This article is the result of Orc Trade's core team's multi-angle research on the current data performance of the NFT market and NFT product technology. I hope that these research results can be shared with the community. If you have any ideas and suggestions after reading it, welcome to communicate.

We select the public chains with the most mainstream layout of NFT in the current market, such as: Ethereum, Polygon, Solana, and conduct data analysis on the NFT trading platforms of the above three public chains ( as of November 4, 2022 ), and obtain some conclusions:

• While we see NFT trading platform trading volumes continue to decline, user activity is growing

• Ethereum is still the most important NFT trading network

• OpenSea dominates the market for NFT exchanges

  For details, please refer to the following:

Ethereum

• Transaction volume increased by $3,435M in the first half of 2022 relative to the second half of 2021, an increase of 19.69%

• 2022 Q1 transaction volume is $10,667M, Q2 Q2 transaction volume is 6,780M, Q3 Q3 transaction volume is 1,379M

• The Q2 quarter of 2022 is 36% lower than the Q1 quarter, and the Q3 quarter is 36% lower than the Q2 quarter, a decrease of 79.7%.

• The number of users in Q2 in 2022 is 15.56% lower than that in Q1, and the number of users in Q3 is 10.27% lower than that in Q2

• 55x more users in 2021 than in 2020

• As of today, the total user growth in 2022 is 1,604,980, an increase of 177.07%

Polygon (OpenSea: Listing Polygon on July 1, 2021)

• Polygon's transaction volume in the first half of 2022 decreased by $22,075,906.49 compared to the second half of 2021, a decrease of 7.4%

• 2022 Q1 transaction volume $197M, Q2 Q2 transaction volume $75M, Q3 Q3 $20.4M

• October volume was $14.9M and September volume was $7.2M, an increase of 107%

• The number of active users in Q3 in 2022 decreased by 0.54M compared with Q2, with a reduction rate of 61%

• As of today, the total number of users is 1.43M, with a total growth of 0.61M in 2022, a growth rate of 74%

Solana

• Transaction volume increased by $3,312,061 in the first half of 2022 relative to the second half of 2021, an increase of 45.74%

• The transaction volume in Q3 was 6M, and the transaction volume in Q2 was 4M, an increase of 25%

• Transaction volume increased by $1M in September compared to August, an increase of 21%

Note: The data comes from Dune and is not compared with the original data on the chain. There may be errors and are for reference only.

From the perspective of data, it is difficult for us to draw the internal factors of the above conclusions. Therefore, we analyzed from the perspective of products and users, interviewed other cooperation teams of ORC Trade and senior NFT practitioners, and summarized the following points. To support our conclusion:

Active Factors of NFT Market Users:

• Low cost (gas fee & price) and low threshold (understanding & interaction), NFT is relatively simpler than the participation experience of ordinary DeFi users

• The popularity of fiat payment tools has brought Web2 users an easier-to-operate NFT purchase experience

• Low-cost and efficient on-chain transactions have attracted a large number of Metaverse and Gamefi projects for Solana and Polygon, ensuring the growth of the number of transactions and users

Factors for the decline in NFT market transaction volume:

• The impact of the bear market: the decrease in the total transaction volume caused by the fall of the currency standard, the price decline of the currency standard is serious

• The shift of user attention: users have shifted from hyping NFT collectibles to paying more attention to the value empowerment of NFT and the application scenarios that can be implemented. The hype in the overall market has decreased, resulting in a decline in the transaction volume of high-net-worth and high-growth NFT projects. It does not prevent users from continuing to purchase NFT products with relatively stable value but with more valuable endorsements

• The distribution method consists of large-scale sales - large-scale Freemint - small-scale sales + whitelist over-issue, which reflects the changes in the degree of prudence of NFT participants and the changes in the income source of NFT projects

New Trends in The NFT Market:

• Ecological compatibility continues to improve: most wallets are compatible with the display and transfer of NFTs, OpenSea functions continue to improve, third-party NFT data analysis platforms emerge in an endless stream, and the development of NFT aggregation platforms/tools solves the liquidity problems of NFTs, such as Gem, Genie, Sudo, NFTX, ENS vision, reservation, etc.

• Rapid spread of social media: Twitter Discord has created countless NFT communities, and the network spread effect brought about by changing avatars has formed extremely fast user fission. After Twitter was acquired by Elon Mask, the business began to update, which will benefit the development of NFTs in the future

• NFTs continue to bring fresh blood to the encryption market, and the emerging high-quality projects continue to maintain the number of active users. The innovation capabilities and hotspots of the entire encryption circle are almost swept up in the NFT field

Some Innovations

The continuous innovation of the NFT market is the key to its activeness. If you pay attention to our ORC Trade, you will know that the " NFT And Web3 Daily News " we produce every day includes recent popular projects and platform feature innovations, NFT gameplay and Changes in the market:

• The Reddit NFT Web2 community has opened a new model to effectively guide users to the Web3 realm.

• NFT parameters can be seen in the new UniSwap code

• Twitter intends to bring NFTs to its experimental Tweet Tiles feature through partnerships with marketplaces like OpenSea

• OpenSea introduces SeaDrop feature, which enables NFT projects to be launched and minted directly on OpenSea

• OpenSea unveils two new NFT anti-theft features

• Yuga Labs will launch an open standard for metaverse NFTs, enabling NFTs to migrate between Otherside and other metaverses

• ……

Summarize

From the above point of view, we can conclude that the current low threshold of the NFT market, users' attention to intrinsic value, and lower-cost multi-chain options have attracted a large number of new users, projects and brands in the Web2 field. We are still optimistic about the development of the NFT market. At the same time, he also got a lot of inspiration on the development direction of Tokenlize. If DeFi projects want to gain faster user growth and achieve product innovation, exploration in the NFT field has become a compulsory subject.

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