NFT trading is on the rise, and according to a new report from DappRadar, the trading of NFTs increased by over $311 million in the first quarter of 2023. The report also states that virtual land trading has been driven by Yuga Labs and MG Labs, with 147,000 land trades in Q4 of 2022.
NFT Projects Doing Well in 2023
Otherdeed NFTs linked to the cloud in the parent metaverse, Otherside, saw a staggering $222 million in Q1 of 2023. In addition, the report highlights that a particular Otherdeed NFT from the Otherdeed NFT collection sold for over $2.85 million, roughly 186 ETH at the time of the trade.
This value represents the highest recorded sale for virtual land in the last quarter. Earlier in March, Yuga Labs announced a second drop for its investors in Otherdeed NFTs, likely a possible reason for the uptick.
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Another reason that may have seen a sharp uptick is Blur’s airdrop seasons and farming. According to Sara Gherghelas, an analyst at DappRadar, NFT whales turned to virtual farming and are especially interested in the MGland project, an NFT collection.
The Sandbox and Axie Infinity also made it to the top lists with impressive figures; however, they fell short of lesser-known players in the industry, including Createra Genesis Land, which had over $14 million in trading volume.
The Createra Genesis Land crew raised over $10 million in January, which was funded majorly by A16z, and according to the company, they will focus on metaverse creations. For Decentraland, the active wallets have seen increased activity in the last few days, partly due to the platform’s upcoming virtual fashion week later in the week.
This news has also bolstered the platform’s trading volume by over 60%. At the same time, 10KTF, a company in the blockchain space owned by Yuga Labs, also saw a massive spike in trading volume in Q4 across most of its collections.
According to Gherghelas, 10KTF has recorded the highest number of collections in the quarter. DappRadar also notes a staggering $417.5 million invested in blockchain games and metaverse projects in the first quarter of 2023.
They say that the activity in the two sectors has seen a massive uptick, with big tech inspiring the space with investments. Many companies have been entering the metaverse, and investors are growing, hoping the sector will become profitable soon.
Luxury fashion In The Metaverse
According to the report, luxury fashion NFTs saw a massive uptick in the first quarter, driven by new entries in the game, such as Louis Vuitton, earlier in the year. Some other notable brands include Adidas and Nike, with Decentraland and Yuga Labs being the surprise entrants in the top fashion lists.
The 10KTF collection was the biggest player, boosting Yuga Labs and accounting for more than 74% of the trading volumes. Yuga Labs acquired the collection in 2022 after it was launched in 2021.
According to Beincrypto, the new wave of fashion brands in the metaverse is driven by Gen Z and millennials who value their real-life appearances. In addition, the outlet notes that digital fashion designers are looking to capitalize on the digital fashion space to ensure they are at the forefront when the industry booms.