According to DappRadar, unique traders rose 18% in October, indicating that NFTs are still in high demand

Key points: 

• Non-fungible token (NFT) trading volumes and sales may have declined in October, but analytics firm DappRadar said an 18% increase in monthly independent NFT traders suggests the market is still in a state of “huge demand.”
• Meanwhile, Ethereum’s NFT volume continued to decline for the second consecutive quarter, falling 21% last month to $324 million, the lowest volume on DappRadar since June 2021.
• The good news is that Polygon’s NFT trading volume has grown by 770% in the past month, which DappRadar says is due to the success of Reddit’s NFT collections as a key driver of the surge.

Non-fungible token (NFT) trading volumes and sales may have declined in October, but analytics firm DappRadar said an 18% increase in monthly independent NFT traders suggests the market is still in a state of “huge demand.”

According to a Nov. 3 report by DappRadar, the number of monthly unique NFT traders reached 1.11 million in October, up 18 percent from about 950,000 in September.

Although transaction volumes fell 30% to $662 million in October, a record low for 2022, while sales fell 30% to $6.13 million, the company said, adding:

“The rise in the unique traders’ count indicates that new people are entering the NFT market, and it is still in great demand.”

This month has been a busy one for the NFT community.

At least two other NFT marketplaces are transitioning to an optional licensing model, including Solana-based Magic Eden and Ethereum-based LooksRare.

The report also highlights that Yuga Labs continues to dominate the NFT market, with seven of the top ten sales this month coming from CryptoPunk and Bored Ape Yacht Club.

Of these sales, CryptoPunk #924 was the most valuable, selling for a whopping 475 Ether on October 27th, worth $731,435 at the time of writing.

Meanwhile, Ethereum’s NFT volume continued to decline for the second consecutive quarter, falling 21% last month to $324 million, the lowest volume on DappRadar since June 2021.

The good news is that Polygon’s NFT trading volume has grown by 770% in the past month, which DappRadar says is due to the success of Reddit’s NFT collections as a key driver of the surge.

Since its launch in July, more than 2.9 million Reddit avatars have been minted and entered into more than 2.8 million wallets, with Dune analytics data showing $10.1 million in sales completed in October.

With Meta announcing on November 2 that Polygon will be the first partner for its upcoming NFT tool, transaction volume for the Layer 2 solution is expected to continue to increase over the next month.

The report also mentioned that Dogecoin was the best performing coin of the month, ending the month 50% higher than it started, citing Twitter’s acquisition of Elon Musk and the announcement of Dogechain’s future roadmap as drivers.

It also highlighted a 6.84% month-over-month increase in the average number of unique active wallets. DappRadar noted that staking provider Lido has been integrated into Arbitrum and Optimism, as well as the partnership between Near Foundation and Google Cloud as drivers of this surge.