NFTs experienced a robust 15% surge in trading volumes, attributed to the U.S. Securities and Exchange Commission’s (SEC) decision to forgo an appeal in the Grayscale Bitcoin Trust case.
According to data from the on-chain aggregator CryptoSlam.io, the NFT ecosystem observed a significant uptick of 15% within the past 24 hours, with the total trading volume exceeding $9.7 million. Notably, there was also a 5.9% rise in the number of investors actively engaging in NFT acquisitions.
Ethereum-based NFT collections demonstrated a notable 26.7% increase in sales, generating $5.2 million in trading revenue during the same 24-hour period.
Meanwhile, digital collectibles on the Mythos Chain and the Solana blockchain experienced substantial spikes in trading activity, amassing sales of $1.3 million and $1 million, respectively. Mythos Chain NFTs saw a 4.5% uptick, while Solana-based NFTs exhibited an impressive 23.5% rise.
In related news, the SEC has taken legal action against the creators of ‘Stoner Cats’ NFTs, alleging the sale of unregistered securities.
Grayscale vs. SEC
Grayscale, a digital currency asset management firm, has been in a contentious situation with the SEC ever since the SEC declined its request to transform its Bitcoin Trust into a more investor-friendly spot Bitcoin ETF.
This legal dispute began in June 2022 when Grayscale challenged the SEC’s initial rejection of the proposed Bitcoin ETF, which lacked a specific explanation. In August, a panel of judges in Washington, D.C. ruled that the SEC’s decision was both invalid and arbitrary, urging the SEC to reconsider its actions due to their apparent inaccuracies.
The fate of Grayscale’s spot Bitcoin ETF approval remains uncertain, and its approval carries significant implications for the cryptocurrency market and indirectly influences the NFT space. Given the interconnected nature of these markets, the decision on Grayscale’s ETF approval is expected to exert a substantial impact on the NFT market.
The United Kingdom is advocating for copyright protection for NFTs (Non-Fungible Tokens).
Additionally, a bipartisan committee in the U.K. Parliament has called on the government to implement measures that protect the rights of artists and consumers within the NFT market.
The committee’s members have voiced apprehensions, particularly about fan tokens in sports, a form of digital token that offers fans exclusive access and rewards related to their beloved sports teams. Their discoveries, outlined in a comprehensive 500-page report, shed light on the influence of blockchain and NFTs on the realms of art and culture.
The report commends the innovative potential of NFT technology in empowering artists by opening up new avenues to connect with fresh audiences, foster creativity, and establish ownership and originality. Nonetheless, it also raises concerns about NFTs, including potential fraudulent activities and legal infringements.
For more insights: Former BlackRock executives assert that the SEC is left with no alternative but to approve Bitcoin ETFs.
Approximately 95% of NFTs lack any market value.
As the NFT market continues to evolve, dappGambl has reported that nearly 95% of NFTs now have no market value. According to their assessment, an astonishing 69,795 out of 73,257 digital collections currently have a market capitalization of zero Ethereum (ETH).
This revelation offers a sobering insight into the present state of the NFT market, with a significant majority of collections remaining unsold. It’s worth noting that only 20% of the identified collections have managed to secure full ownership, highlighting the challenging landscape that NFT creators and buyers currently confront.
For more insights: A State Street expert believes that the approval of Bitcoin ETFs is inevitable.