Bitcoin Surge Ignites Remarkable Rebound in NFT Sales for December 2023

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  • The NFT sales in 2023 have shown a positive trajectory similar to its sister entity, cryptocurrency.
  • At least 111,713 buyer addresses participated in NFT transactions on the Bitcoin Chain in December.
  • The most valuable NFT sale in December was a digital copy of Vincent Van Gogh’s 1888 self-portrait (Van Gogh painting #216).

The web3 industry has rapidly grown over the past few years, extending from the financial sector to creating decentralized applications available to all sectors. Today, the Web3 industry is divided into four major categories: cryptocurrency and digital assets, NFT marketplace, the Metaverse, and Artificial intelligence.

Unfortunately, in 2022, the industry experienced the largest crypto crashes since MT Gox. The adverse after-effects rippled across the industry, affecting other sectors. However, the NFT marketplace suffered tremendously since many platforms often rely on cryptocurrency or digital assets like stablecoins to purchase NFT-based products.

For a good portion of 2023, many within the industry foretold the end of the NFT franchise. At the time, this grim premonition seemed all but treu with NFT marketplaces exhibiting massive losses. As a result, many abandoned their reliance on NFT as a source of income, claiming that the downfall of crypto and the surge of AI NFTs spelt doom for the franchise.

In a recent ray of hope, the ties between the NFT marketplace and the crypto industry have significantly propelled the franchise. In December 2023, the Bitcoin surge caused an unprecedented surge in NFT sales, prompting many to dive back into the craft.

The plummeting of NFT Sales

The NFT marketplace is one of the main highlights of the web3 industry. It represents one of the greatest feats of the franchise: digital ownership. Through these concepts, developers have extended the industry’s reach beyond its sector. Today, the gaming industry, the Media franchise, and even governmental bodies utilize the vast applications of digital ownership. Unfortunately, the NFT marketplace has experienced a downward trend.

The adverse effects of the 2022 crypto crash rippled across the sister entities, and NFT suffered one of the hardest hits. Most NFT marketplaces rely on cryptocurrency as their main currency. A report by dappGamble compiled a series of after-effects the NFT franchise faced and would continue to face, given the rapid decline of cryptocurrency.

Also, Read What’s Next for NFTs?

The report indicated that as altcoins dropped to zero, it adversely affected the market capitalization. This drop in value eventually transformed into the NT marketplace, causing many NFT collections to be worthless. The report stated, “This statistic effectively means that 95% of people holding NFT collections are currently holding onto worthless investments. Having look

NFT-Sales
NFT Sales 2023 experienced a significant downtrend after the Crypto winter.[Photo/Medium]
ed into those figures, we would estimate that 95% include over 23 million people whose investments are now worthless.”

In addition, since the explosion of new projects and offerings, most marketplaces faced an increasing oversaturation rate. During the peak age of NFT, most high-profile sales and celebrity endorsements created a sense of FOMO in the market. According to researchers, unique buyers and collectors within the marketplace have increased by 10,100%.

This fact is attributed to the ratio of NFT sales to the number of collections. For instance, in 2020, global NFT sales were at $18 million, experiencing a profit margin of $400,000, while in 2023, NFT sales reached an all-time high of $5 billion but experienced a loss of $275 million. In addition, the 2023 crypto winter only worsen the situation, with many colours opting out of the market, leaving behind plenty of worthless NFT projects.

Fortunately, in a similar fashion, the Bitcoin surge has shone a ray of hope for the NFT marketplace.

Bitcoin Surge Positively Affects NFT Sales 2023

As intertwined entities, the NFT sales in 2023 have shown a positive trajectory similar to its sister entity, cryptocurrency. According to the Cryptoslam portal, NFT Sales 2023 experienced an unprecedented spike alongside the Bitcoin surge experiences.

According to the platform, 111,713 buyer addresses participated in NFT transactions on the Bitcoin Chain in December. This caused a chain reaction, increasing the number of merchants’ addresses to 98,744, the highest figure witnessed during the month.

Details of the NFT sales 2023, according to Cryptoslam, are as follows: the total Ethereum NFT sales amount to $364.79 million, while BTC-focused NFT Sales stood at $881.22 million.

The most valuable NFT sale in December was a digital copy of Vincent Van Gogh’s 1888 self-portrait (Van Gogh painting #216). The NFT artwork sold for a whopping $1.19 million. Ethereum also presented one of the highest NFT Sales in 2023 with its most valuable artwork, Frxethredemption Ticket #33 token, for $638,433.

Also, Read Pudgy Penguin’s Playful Pivot: NFT Toys to VR Wonderland.

The 2024 crypto market has protected a significant Bitcoin surge, estimating the value to reach nearly $160,000. Various events like the Bitcoin Spot EFT approval, the Bitcoin halving, and the recently released Bitcoin Depository Receipts are estimated to sway on the anticipated bull run.

These events will set the entire crypto ecosystem on a whole scale, possibly propelling its valuation to $2 trillion. The report said three major events significantly propelled NFT sales in 2023. First, Sotheby conducted its first-ever BTC NFT sales.

The premier auction house published a pixel art Biciin NFT collection called BitcioinShrooms. The result of the sale saw a five times increase in value. The second contributor to the NFT sle 2023 was the mentioned earlier, the Vincent Van Gogh-inspired Bitcoin NFT sales. The third aspect was the meme coin and BRC-20 token trading craze involving SATS, RATS, and MICE.

Despite the prolonged slump, the NFT marketplace may experience a significant rise, given the Bitcoin surge continues to surpass our expectations.

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Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.