According to the Block Data Dashboard, NFT trading volume has already topped $6.13 billion this month. As a result, the NFT volume increased by 129% in January 2022 compared to December 2021.
Many in the NFT space attribute this expansion to the advent of LooksRare. LooksRare, a new NFT marketplace, debuted on January 10th. Despite being a young platform, it is quickly distinguishing itself and establishing itself as a significant rival in the NFT arena.
OpenSea, the world’s largest NFT marketplace, is under danger from LooksRare. Recently, the latter has been plagued by a string of errors that have harmed its user base. LooksRare, on the other hand, is becoming an appealing OpenSea alternative thanks to its LOOKS tokens.
LOOKS tokens can be earned by creators, merchants, and collectors. This is due to the fact that LooksRare users earn LOOKS tokens when they buy and sell NFTs. They can also receive incentives by staking the token on LooksRare.
Despite this encouraging trend, The Block Research pointed out that the majority of the new NFT marketplace’s trading volume is due to wash trading, a type of market manipulation in which an investor sells and buys products at the same time in order to drive up volume and prices.
Aside from Ethereum marketplaces, total NFT sales on Solana have surpassed $1 billion in total volume. Meanwhile, Coinbase has entered the fray by launching its own NFT marketplace. Its soon-to-be-launched NFT marketplace is eagerly anticipated by NFT fans, especially since Coinbase announced its cooperation with Mastercard, which would allow anyone with a Mastercard card to purchase NFTs.