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NFT Monthly Report - October 2022
A monthly recap of the NFT market, covering the most important news, developments, and events in the NFT sector.
By: Khristian Flohr
In this Report:
- Reddit generated over 2.5 million in a day selling NFTs
- Apple's Controversial NFTs policy
- New NFT regulation by IRS
- Visa applies for NFT trademarks
- Market Statistics
- Chart Analysis & Rankings
October has ended, and things are looking brighter! At the time of writing, Ethereum is trading at $1.530. That’s 15% higher than last month! At the same time, Bitcoin is at $20.450, a 7% increase in the previous 30 days. It’s the first time we have seen this much growth in the last three months. They don’t call it Uptober for no reason!
While the total trading volume in NFTs remains low, we saw remarkable developments in the NFT sector! We'll give you a recap of the most relevant events that occurred in the last 30 days.
Top NFT News of the Month:
- Reddit generated over 2.5 million in a day selling NFTs. On July 2022, Reddit announced collectible avatars as profile pictures. Owning a collectible avatar grants unique benefits to holders. Since launch day, 3 million crypto wallets have been created. This surpassed the number of active wallets in OpenSea. One curious aspect of Reddit's strategy is that they kept the word 'NFT' hidden. Probably due to the controversial reputation NFTs have for the public. Instead, they sold them as collectible avatars, and sales skyrocketed!
- Elon Musk bought Twitter, and this time was for real! After closing the 44 billion dollar deal, Musk fired top executives CEO Parag Agrawal and CFO Ned Segal. Additionally, they recently announced an upcoming feature that allows users to display and sell NFTs through tweets. The company is also working on developing its in-house crypto wallet. This could be a great way to push large-scale adoption into the NFT sector.
- Apple has updated its guidelines which prevent NFTs from unlocking in-app content. As a result, apps can offer services to sell NFTs & services related to them as long as they use Apple's in-app purchases & don't unlock any features. Some people believe that a big player like Apple is what the NFT space needs, as it will make a large number of users familiarized with NFTs. Others think that Apple is being too strict by not allowing NFTs to unlock features, which is a common quality of an NFT.
- The U.S. Internal Revenue Service (IRS) released some necessary clarifications for NFT holders. According to the IRS 2022 Tax Year Guide. In 2022 NFTs will be seen as stablecoins & cryptocurrencies when it comes to declaring taxes. “Digital assets include virtual currencies, such as cryptocurrencies and stablecoins. If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes.” — IRS. Read more about it here.
- An NFT of a house sold for $175k. The company behind this is Rootstock chain which lets you buy properties using NFTs. This caused headlines as it’s a new concept for the Real Estate market. The Real Estate market is one of the sectors where NFTs have great potential. Throughout the year we have seen multiple properties being sold as NFTs and they seem to be gaining popularity.
- On October 22nd, VISA filed for two trademark application requests related to NFTs, Metaverse, and digital wallets. Recently we have seen payment processing companies adapting to stay relevant as the demand for crypto-related services grows. Western Union, American Express, and the New York Stock Exchange are some big names adopting cryptocurrency-related services. These strategic moves by large financial organisations represent positive news for the market as they expose a large number of new digital currencies and assets.
- NFTs are booming in Latin America. As a result to high inflation, citizens seek refuge in buying stable coins and digital currencies. According to a MasterCard survey, 51% of users in this region have made crypto transactions. A popular platform that is onboarding a high number of users in the region is Enigma, a web3 platform for artists and creators. Additionally, TravelX, has gained traction in this region. The platform started offering 2.5 million tokenised plane tickets, allowing users to buy, trade and sell flight tickets as NFTs. Will trading plane tickets be a thing of the future?
- Casetify, a phone case company, is integrating NFTs into physical cases. Purchasers of the NFT get a lifetime supply of phone cases and other benefits! Another use of NFTs linked to physical products. We might start to see more companies leveraging NFTs to sell more physical products.
NFT Market Statistics
- Monthly change: BTC 20.45 (+7%) | SOL $31 (-5.3%) | ETH $1.530 (+15%)
The total daily trading volume remains similar to the previous months. The chart below shows the constant downtrend in daily volume on Ethereum based NFTs.
Ethereum NFT Highlights:
- Another positive month for Black Box, part of the RENGA ecosystem. This collection has had an excellent performance in a couple of months. In October, the hype about this project has slightly cooled down, yet, it closes the month with a 12% increase. Black Box is currently trading at 2.55 ETH. RENGA is a project that joins art and storytelling.
- Azuki closed a month with a price of 19%. It’s been a remarkable recovery for the collection. It is currently trading at a floor price of 11 ETH in OpenSea.
- A project with an outstanding performance of 521% is Kitaro, a storytelling NFT collection tethered to in-real-life objects. It was one of the most popular projects in the last week of October.
- The Bored Ape Yacht Club is down -11%, Mutant apes -20%, and Otherdeed for Otherside -25%. That’s quite a decrease for the whole Yuga Labs ecosystem.
- Genuine Undead is a collection of 24*24 pixel PFPs on Ethereum. Launched in August, this project has an increase of 203% in floor value! It’s a small collection but shows promising numbers!
Solana NFT Highlights:
- Solana seems to be struggling, and their NFT community is feeling it! The monthly trading volume. We have seen daily traders moving to Aptos NFTs which are the new kid on the block!
- DeGods are at the top, recovering from last month’s low and currently sitting at 270.
- Y00ts is the most hyped collection at the moment. They have updated the art, and the hype is building as we approach the ‘art reveal’ soon!’
- Blocksmith Labs has been outperforming in the last couple of months. They are currently trading at 94 SOL.
That's all for this month's report! See ya next month!
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.