The Growing Popularity Of NFTs In Early 2023

NFTs have become increasingly popular in recent years as a new type of investment tool and the latest reports state that this number continues to grow.

Since the initial creation of non-fungible tokens (NFTs)-a digital asset based on blockchain technology that can typically take the form of specific digital artwork, music, and video -the market has grown significantly. Despite ongoing fears that NFTs will meet the same fate as ICOs, NFTs continue to be created and invested in.

DappRadar’s latest analysis reports that NFT trading volume grew 117% in February 2023, reaching over $2.04 billion. In January, the turnover of NFTs amounted to USD 941 million.

However, some experts claim that this figure could be due to certain market manipulations. It is suspected that most of the trades in February were made on the Blur platform, which is suspected by many analysts of distorting the indicator. For example, the platform lures users by offering them a financial reward if they do not trade on other NFT markets. For example, the platform Cryptoslam, which also tracks NFT trading, stated that it would pull $577 million in sales from Blur due to “market manipulation”.

NFTs as an investment tool

NFTs have become increasingly popular in recent years as a new type of investment tool. While NFTs can certainly be bought and sold as investments, it is important to recognise that they are a relatively new and untested asset class.

The value of NFTs is largely determined by market demand and can therefore be subject to significant fluctuations and price swings. A proper understanding of blockchain technology, cryptocurrency investing, and potential market manipulation is required to make profitable investments in this market. NFTs are generally considered a high-risk investment, and investors should be prepared to lose some or all of their investment.

Although NFTs may be considered an investment tool, they should be approached with increased caution and only after careful consideration of the risks involved.