptick in the cryptocurrency market was influenced by multiple factors. The introduction of new spot Bitcoin ETFs in the U.S. attracted massive inflows, totaling $6 billion in February alone, signaling span investor confidence and a shift toward cryptocurrency as a viable store of value. Additionally, anticipation of Ethereum's network upgrade in March and Bitcoin's halving event in April contributed to the price gains. 

However, broader market dynamics, such as inflation concerns and Federal Reserve policies, could pose challenges to continued growth. The uptick in inflation in February signals a risk that anticipated interest rate cuts in the U.S. may be delayed until later this year or beyond.

NFT Market Overview

In February, amidst significant growth in the broader cryptocurrency sector, the NFT market saw a change in pace. Trading volume in the NFT market reached $1.2 billion, down 3.7% from January. 

Examining Ethereum, Polygon, BNB Chain, Cronos, Optimism, and Sui reveals a downturn in trading volume to $838.9 million, a 16.1% decline from January, accompanied by a 25.8% decrease in transactions and a 14.6% fall in unique user(wallet) numbers. This reduction is partially due to February's fewer days. Additionally, fluctuating interest in key collections mirrors changing market dynamics and shifts in investor sentiment.

In February, the top 10 NFT collections among the six blockchains saw a 32.1% decrease in total trading volume from January's $570.18 million to $387.16 million, accounting for 46.2% of February's total market volume, down from 56.2% in January. 

Source: Top 10 Collection Volume - Footprint Analytics

Azuki, leading the January list, faced a sharp 73.65% drop in volume to $32.6 million, significantly retreating from its previous market dominance. Mutant Ape Yacht Club (MAYC) and Bored Ape Yacht Club (BAYC) also experienced declines of 42.0% and 18.2%, respectively.

Despite a 32.8% reduction in trading volume to $64.08 million, Pudgy Penguins emerged as February's top collection, with its floor price increasing by 15.0% and nearing BAYC's floor price at one point. Meanwhile, Walmart has expanded its partnership, bringing Pudgy Toys to 1,100 additional US stores for a total of 3,100. This move not only amplifies Pudgy Penguins' market presence but also marks a significant step in mainstreaming Web3 intellectual property, enhancing its market share.

The eighth spot went to Moonbirds, which saw a trading volume of $27.8 million. Yuga Labs' acquisition of PROOF on February 16, including Moonbirds and other assets, spurred a surge in its floor price and trading volume.

The Nobody NFT collection, a collaboration between Nobody and famed director Stephen Chow, debuted with a $36.6 million trading volume, ranking fifth. Launched on the Moonbox platform which aims to introduce AI-powered NFTs in the arts and film sector, Nobody NFTs mark Chow's entry into the NFT space. 

Nobody NFT Collection

Chains & Marketplaces for NFTs

In February, Ethereum maintained its lead in the NFT market, recording a trading volume of $814.3 million and capturing 97.1% of all transactions, slightly adjusting its market share upwards despite a lower volume than January. On the other hand, Polygon experienced a notable decline, with its trading volume dropping to $20.4 million from January's $106.0 million, causing its market share to sharply decrease from 10.4% to 2.4%.

Source: Monthly Volume by Chain - Footprint Analytics

Ethereum's unique user count(wallets) declined to 149.9K from January's 163.3K, yet its market share actually grew from 42.7% to 46.9%. Polygon also saw a reduction, with its user base falling to 129.2K, bringing its market share to 40.4%. Meanwhile, BNB Chain's market share modestly increased, reaching 9.7% with 30.9K users. 

Source: Monthly Unique Users by Chain - Footprint Analytics

In February, Gas Hero, a Web3 game developed by Find Satoshi Lab, saw its NFTs trading volume plummet by 87.2% to $12.3 million, following a successful January launch with $96.1 million in trading volume. This decline significantly contributed to the reduced trading activity on Polygon and Mooar. On February 28, the Gas Hero team announced a strategic pivot back to Closed Beta Testing, aiming to address economic balance and user experience issues. 

Source: Gas Hero NFT Collection Daily Trading Volume - Footprint Analytics

In February, Blur remained a dominant force in the NFT marketplace, despite a trading volume decrease to $613.2 million, managing to enhance its market share to 73.1% from January's 68.3%. OpenSea, however, witnessed a marginal uptick in trading volume to $171.7 million but saw its market share increase to 20.5%, reversing its previous trend of decline. Mooar, on the other hand, experienced a significant downturn, with its trading volume plummeting to $12.3 million, drastically reducing its market share to 1.5% after a previous surge. 

Source: Monthly Volume Distribution by Marketplace - Footprint Analytics

OpenSea led the NFT market with 224.4K unique users(wallets), despite a decline from January's 278.9K. Blur, however, saw an increase to 60.5K users, while Element slightly dropped to 35.9K.

Source: Monthly Unique Users by Marketplace - Footprint Analytics

NFT Investment & Funding   

Public records reveal three funding rounds in the NFT market, highlighting a period of subdued investment activity. Despite this overall slow pace, Animoca Brands stood out for its active participation in the sector.

• Binance Labs declared its investment in the S6 Incubation project, NFPrompt, taking a leading role in this investment round.

• WELL3, developed by YogaPez, successfully raised over $5 million via seed funding rounds and NFT sales led by Animoca Brands, Newman Group and Soul Capital Partners.

• Imaginary Ones, a collection of animated 3D character NFTs, recently concluded its latest funding round, attracting investments from Cypher Capital Group, Animoca Brands, and MH Ventures.

What’s New?

• Pudgy Penguins Toys expand to 1,100 more Walmart stores.

• Yuga Labs acquires PROOF and Moonbirds.

• Pandora popularized the concept of ERC-404 and its token rocketed 12,000% in one week.

• Magic Eden's Ethereum marketplace with Yuga Labs went live on February 27.

• Solana NFTs surpass $5 Billion in trading volume.

• NodeMonkes Leads Bitcoin Ordinals to new heights as Bitcoin’s price nears an all-time high.

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Data includes: 

• Blockchains: Ethereum, Polygon, BNB Chain, Cronos, Optimism, Sui

• Marketplaces: OpenSea, LooksRare, Blur, X2Y2, Cryptopunks, Rarible, SuperRare, Foundation, Decentraland, Aavegotchi, Element, Era7, the Sandbox, Minted, Clutchy, BlueMove, Hyperspace, Tocen, Keepsake, Mooar.