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- NFT trading volume plunged 63% in two months, signaling a major market slowdown.
- AI dApps surged, with LOL gaining 40% more users and Evermoon adoption soaring by 988%.
- AI-generated content is rising, with Fractal Visions’ user base growing by 721% last month.
The market trends suggest that AI dApps are on the verge of rising steeply while the NFT is struggling to maintain its stance in the markets. A report released by DappRadar has revealed that a new trend in the web3 space that NFT trading has dipped by 63% in the last two months.
While in December, NFT trading volume was at $1.36 billion, it dropped to $997 million in January and continued to decrease to $498 million in February. The overall decrease in trading also impacted the sales of NFT that was down by 16% in the last month, which reaffirms the slowdown.
Source: DappRadar
AI NFTs Rising
However, some collectibles remain quite strong, as evident by the fact that Pudgy Penguins sales increased by 25%, although the prices were on the trend of declining. The company also attracted attention by revealing that it would be launching a Solana-based cryptocurrency, DOOD, which could add further use to the platform.
Non Fungible Technology (NFT) projects remain underperforming while the Artificial Intelligence (AI) NFT projects are emerging to the market. The AI-based collection Kaito Genesis proved to have its floor price raised to 7.65 Ethereum after entering a collaboration with Azuki.
The report indicates that AI projects received an intensive surge in user wallet activity. In February LOL gained 40% new users who increased its social AI network to 5.1 million people. Evermoon experienced one of the most dramatic increases by growing its adoption by 988%.
AI dApps Shape Web3
It is also important to notice that use of the AI-generated content is gradually increasing too. Fractal Visions – a site that offers the creation of art with the help of AI – upped its user base by 721 percent in the past month. It is likely that due to the popularity of AI-created assets, traditional NFT will be displaced in the future.
The performance of NFT equals the decline of the decentralized finance (DeFi) industry. The total value locked (TVL) in DeFi also went down from $217 billion in January to $168 billion in February. A reduction in the liquidity staking led to the Overall TVL of Ethereum to reducing to $97 billion from $135 billion.
However, some of the blockchain networks persevered with development during this period. Nevertheless, Berachain went against this trend and rose to $5.05 billion in TVL, and Aptos was up by 6% to reach $1.83 billion.
While, the interest in NFTs begins to decline, AI dApps are becoming the future of web3. However, with automation and machine learning being the prime determinants of innovation, the industry might be slowly moving toward more complex forms of digital collectibles other than collectible tokens.
