Non-fungible tokens (NFTs) witnessed a 15% increase in trading volumes thanks to the inability of the US Securities and Exchange Commission (SEC) to appeal the Grayscale Bitcoin Trust case.
According to on-chain data aggregator CryptoSlam.io, the NFT ecosystem has seen a significant increase of 15% in the past 24 hours. Total trading volume was $9.7 million. Notably, there has also been a 5.9% increase in the number of investors actively acquiring NFTs.
Ethereum-based NFT collections showed a remarkable 26.7% increase in sales and contributed $5.2 million to trading revenue in the same 24-hour period.
Digital collectibles on the Mythos Chain and Solana blockchain have also recorded notable spikes, with trading turnover of $1.3 million and $1 million respectively. Mythos Chain NFTs rose 4.5%, while Solana-based NFTs saw an impressive 23.5% increase.
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Grayscale vs. SEC
Digital currency asset management firm Grayscale is at loggerheads with the SEC following the latter’s rejection of its attempt to convert its Bitcoin Trust into a more investor-friendly spot BTC ETF.
In June 2022, Grayscale initiated a legal dispute against the regulator after initially rejecting the proposed Bitcoin ETF without providing a specific reason. In August, an appeals panel in Washington DC declared the SEC’s decision invalid and arbitrary, indicating that the SEC should reconsider its actions because they were incorrect.
The future of Grayscale’s spot Bitcoin ETF remains uncertain. Its adoption has significant implications for the crypto market and, indirectly, for the NFT space. Because the two are linked, the decision on the approval of Grayscale’s ETF will likely have a substantial impact on the NFT market.
UK calls for NFT copyright protection
In addition, a cross-party committee of the UK Parliament has urged the government to take action to protect the rights of artists and consumers in the NFT market.
The committee members raised concerns about fan tokens in sports, a type of digital token that offers fans special access and rewards from their favorite teams. Their findings, detailed in a 500-page report, highlight the impact of blockchain and NFTs on arts and culture.
The report praises NFT technology for creating new opportunities for artists, such as reaching new audiences, fueling creativity and establishing ownership and originality. However, concerns were also raised about NFTs, including fraudulent activity and potential legal violations.
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Nearly 95% of NFTs have no market value
Complementing the continued evolution of the NFT market, dappGambl reports that nearly 95% of NFTs now have no market value. By their estimate, as many as 69,795 of the 73,257 digital collections have a zero Ethereum (ETH) market cap.
This revelation paints a grim picture of the current state of the NFT market. A significant majority of the collections remain unsold. Only 20% of identified collections have been able to secure full ownership, underscoring the challenging landscape NFT creators and buyers now face.
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