The drop in the prices of cryptocurrencies did not necessarily affect the performance of NFTs as they have shown a rise in prices while the crypto market was in red, according to DappRaddar.
Like looking at the market of cryptos in the third quarter of 2021, the crypto market was looking to recover the losses of second quarter while the market of NFTs was booming. In quarter four, when the crypto market was on a roller-coaster, NFTs market was even showing an upward trend.
This year, the top cryptocurrency in the market so far has shown a rough behavior in respect of its prices but on the other hand NFTs has shown a strong beginning partly attributed to the launch of LooksRare NFT marketplace which is considered to be a rival to a big NFT marketplace OpenSea.
According to DappRaddar, both the amount of trades and the amount of Unique Trade Wallets connected to NFT have been increasing at a constant pace.
The report also says that with the investors increased interest in the upcoming metaverse is also favorable to NFTs and this is what I had shared before how metaverse can boom the market of NFTs. And we have seen Meta (formerly known as Facebook) and KuCoin which is a cryptocurrency exchange have dedicated a big budget for the development of metaverse.
I had already wrote about how metaverse could possibly be booming the NFTs market like for example if someone have bought a digital plot, house or a museum for himself and then he would be thinking of buying some NFT art for it.
And this is one example, we may have other NFT uses as well in the metaverse.
Not a Financial Advice.