#NFT trading volume is up, but buyers are down significantly.#

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Overview

Despite a 10.7% week-over-week increase in NFT trading volume to $155.4 million, market participation has declined significantly, with the number of NFT buyers falling 81.79% to 122,806 and NFT sellers dropping 73.24% to 104,090. This suggests that the growth in NFT trading volume is primarily driven by a few large transactions rather than widespread market participation. While Ethereum network NFT trading volume grew by 13.09% and Bitcoin network NFT trading volume also saw a slight increase, the number of buyers declined significantly on both networks. This may indicate that the NFT market is undergoing an adjustment, with market participants taking a wait-and-see approach, waiting for clearer signals.

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Analysis

Despite a 10.7% week-over-week increase in NFT trading volume to $155.4 million, market participation has significantly declined, indicating that the surge in volume is not driven by an influx of new buyers but rather by large transactions from a small number of buyers. Specifically, the number of NFT buyers decreased by 81.79% to 122,806, the number of NFT sellers decreased by 73.24% to 104,090, and the number of transactions only rose by 0.16% to 1,483,044. This suggests that the NFT market is currently in a relatively quiet state, with market participants' enthusiasm for NFTs waning, and trading concentrated on a small number of high-value NFTs. This phenomenon could be attributed to the recent overall decline in the cryptocurrency market and the lack of new blockbuster projects in the NFT space.

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Classic Views

NFT trading volume increased, but the number of buyers and sellers dropped significantly, indicating an increase in trading volume but a decrease in market participation.

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The growth in NFT trading volume was mainly driven by a few high-priced transactions, rather than widespread market participation.

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The NFT market is experiencing a trend towards centralization, with a few projects and traders dominating the market, leading to increased trading volume but fewer participants.

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The NFT market may be going through an adjustment phase after a bubble burst, with declining trading volume but some projects and traders remaining active.

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