Metaverse NFT Trading Hits Record Highs, DappRadar Says

DappRadar’s report noted the increasing institutional interest and new development in the space has led to impressive numbers.

Animated purple robot character in the metaverse.
  • Metaverse NFT trading volume reached an all-time high in Q1 2023. 
  • Virtual land trading soared by 277% since Q4 2022. 
  • Digital Fashion and Web3 gaming emerged as top prospects for growth.

Interest in Web3 gaming and the metaverse has significantly increased in recent years. In the first quarter of 2023, the sectors have shown remarkable growth, with investors and companies flocking to capitalize on the trend. 

Record-Breaking Performance

DeFi data aggregator DappRadar published a study on Thursday, March 20, citing the record-breaking performance of the metaverse industry in Q1 2023. The report noted the increasing institutional interest and development in the space, which led to unprecedented numbers. 

Sponsored

According to DappRadar, NFT trading had significantly increased in the first quarter, totaling $311 million – a 277% increase since Q4 2022. At the same time, virtual land trading set a new all-time high, recording 146,690 trades. 

DappRadar graph of top metaverse platforms.

Top metaverse platforms. Source: DappRadar

The report expressed that platforms like Yuga Labs’ Otherside and MG Land were major proponents behind the spike in trading volumes. 

Yuga Labs’ Otherdeed NFTs registered an impressive $222 million, accounting for a 71% share of the total NFT trading volume in Q1. Similarly, MG Land emerged as a top performer, reporting $60 million in trading volume. 

Sponsored

However, DappRadar later noted that the high trading volume could be attributed to NFT whales trying to farm BLUR tokens via these platforms’ NFT collections. 

Metaverse platforms Createra Genesis Land, The Sandbox, Axie Infinity, and Decentraland were among the best-performing in Q1, collectively generating about $21 million in trading volume. 

Current numbers align with the historical performance of the Web3 gaming and metaverse industries. DappRadar says the sector has amassed over $11 billion since 2021 and will continue to do so in 2023. 

Web3 Games Attract Everyone But Gamers

Since the start of this year, investors have poured $502 million into Web3 gaming and metaverse platforms, accounting for 32.7% of total investments in crypto in 2023. 

Dapp Radar diagram of investments in metaverse projects.

Investments in Metaverse and Web3 gaming projects. Source: DappRadar

DressX, CCP Games, and legacy gaming companies moving to Web3 have attracted millions of dollars in investments. However, despite increasing interest, many high-profile fundings have struggled to hit it off with gamers as they look for substance beyond the hype.  

On the other hand, the Digital Fashion industry continues to welcome users to try on virtual dresses. 

Fashion Attracts Users

DappRadar reports that there has been a significant surge in Unique Active Wallets (UAW) for Decentraland over the last week. The platform’s hit fashion event, Decentraland Metaverse Fashion Week, is set to return on March 28, and it’s likely why users are increasing. 

Decentraland Metaverse Fashion Week.

Decentraland Metaverse Fashion Week.

Luxury Fashion industry veterans like Tommy Hilfiger, Dolce & Gabbana, and more will showcase their creations on a virtual ramp walk. 

Consequently, many luxury fashion brands are joining the sector to offer users new and unique digital experiences. DappRadar’s document notes that fashion brands have generated an all-time high volume of $366 million across 39 NFT collections, with Adidas’s NFT collection listing a $144 million trading volume. 

However, since the start of the year, newer players like 10KFT have dominated the sector with a 74% share in Fashion NFT trading volume. DappRadar attributes the platform’s success to its acquisition by Yuga Labs

On The Flipside

  • Recently, Meta rolled back on its metaverse plans by discontinuing support for NFTs on Facebook and Instagram. 
  • Yuga Labs released one of the hottest gaming challenges this year, raking millions of dollars in secondary sales and hours in playtime.
  • DappRadar’s report doesn’t note the rise of bitcoin ordinals, which has also shown exceptional growth in Q1 2023. 

Why You Should Care

Q1 2023 is groundbreaking for Web3 gaming and the metaverse. There’s an increasing number of industries exploring the sector in meaningful ways. The record investments and trading volume could set a precedent for the rest of the year. 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.