Despite a significant dip in the global NFT market, former POTUS Donald Trump’s NFT collection is soaring in popularity.
Trump NFTs Defy Market Decline
The global NFT market faces a continued decline in trading volumes, marking a third consecutive week of decreasing activity. However, amidst this downturn, former US President Donald Trump's NFT collection emerges as an anomaly, thriving against the prevailing market trend.
In January, the Polygon network experienced a noteworthy 70% surge in NFT sales, primarily attributed to the success of its most popular NFT collection - Trump Digital Trading Card Series 2. The collection notched a significant 25% increase in floor price, fueled by heightened anticipation surrounding the upcoming US election season and Trump's campaign efforts.
Strategic Moves: Trump's Bitcoin Ordinals
Capitalizing on his current popularity, Donald Trump strategically launched his NFT collection in the form of Bitcoin Ordinals. Additionally, he announced a bonus Bitcoin Ordinal for buyers acquiring at least 100 Trump Mugshot NFTs. This shrewd strategy proved effective in boosting Trump NFT sales, even as Bitcoin Ordinals collections experienced a substantial 35% decline in sales for January 2024.
Global NFT Market Faces Trading Volume Decline
Contrary to Trump's NFT success, the broader NFT market presents a different narrative. On-chain data aggregator CryptoSlam reported a significant 22.5% drop in trading volumes, with total sales barely reaching $223 million for the last week.
However, it is to be noted that there has been an increase in the number of active participants in the NFT market. The last week witnessed over 734,000 collectors actively involved in NFT sales across multiple platforms, a 34% increase from the previous week. This data indicates that although trading volumes are decreasing, there is a growing interest in NFTs.
ETH And SOL Based NFTs Struggling
Even the most popular Ethereum-based NFT collections felt the effect of a decreasing trading volume. The floor price of CryptoPunks and BAYC has been down nearly 8% in the past two weeks. Expert reports suggest that NFT collections on networks like Solana and Avalanche have also witnessed significant wash trading activities, a practice where the same NFT is repeatedly bought and sold to artificially inflate market activity.
Shifting Dynamics: NFT Market Diversification
While the NFT market showed signs of improvement in late 2023, the current scenario suggests a return to a bearish trend. However, interest might be shifting to less popular networks such as Polygon and Avalanche, both experiencing remarkable growth this month. The market is diversifying rather than strictly contracting, indicating a potential shift in user preferences and a broader transformation within the NFT business landscape.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
